Australians continued to spend more across retail compared to the same period last year, with the latest data from the Australian Bureau of Statistics (ABS) showing consumer spending during February 2025 at $37.1 billion, 3.6% higher than February 2024.
The ‘other retailing’ category – which includes cosmetics, sports, and recreational goods – experienced the most significant increase (up 5.5% year-on-year), followed by food, which rose 4.08% over last year. Spending increased at cafes (up 3.37%), department stores (up 3.23%) and in the household goods category (up 2.89%). There was marginal growth in clothing and accessories, which increased by only 0.4%.
While retail spending remains steady, cost-of-living pressures and economic uncertainty continues to impact consumer behaviour said Australian Retailers Association (ARA) Chief Industry Affairs Officer, Fleur Brown.
“This is a solid result during a challenging economic period. While it is a disappointing result for clothing and accessories, with many retailers in that category under extreme pressure, it’s encouraging to see another month of steady growth across most spending categories,” said Ms. Brown.
“We know household budgets remain tight, and retailers are operating in a highly competitive and volatile environment with rising business costs. Any signs of stability in consumer spending are a welcome boost to business confidence, but we remain far from a retail recovery.
“We continue to call on the federal government to offer improved support measures for the sector, particularly small business, which is a key driver of the nation’s economy.”
National Retail Association Interim CEO Lindsay Carroll said the Valentine’s trade boost is welcome relief for many discretionary retailers who have been hardest hit by declining consumer sentiment over the last couple of years.
“Consumer sentiment is on the uptick, and February’s trading result is a reflection of that. Wages are up and inflation is down, so Aussies feel safer about spending.
“However, retailers are still struggling. Business insolvencies have shot up in the last couple of years, and the Federal Budget was a missed opportunity for the government to show the ailing sector a bit of love.
“We urge policymakers to focus on measures that boost investment and productivity, so that retailers, as the second largest employing sector in the nation, can continue to provide opportunities, job security, and sustainable growth for the economy,” said Ms Carroll.
ARA and NRA Federal Election Agenda is at this link.
