Retail spending up across all categories in May

Sean Cao

26th Jun 2026

Australian retail spending recorded a solid increase in May despite subdued consumer confidence and ongoing cost-of-living pressures.

According to data from the Australian Bureau of Statistics (ABS), spending increased 5.8 per cent to $39.67 billion in the year ended May, with growth recorded across every retail category.

Food retailing rose 4.2 per cent to $15.5 billion, while household goods increased 6.4 per cent to $6.6 billion. Spending on clothing, footwear and accessories improved 6.9 per cent, cafes, restaurants and takeaway food services up 7.2 per cent, and department stores up 4.9 per cent.

Spending also increased across all states and territories, with the NT (8.1 per cent) and WA (7.3 per cent) recording the strongest growth. Queensland, SA and Tasmania recorded growth of 6.1-6.4 per cent.

Victoria and NSW saw more moderate uplifts of 5.1 per cent and 5.3 per cent, respectively. Spending in the ACT improved 3.9 per cent.

Australian Retail Council chief economist Glenn Fahey said the figures showed Australia’s retail sector continued to perform reasonably well despite households remaining under financial pressure. However, he noted that persistently high inflation means sales are more modest than the headline figure might suggest.

“While May was a robust month, we know retailers entered a much more subdued end-of-financial-year promotional period in June. 

“Our forecasts continue to point to relatively weak EOFY sales growth, reflecting the fact that consumers remain highly value-conscious and continue to carefully manage household budgets,” Fahey added.

• Further reading: Pain Free Aussies and Modern Aussies parent caught breaching consumer laws.