June Spending Rises as Aussies Embrace EOFY Sales

Australian retail sales saw an overall year-on-year increase of 2.9% in June 2024, compared to the same month last year, with a welcome increase across all spending categories driven by mid-year/End of Financial Year (EOFY) sales.

The latest data from the Australian Bureau of Statistics (ABS) revealed June's retail spending totalled $36.2 billion nationwide.

'Other retailing' - including cosmetics, sports and recreational goods - saw the strongest growth in June (up 6.3%) year-on-year along with Department stores (up 4.2%). The staple category of food increased (up 3.1%) with Clothing, footwear and accessories showing welcome growth (up 2.2%) after three consecutive months of decline. Household goods (up 1.1%) and Cafes, restaurants and takeaway services were up modestly (up 1.1%).

Australian Retailers Association (ARA) CEO Paul Zahra said that while strong mid-year/EOFY sales would have fuelled the slight uptick, retailers still have a challenging road ahead.

"We saw many Australians embrace EOFY sales this year due to the ongoing cost-of-living crunch as a means of stretching their household budget," he said.

"While retailers have enjoyed a slight uptick during June, growth remains modest, and challenges remain as retailers navigate high business costs and a slowdown in discretionary spending.

"There is no doubt shoppers are still feeling the pinch and are therefore being stricter with their spending habits. The RBA decisions for the remainder of this year will have a critical impact on consumer spending and the viability of vulnerable retailers and in particular small business.

"Spending on essentials such as food has remained stable, and there has also been an ongoing shift towards lower priced, value-oriented products.

"The ARA continues to call for targeted government support for vulnerable businesses. Retailers are also battling a retail crime wave, ongoing labour shortages and continued supply chain pressures alongside the most intense changes to our workplace relations system in more than a decade," said Mr Zahra.

"Whilst June retail sales numbers are modestly pleasing, these results are predominately driven from discounting which may impact profitability for many discretionary retailers, particularly small businesses," said Mr Zahra.