The Australian Retailers Association (ARA) and the National Retail Association (NRA) said today’s ABS data showing a 5.7% annual rise in retail spending for the month of October demonstrates continued momentum for the sector, despite a sensitive economic environment and ongoing uncertainty around the interest rate outlook.
Seasonally adjusted retail spending for October reached $38.50 billion, up 5.7% from $36.42 billion in October 2024.
Growth was recorded across all major retail categories:
- Cafés, restaurants and takeaway food services – up 8.3%
- Other retailing (including online and recreational goods) – up 7.3%
- Household goods retailing – up 6.8%
- Department stores and large online retailers – up 6.7%
- Clothing, footwear and personal accessories – up 5.6%
- Food retailing – up 3.6%
Across the states and territories, growth was broad-based:
- Western Australia – up 7.6%
- Queensland – up 6.7%
- South Australia – up 5.6%
- New South Wales – up 5.6%
- Northern Territory – up 5.5%
- Victoria – up 4.6%
- Tasmania – up 3.8%
- ACT – 9%
ARA CEO Chris Rodwell said the results reflect retail’s steadily strengthening performance, after a long period of subdued spending.
“This is a robust result in what remains a challenging retail landscape. It reflects the steady growth that has characterised this year. October spending likely reflects a trend towards early Christmas shopping as households look to balance their budgets through the peak season period,” he said. “ARA-Roy Morgan data predicted that more than half (51%) of gift buyers already made purchases by mid-October.”
However, he cautioned underlying conditions remain sensitive, as shoppers respond to mixed economic signals.
“Spending conditions remain uncertain with mixed signals regarding interest rates and that is keeping some households cautious,” he said. “Even so, it’s pleasing to see such resilience which demonstrates that retailers are steadily returning to growth despite the challenges.”
With the peak trading season well underway, Mr Rodwell said the next few weeks are crucial for many retailers.
“Christmas trading is make-or-break for many retailers in discretionary categories,” he said. “A solid October gives retailers the confidence to plan, roster and stock appropriately, but every week from here counts. Retailers are working extremely hard to deliver value and service, and consumers are responding.”
Mr Rodwell also encouraged Australians to support local retailers this Christmas.
“Local retailers invest in Australian jobs and communities. We continue to urge shoppers to get behind the businesses that contribute to our economy, particularly as ultra-cheap offshore platforms grow market share without meeting the same regulatory, governance or employment obligations.”
View our latest peak season forecasts here.
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About us: The ARA and NRA, soon to amalgamate into the Australian Retail Council (ARC) on 1 February 2026, 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 memberships span 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.
