Solid spending data lights up Xmas expectations

Couple Christmas shopping. | Newsreel
Australian retailers are looking forward to a bumper Christmas. | Photo: Ivanko Brnjakovic (iStock)

Australian retailers are looking forward to a positive Christmas season with retail spending figures solid over the past year.

Australian Retailers Association (ARA) CEO Chris Rodwell said the latest Australian Bureau of Statistics (ABS) data showed a steady and reassuring result for retailers heading into the most important trading period of the year.

Mr Rodwell said the Monthly Household Spending Indicator for September showed total retail spending reaching $37.8 billion, up from $36.2 billion in September 2024.

He said every major retail category recorded growth over the year, led by:

  • Other retailing (which includes online and recreational goods) — up 7.2 percent.
  • Cafés, restaurants and takeaway food services — up 6.2 percent.
  • Household goods retailing — up 4.9 percent.
  • Clothing, footwear and personal accessories — up 3.5 percent.
  • Department stores and large online retailers — up 3.6 percent.
  • Food retailing — up 2.4 percent.

“Consumers are maintaining confidence, and every major category is in positive territory — that’s welcome news after two years of subdued growth and cost-of-living pressures.

“Across the last few months, there has been a sustained up-tick in overall levels of retail spending. This gives retailers a solid foundation to plan, hire and invest as we move into Christmas.”

Mr Rodwell said the November–December peak season could be make-or-break for many discretionary retailers.

“It accounts for a large share of annual profits and supports hundreds of thousands of jobs across the economy.

“Even a small lift in household spending at this time can make a big difference on the shop floor, in warehouses, and throughout local supply chains.”