New figures released today by the Australian Bureau of Statistics (ABS) show household spending on retail rose 4.8 per cent year-on-year in December 2025, easing from 7 per cent year-on-year growth in November. While this rounds out a solid peak trading period, the softer December result confirms many households brought forward their Christmas shopping, taking advantage of Black Friday discounts and spreading spending across October and November rather than the traditional December peak.
Total household spending on retail reached $38.6 billion, with growth strongest in cafes, restaurants and takeaway food services (up 8.2 per cent). More discretionary categories such as clothing, household goods and department stores recorded more modest gains, reflecting ongoing pressure on household budgets.
Spending was uneven across the country. Queensland and Western Australia led annual growth at 6.3 per cent and 7.6 per cent respectively, while New South Wales and Victoria grew by just over 3 per cent in the month.
ARC CEO Chris Rodwell said the data shows consumers remain highly price-sensitive, with retailers operating in an increasingly uncertain environment.
“For retailers, December has historically carried much of the heavy lifting for the year. When spending is pulled forward into earlier discount periods, it can place additional pressure on already thin margins,” Mr Rodwell said. “We’re not seeing the levels of consumer confidence that will sustain higher levels of spending. Households are chasing discounts, shopping earlier and tightly managing what they spend. Cost-of-living pressures are still very much front of mind. The recent interest rate rise will add to this uncertainty, further undercutting confidence for businesses and their customers.”
Mr Rodwell said the concern is that short-term slowdowns could become a longer-lasting trend.
“Retailers have absorbed several patchy years post-COVID. With interest rates rising again, mortgage costs increasing and energy rebates ending, consumer spending remains fragile. The cost of doing business continues to climb – from significant rent and wage increases to energy, insurance and supply chain costs along with the intense cost of retail crime. Families are under pressure, and businesses are having to work harder for every dollar,” he said. “Urgent economic reform that eases the cost of doing business will be critical if we’re to avoid a broader slowdown in consumer spending.”
December 2025 retail spending year-on-year:
- Household goods retailing: up 4.6%
- Other retailing: up 7.7%
- Cafés, restaurants and takeaway food services: up 8.2%
- Clothing, footwear and personal accessory retailing: up 3.1%
- Department stores and large online retailers: up 3.45%
- Food retailing: up 2.9%
By state:
- NSW: up 3.3%
- Victoria: up 3.8%
- Queensland: up 6.3%
- South Australia: up 5.7%
- Western Australia: up 7.6%
- Tasmania: up 5.3%
- Northern Territory: up 5.1%
- ACT: up 3%
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About us: Australian Retail Council (ARC) represents a $444 billion sector that employs 1.4 million Australians across metropolitan, regional, and remote communities – making retail the largest private sector employer in the country and a significant contributor to the Australian economy. Our membership spans the full spectrum of Australian retail, from family-owned small and independent retailers that make up 95% of our membership, through to our largest national and international retailers that employ thousands of Australians and support both metropolitan and regional communities every day.