Australian retail spending remained resilient in June, although weaker growth during the end-of-financial-year sales period shows consumers remain cautious and highly focused on value.
Australian Retail Council (ARC) analysis of new Australian Bureau of Statistics data shows household spending on retail reached $39.68 billion in June, up 4.7 per cent compared with the same month last year.
Annual growth slowed from 5.8 per cent in May, broadly aligning with earlier ARC and Roy Morgan research forecasting subdued growth during this year’s EOFY sales as households tightened their budgets.
Australian Retail Council Chief Economist Glenn Fahey said the result showed consumers were continuing to spend, but the headline figure overstates the underlying strength of the retail economy.
“Retail spending held firm in June, demonstrating Australian consumers remain more resilient than confidence measures would suggest,” Mr Fahey said.
“However, this was clearly a softer result than May, despite EOFY sales. Annual growth slowed from 5.8 per cent to 4.7 per cent during one of the retail calendar’s major promotional periods.
“Consumers have not stopped spending, but they are increasingly price-conscious and prepared to delay discretionary purchases until they see compelling value.”
Mr Fahey said the latest inflation figures also put the retail result into perspective.
“Headline inflation was running at 3.8 per cent in June, while trimmed mean inflation remained elevated at 3.6 per cent. Once inflation and discounting is taken into account, real spending growth is fairly soft—around one per cent on a broad inflation-adjusted comparison,” said Mr Fahey.
“That is positive growth, but it is well below what retailers would typically expect in a strong trading environment. Consumers are still spending, but the volume of additional goods and services being purchased remains modest.”
Cafes, restaurants and takeaway food services recorded the strongest annual growth at 7.1 per cent, followed by household goods retailing at 6.3 per cent.
By contrast, spending at department stores and large online retailers was broadly flat, declining 0.1 per cent compared with June last year. Clothing, footwear and personal accessory spending increased by a more modest 3.9 per cent.
Mr Fahey said EOFY discounting may have supported customer activity but can lead to pressure on retailer margins.
“Turnover should not be confused with strong profitability, particularly during discount periods. Retailers continue to face elevated costs across wages, energy, insurance, freight, leasing and supply chains, while cautious consumers limit their ability to recover those costs,” he said.
Retail spending by industry group — June 2026 compared with June 2025:
Spending increased across all states and territories, with the Northern Territory (+8.8%) and Western Australia (+7.5%) recording the strongest growth, while the Australian Capital Territory (+3.1%) and New South Wales (+3.2%) saw more moderate increases.
Retail spending by state and territory — June 2026 compared with June 2025:
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.
