Retail sales throughout the month of October were higher than the same period last year with the latest data from the Australian Bureau of Statistics (ABS) confirming a 3.4% increase year on year.

ABS category ‘Other retailing’ – which includes cosmetics, sports and recreational goods – continued to see strong growth in October (up 8.4% year-on-year) along with household goods (up 3.3%) and the staple category of food (up 3%).  

Cafes, restaurants and takeaway services showed marginal growth (up 2.3%), as did clothing, footwear and accessories (up 1.7%). Department stores recorded a slight increase (up 0.4%).

Australian Retailers Association (ARA) Chief Industry Affairs Officer Fleur Brown said that while the modest increase was welcome, 2024 remains challenging for retailers.

 “Increased costs of doing business, interest rates, retail crime, supply chain demands and more have continued alongside subdued consumer spending. 

“We again call for cash-rate relief to ease the pressure on businesses, especially for small business who operate on tighter margins, as they continue to battle tough economic headwinds.

“In a trend that shows shifting consumer habits due to the cost-of-living crunch, some Australians used October to plan for the holiday season early by beginning to stock up on gifts and make their purchases earlier than last year to assist with budgets.

“There is noticeable buoyancy in the “other” category, which includes cosmetics, sports and recreational goods, as shoppers prove the “lipstick effect” in action as they continue to spend on little luxuries and focus on health and well-being.   

“Retailers are now pulling out all the stops for peak season trading – the period where many discretionary retailers make up to two thirds of their annual profits.

“With record growth predicted for Black Friday and Cyber Monday sales, we’re hopeful of a better November to give confidence to retailers as they look towards the New Year.”

(ENDS).