Australians embraced Cyber Monday and Boxing Day sales along with festive spending in December, with the latest data from the Australian Bureau of Statistics (ABS) showing spending during the final month of the year was 4.6% higher than in 2023, with a total spend of $36.991 billion.
Household goods saw the most significant increase (up 7%), followed by ABS category ‘Other retailing’ – which includes cosmetics, sports and recreational goods (up 5.6 % year-on-year). Clothing, footwear and accessories were up 5% on the same time last year, while spending at cafes, restaurants and takeaways increased 4.7%. Food increased 3.5% and spending at department stores rose 1.6%.
Australian Retailers Association (ARA) Chief Industry Affairs Officer Fleur Brown said that these figures are a welcome uptick for retailers after a challenging 2024.
“December is a crucial month for retail, with many discretionary retailers making up to two thirds of their profits during the peak season period.
“From household goods such as kitchen appliances and electrical garden tools, to on-trend fashion items and cosmetics, it’s clear Australians rallied to the sales events and enjoyed splurging on gifts for their loved ones during the holidays.
“While these results are a relief for many, retailers continue to have a tough road ahead as they navigate a challenging landscape with pressures exacerbated by higher business costs, supply chain demands and the ongoing toll of retail crime.
“After many years of continued pressure, we are calling on the Federal Government to show support for the sector to ensure it can grow and thrive. We welcome the release of the Government’s small business strategy and financial boost announced today.
“Inflation is currently sitting within the prescribed range of the RBA. We think the Reserve Bank should consider starting the year off with a rate cut when spending is slow to bolster struggling retailers.”
Australians embraced Cyber Monday and Boxing Day sales along with festive spending in December, with the latest data from the Australian Bureau of Statistics (ABS) showing spending during the final month of the year was 4.6% higher than in 2023.
Household goods saw the most significant increase (up 7%), followed by ABS category ‘Other retailing’ – which includes cosmetics, sports and recreational goods (up 5.6 % year-on-year). Clothing, footwear and accessories were up 5% on the same time last year, while spending at cafes, restaurants and takeaways increased 4.7%. Food increased 3.5% and spending at department stores rose 1.6%.
Australian Retailers Association (ARA) Chief Industry Affairs Officer Fleur Brown said that these figures are a welcome uptick for retailers after a challenging 2024.
“December is a crucial month for retail, with many discretionary retailers making up to two thirds of their profits during the peak season period.
“From household goods such as kitchen appliances and electrical garden tools, to on-trend fashion items and cosmetics, it’s clear Australians rallied to the sales events and enjoyed splurging on gifts for their loved ones during the holidays.
“While these results are a relief for many, retailers continue to have a tough road ahead as they navigate a challenging landscape with pressures exacerbated by higher business costs, supply chain demands and the ongoing toll of retail crime.
“After many years of continued pressure, we are calling on the Federal Government to show support for the sector to ensure the sector can grow and thrive. We welcome the release of the Government’s small business strategy and financial boost announced today.
National Retail Association (NRA) Interim CEO Lindsay Carroll said that positive December sales are a sign that consumer sentiment is healing, but it’s also a sign that Aussies won’t pass up a bargain.
“Discretionary spending was slack all through last year, so this boost is invaluable to retailers who rely on this spending category to get by.
“The holiday season sales boost isn’t enough to carry businesses through to the quieter months of the year with conservative spending habits likely to continue.
“Retailers have urged the Reserve Bank of Australia to cut interest rates in February after a boost from silly season sales in December.
“Inflation is currently sitting within the prescribed range of the RBA. We think the Reserve Bank should consider starting the year off with a rate cut when spending is slow to bolster struggling retailers.”
(ENDS)
CATEGORY | Dec 2023 | Dec 2024 | CHANGE |
Food | $14.139 bn | $ 14.635 bn | + 3.5 % increase |
Household goods | $ 5.733 bn | $ 6.140 bn | + 7 % increase |
Clothing, footwear, accessories | $ 2.864 bn | $ 3.006 bn | + 5 % increase |
Department stores | $1.890 bn | $ 1.919 bn | + 1.6 % increase |
Cafes, restaurants, takeaway | $5.288 bn | $ 5.535 bn | + 4.7 % increase |
Other | $ 5.449 bn | $ 5.756 bn | +5.6 % increase |
Total
|
$ 35.363 bn | $ 36.991 bn | + 4.6 % increase
|
STATE | Dec 2023 | Dec 2024 | CHANGE |
New South Wales | $ 11.033 bn | $ 11.463 | + 3.9 % increase |
Victoria | $ 9.092 bn | $ 9.563 bn | + 5.2 % increase |
Queensland | $ 7.294 bn | $ 7.627 bn | + 4.6 % increase |
South Australia | $ 2.287 bn | $ 2.379 bn | + 4.05 % increase |
Western Australia | $ 3.959 bn | $ 4.206 bn | + 6.26 % increase |
Tasmania | $ .715 bn | $ .735 bn | + 2.83 % increase |
Northern Territory | $ .321 bn | $ .340 bn | + 5.82 % increase |
ACT | $ .664 billion | $ .678 bn | + 2.11 % increase |
Total | $ 35.363 bn | $ 36.991 bn | + 4.6 %increase |
ARA Media Enquiries:
M 0434 381 670
E media@retail.org.au
NRA Media Enquiries:
M: 0467 792 013
E: natasha.eric@sasgroup.net.au