Australian retail sales saw an overall year-on-year increase of 2.9% in June 2024, compared to the same month last year, with an increase across all categories driven by End of Financial Year (EOFY) sales.
The latest data from the Australian Bureau of Statistics (ABS) revealed June’s retail spending totalled $36.2 billion nationwide.
‘Other retailing’ including cosmetics, sports and recreational goods saw the strongest growth in June, up 6.3% year-on-year, along with department stores, up 4.2%.
The food category increased 3.1% with clothing, footwear and accessories showing growth of 2.2% after three consecutive months of decline. Household goods were up 1.1% and cafes, restaurants and takeaway services were also up 1.1%.
Australian Retailers Association (ARA) CEO, Paul Zahra said that while strong mid-year/EOFY sales would have fuelled the slight uptick, retailers still have a challenging road ahead.
“We saw many Australians embrace EOFY sales this year due to the ongoing cost-of-living crunch as a means of stretching their household budget,” he said.
“While retailers have enjoyed a slight uptick during June, growth remains modest, and challenges remain as retailers navigate high business costs and a slowdown in discretionary spending.
“There’s no doubt shoppers are still feeling the pinch and are therefore being stricter with their spending habits. The RBA decisions for the remainder of this year will have a critical impact on consumer spending and the viability of vulnerable retailers and in particular small business.
“Whilst June retail sales numbers are modestly pleasing, these results are predominately driven from discounting which may impact profitability for many discretionary retailers, particularly small businesses.”