EOFY sales lift Aussie retail spending but small business owners warn caution still in the cart

Asian woman shopping retail homewares
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End of financial year (EOFY) bargains gave Aussie retailers a healthy bump in June, with Australian retail turnover up 4.9 per cent compared to the same time last year, according to the latest ABS retail trade statistics. Month-on-month, spending rose 1.2 per cent in seasonally adjusted terms.

The EOFY shopping trends Australia data shows all retail categories enjoyed growth year-on-year. “Other retailing”,  including cosmetics, sporting and recreational goods, saw the biggest lift, up 6.9 per cent. Clothing, footwear and personal accessories followed closely (up 6 per cent), while household goods retailing rose 5.6 per cent. Department stores were up 5.9 per cent and food retailing grew 4 per cent. The only soft spot? Cafes, restaurants and takeaway, which slipped 0.4 per cent in June.

Household goods were a standout performer on the month, jumping 2.3 per cent, driven by strong demand for electronics (up 3.9 per cent) and furniture (up 3 per cent). Clothing retailing climbed 2 per cent, while department stores recorded a 1.9 per cent rise.

Online shopping growth 2025

Online shopping continued to surge, with total online sales up 3.9 per cent in June and a hefty 13 per cent higher than the same time last year. Non-food online sales rose 4.5 per cent, while food-related online purchases grew 2.5 per cent.

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The ABS also noted that in original terms, the proportion of online sales to total retailing rose from 11.9 per cent to 12.7 per cent over the year.

Confidence on the mend but margins still tight

Australian Retailers Association (ARA) CEO Chris Rodwell said the figures are the strongest monthly growth recorded over the past year, signalling that consumer confidence is improving. However, he cautioned that EOFY results don’t always translate to healthier bottom lines for small business retail margins.

“While retail sales have lifted, this doesn’t necessarily mean a better operating position for businesses, as deep discounts are more prominent in June,” Rodwell said.

He also warned that many shoppers are still holding out for bargains before committing to big-ticket buys, showing that cost-of-living caution remains.

Calls for rate cuts and reform

Rodwell urged the Reserve Bank to “seize the moment” and cut interest rates to maintain momentum heading into the crucial Christmas trading season. He also called on the federal government to focus on reforms that cut red tape, harmonise regulations across states, tackle retail crime costs Australia, (estimated at $9 billion annually) and help local businesses compete with ultra-low-cost global rivals.

“Our small retailers are especially vulnerable to the protracted economic recovery and have borne the brunt of these challenges,” he said. “As the backbone of the economy, their recovery must be a priority for policymakers.”

This month’s release also marks the end of the ABS’s Retail Trade, Australia publication after 75 years, with retail spending data moving to the new Monthly Household Spending Indicator.

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