Retail Spending Steady In December: Australia

Australian retail turnover fell 0.1 per cent in December 2024, according to seasonally adjusted figures released today by the Australian Bureau of Statistics (ABS).

This comes after growth of 0.7 per cent in November 2024 and 0.5 per cent in October 2024.

Robert Ewing, ABS head of business statistics, said: "Retail spending held firm following strong growth in recent months with promotional activity stretched across the quarter.

"Cyber Monday fell in early December and boosted spending to begin the month, particularly on discretionary items like furniture, homewares, electronics and electrical items."

Trend estimates from March 2020 to June 2022 are not available due to the degree of disruption and volatility caused by COVID-19. Trend estimates throughout the pandemic period are likely to be unhelpful and potentially misleading for users in interpreting underlying trend in retail activity.

Turnover results were mixed across the industries.

Household goods retailing (1.6 per cent) had the largest rise, with a fourth straight month of growth over 1.0 per cent.

"Cyber Monday drove more spending on household goods as consumers took advantage of discounts on big ticket items," Mr Ewing said.

Department stores (0.4 per cent) and food retailing (0.1 per cent) also rose.

"Food retailing was impacted by supply chain disruptions this month, particularly in Victoria, which saw households shift some spending away from supermarkets," Mr Ewing said.

The rises were offset by falls in clothing, footwear and personal accessory retailing (-1.8 per cent) and other retailing (-1.4 per cent). Both industries had risen in November.

Cafes, restaurants and takeaway food services also fell (-0.5 per cent). This followed a November rise of 1.4 per cent, which was the largest since January 2024.

Retail turnover was mixed across the country with most states and territories seeing a fall.

Today's release also includes quarterly retail sales volumes, which rose 1.0 per cent (seasonally adjusted) in December quarter 2024.

This comes after volumes growth of 0.5 per cent in September quarter 2024 and a fall of 0.2 per cent in the June quarter.

"Retail sales volumes rose for the second straight quarter, boosted by continuous promotional activity," Mr Ewing said.

"Sales events throughout the quarter like Black Friday and Cyber Monday saw more discretionary spending on things like furniture, electronic goods and clothing."

Trend estimates from March 2020 to June 2022 are not available due to the degree of disruption and volatility caused by COVID-19. Trend estimates throughout the pandemic period are likely to be unhelpful and potentially misleading for users in interpreting underlying trend in retail activity.

Retail volumes on a per capita basis (0.5 per cent) rose for the first time since June quarter 2022.

"Per capita retail spending has risen for the first time in over two years. The rise coincides with an easing of retail price growth and with cost-of-living relief measures," Mr Ewing said.

Retail price growth (0.4 per cent) slowed this quarter, down from a 0.6 per cent rise in the September quarter, based on data from the latest Consumer Price Index.