Australian retail performance held steady in May, with data from the Australian Bureau of Statistics (ABS) showing consumer spending increased 3.3% year-on-year to $37.3 billion, compared to $36.1 billion in May 2024.

There were year-on-year increases across all categories in May, with the ‘other retailing’ category – which includes cosmetics, sports, and recreational goods – experiencing the most significant increase (up 4.78% year-on-year), followed by cafes, restaurants, takeaway, which rose 3.83% over last year. Spending increased at department stores (up 3.71%), clothing, footwear and accessories (up 3.5%), household goods (up 2.81%) and food (up 2.58%).

Australian Retailers Association (ARA) Chief Executive Officer, Chris Rodwell said while May results are encouraging, retail spending remains subdued.

“May growth is slightly lower than what we’ve seen in recent months, however performance continues to track modestly above 2024 growth levels. While inflation has metered back, with the CPI figure for May coming in at 2.1%, consumer confidence remains soft.

“It’s clear we remain far from a retail recovery. This means next week’s RBA decision on interest rates is pivotal. We are urging the RBA to cut the rate to bolster confidence and ignite a spending recovery in the second half of 2025.

“We also know that sales results are only part of the story with retailers continuing to battle higher business costs across leasing, wages, energy, insurance and the supply chain. That’s why we’re focused on governments doing what they can to improve productivity outcomes and reduce the impacts of regulation and compliance burden. Retailers need to be free to run their business and compete with rising global competition.

“Retail recovery is intrinsic to our economic recovery. As a sector which employs one in ten Australians, we want to shift gears to see retailers move out of survival mode into truly thriving and helping power our economy,” he said.

(ENDS)

ARA Media Enquiries:
M 0434 381 670
E media@retail.org.au