EOFY Sales Boost June Retail, Caution Remains

Retail spending in June grew by 4.9% compared to the same period last year, with the latest data from the Australian Bureau of Statistics (ABS) showing a spike in consumer activity amid the EOFY sales blitz.

All categories experienced year-on-year growth. Other retailing - which includes cosmetics, sports and recreational goods) – experienced the most significant increase (up 6.9%), followed by clothing, footwear and personal accessory retailing (up 6%).

Spending increased in department stores (up 5.9%), household goods retailing – which includes furniture – (up 5.6%), food retailing (up 4%) and cafes, restaurants and takeaway (up by 3.3%).

Australian Retailers Association (ARA) CEO Chris Rodwell said the healthy spending in June is a sign consumer confidence is steadily improving but noted Australians are still holding back on big-ticket items, preferring to wait for major bargains - indicating caution remains in the cart.

"This is the highest monthly growth we've seen across the past year, compared to 2024 spending, which is a promising result during a period of challenging trading conditions. However, it's important to call out that while retail sales have lifted, this doesn't necessarily translate to a better operating position for retailers as EOFY discounts are more prominent in June," Mr Rodwell said.

"To bolster spending, it's important the RBA seize the moment and reduce interest rates. The improved inflation outcomes reported yesterday provided the impetus for a rate cut. This will help create momentum in the lead up to the peak retail period towards the end of the year.

"There's also a big agenda the Federal Government can action to support Australian retailers as they contend with volatility from trade wars and ultra-low-cost global competitors. If we want a stronger retail economy, we need a laser focus on cutting red tape and harmonising laws that add unnecessary costs and put upward pressure on prices. Some areas ripe for reform include payroll tax, planning, freight and logistics, environmental and waste regulation, and trading hours. It can also step up to co-ordinate a national approach to retail crime. Conservatively, retail crime is a $9 billion cost to retailers every year.

"We urge the Treasurer to use the upcoming roundtable to focus on policies that will strengthen the long-term future of Australia's $430 billion retail sector - enabling it to invest, grow and create jobs. Our small retailers are especially vulnerable to the protracted economic recovery and have borne the brunt of these ongoing challenges - as the backbone of the Australian economy, their recovery must be a priority for policymakers," he said.