AUS
NZ
UK
CA
USA
IND
Highlights
- Australian retail turnover increased by 0.3% in January 2025, aligning with market expectations.
- Food-related spending rebounded, with cafes, restaurants, and takeaway food services leading the rise.
- Household goods retailing saw a notable decline after consecutive months of gains.
Retail activity in Australia saw an upward shift in January 2025, with turnover rising 0.3%, as per the latest data from the Australian Bureau of Statistics (ABS). This increase follows a 0.1% decline in December 2024 and a 0.7% rise in November 2024. The latest figures indicate that consumer spending remains resilient, particularly in food-related sectors.
Food and Hospitality Lead the Growth
A key driver of this month’s growth was the food sector, with spending bouncing back across cafes, restaurants, and takeaway food services, which recorded a 1.1% increase. Food retailing also saw an uptick of 0.7%, recovering from a previous dip. Large-scale events such as the Australian Tennis Open and major cricket matches contributed to the increase, with heightened demand in catering services boosting the sector.
Most non-food industries also posted gains, with other retailing leading at 2.4%, followed by clothing, footwear, and personal accessory retailing at 2%. Department stores recorded a modest rise of 0.6%, suggesting steady consumer demand across various retail categories.
Household Goods Take a Hit
Despite the overall retail growth, household goods retailing saw a sharp decline of -4.4%. This drop comes after four consecutive months of increases, largely driven by deep discounting during Black Friday and Cyber Monday sales events. With these promotions concluding, demand appears to have softened, impacting the segment’s performance.
Regional Performance Varies
Retail turnover saw gains in most Australian states and territories, reflecting broad-based economic resilience. However, New South Wales experienced a slight dip of -0.3%, while the Northern Territory remained largely unchanged.
Broader Market Implications
As discretionary spending continues to influence overall retail growth, businesses in the sector, including Wesfarmers (ASX:WES), which owns retail chains such as Kmart and Bunnings, and JB Hi-Fi (ASX:JBH), a key player in household electronics, remain under focus. The hospitality and food retailing space also showed strength, benefiting companies like Coles Group (ASX:COL) and Woolworths Group (ASX:WOW), which dominate the supermarket sector.
With spending patterns indicating steady consumer activity, retail businesses will be closely monitoring upcoming trends, particularly around discretionary purchases and economic influences that may shape the next quarter’s performance.
