The Australian Bureau of Statistics (ABS) has reported strong growth of 4.6 per cent to $24.1 billion attributed to year on year sales.
Clothing, footwear and personal accessories indicate a spike in sales, recording an 8.8 per cent growth from May 2014 to May 2015.
Month on month sales from April to May grew by 0.5 per cent, with clothing, footwear and personal accessories falling marginally by -0.8 per cent as a sub-sector.
Australian Retailers Association (ARA) executive director Russell Zimmerman believes the figures indicate that consumer confidence in the retail sector is increasing.
“Consumers appear to have been more confident with the Government’s more conservative budget, and that has played out in the pleasing boost to May 2015 retail trade figures.
“In addition to the more appealing spending conditions, many states have seen an earlier winter in 2015, driving more shoppers into stores for winter essentials such as heating appliances and winter fashions.”
The ABS report also revealed retail growth by state, with Australian Capital Territory taking the lead at 7 per cent, followed by New South Wales at 6 per cent and South Australia at 5.5 per cent.
The Northern Territory was the only state that reportedly plummeted from last year at -1.4 per cent.
Zimmerman said positive results from almost every state could present retailers with key opportunities in the future.
“It’s important for retailers to be aware of the annual growth of their industry as opposed to monthly growth, as this is the figure most retail businesses use in their own reporting. Year on year figures provide the most accurate measure of the sector’s performance.”