ARA data reflects steady retail sales growth ahead of key Christmas season

Darshana Gupta

3rd Nov 2025

Australia’s retail spending rose 4.3 per cent in the year to September, providing a steady foundation for retailers ahead of the pre-Christmas trading season, according to new data from the Australian Bureau of Statistics (ABS).

The Monthly Household Spending Indicator showed total retail expenditure reached $37.8 billion in September, up from $36.2 billion the previous year.

Growth was recorded across all major retail categories, led by “other retailing”, which includes online and recreational goods, up 7.2 per cent. 

Cafes, restaurants and takeaway food services increased 6.2 per cent, household goods rose 4.9 per cent, department stores and large online retailers grew 3.6 per cent, clothing and footwear were up 3.5 per cent, and food retailing increased 2.4 per cent.

WA recorded the strongest rise, up 6 per cent year-on-year, followed by SA, up 5.1 per cent, and Queensland, up 4.9 per cent. 

NSW and Victoria saw moderate increases of 3.6 per cent and 3.9 per cent, respectively, according to the ABS’s data.

“Across the last few months, there has been a sustained uptick in overall levels of retail spending. This gives retailers a solid foundation to plan, hire and invest as we move into Christmas,” said Australian Retailers Association (ARA) CEO Chris Rodwell.

“That said, not all retailers across all categories are experiencing the same results, which underlines the need for continued focus on strengthening the Australian economy.”

Rodwell said the November–December peak trading period could “make or break” many discretionary retailers, accounting for a large share of annual profits and supporting hundreds of thousands of jobs.

“Retailers are working hard to deliver great value and service, and shoppers are responding,” said Rodwell.

“A steady spending environment provides the confidence needed to finish the year strongly.”

Rodwell also urged shoppers to support local businesses, warning that ultra-low-cost online platforms such as Temu and Shein were on the rise, but did not contribute to Australian employment or adhere to the same regulatory standards.