New figures released today by the Australian Bureau of Statistics (ABS) show household spending on retail rose 5 per cent year-on-year in January 2026, with Australians spending $38.63 billion, up from $36.79 billion in January 2025.
The result suggests consumer spending remains resilient following the peak retail trading period, with households continuing to spend cautiously amid ongoing cost-of-living pressures.
Growth was recorded across all major retail categories, led by cafés, restaurants and takeaway food services (up 8.7 per cent), followed by other retailing (up 7.8 per cent) and clothing, footwear and personal accessories (up 6.1 per cent).
More moderate growth was recorded in household goods retailing (up 4.1 per cent) and department stores and large online retailers (up 3.7 per cent), reflecting ongoing pressure on household budgets.
Spending growth was broadly consistent across the country. Western Australia (up 6.2 per cent) and Queensland (up 5.9 per cent) recorded the strongest annual growth, followed by South Australia (up 5.1 per cent) and New South Wales (up 4.7 per cent).
Australian Retail Council Chief Economist Glenn Fahey said the data indicates households remain cautious but are still spending where budgets allow.
“January retail spending shows Australian households continue to spend carefully, with steady growth across all categories following the peak trading season,” Mr Fahey said. “Consumers remain highly price-sensitive and are continuing to prioritise value as they manage ongoing cost-of-living pressures.”
Mr Fahey said it was important to note the January data predates several emerging economic developments that may affect consumer sentiment in the months ahead.
“These figures were recorded before the Reserve Bank’s February interest rate increase and before the recent escalation of geopolitical tensions in the Middle East,” Mr Fahey said. “If global instability leads to sustained increases in oil and energy prices, it could place further pressure on inflation and weigh on consumer confidence.”
Mr Fahey said retailers are navigating these economic uncertainties while already facing a cost-of-doing-business crisis.
“Retailers are dealing with rising costs across energy, logistics, wages, rents and regulation, all while working hard to keep prices affordable for Australian households.”
In its pre-Budget submission, the Australian Retail Council has called on the Federal Government to take steps to strengthen retail productivity and reduce unnecessary regulatory costs that ultimately flow onto prices on shelves.
“Retail employs more than 1.4 million Australians and plays a critical role in communities across the country,” Mr Fahey said. “It’s imperative that government policies back the retailers that back Australia — supporting investment, productivity, and the ability for businesses to keep prices competitive for consumers.”
January 2026 retail spending year-on-year (ABS):
Household goods retailing: up 4.1%
Other retailing: up 7.8%
Cafés, restaurants and takeaway food services: up 8.7%
Clothing, footwear and personal accessory retailing: up 6.1%
Department stores and large online retailers: up 3.7%
Food retailing: up 2.8%
By state:
NSW: up 4.7%
Victoria: up 4.4%
Queensland: up 5.9%
South Australia: up 5.1%
Western Australia: up 6.2%
Tasmania: up 4.6%
Northern Territory: up 3.7%
ACT: up 2.8%
E media@retail.org.au P 0434 381 670