This is the latest instalment in a new partner series with The Retail Score, presenting a first-of-its-kind Fashion Retail Index that tracks top-line performance across the clothing, footwear and accessories industry.
The Australian fashion retail industry recorded a modest 1.0% increase in like-for-like sales for September 2026 compared with the same month last year.
The number of sales transactions increased by 0.2%, while the average selling price rose by 2.4%. However, the drop of 1.4% in unit sales suggests consumers remain cautious and continue to closely manage their discretionary spending.
Encouragingly, margins improved during September, reversing the softer results recorded over the previous two months. This correction is important as retailers move into the critical spring–summer and Christmas trading periods, when maintaining margin will be essential to delivering a strong end-of-year result.
Performance across the major retail channels was mixed. Online sales increased by 4.6%, while Standalone stores delivered more modest growth of 0.9%. Both Outlet stores and Department Store Concessions declined compared with last year.
Concession performance remains deeply concerning
Concession sales fell by 3.4% in September—one of the weakest monthly results recorded in recent periods.
The well-documented challenges facing both David Jones and Myer are clearly visible in The Retail Score Fashion Index. Concession sales have now declined in six of the past eight quarters and consistently perform under the Standalone Store Channel.
For the quarter ending September 2026, Concession sales were down 2.7%. This followed a 1.1% decline in the September 2025 quarter and an almost 3.0% decline in the corresponding quarter of 2024.
These are not simply isolated declines. They represent falls being compounded year after year on a like-for-like basis—and that is deeply concerning for the fashion industry. Concessions have historically formed an important part of the channel mix, helping fashion retailers build brand awareness, reach new customers and achieve consistent product sell-through.
With concession sales continuing to soften, it is understandable that many fashion brands are now questioning the role this channel plays in delivering revenue and margin growth.
Most retailers operating Concessions are acutely aware of the significant performance disparity across department store locations. Top-performing concessions—typically situated in major shopping centres or CBD locations—do perform strongly, provide an excellent showcase for a brand and generate consistent store profitability.
The picture is very different in smaller or regional department stores, where lower sales volumes can make individual concessions increasingly difficult to justify.
The commercial viability of these locations is now being brought into sharp focus. Multiple years of declining sales are being compounded by a steadily rising cost base, including higher wages, occupancy costs and other operating expenses.
The question for fashion retailers is no longer simply whether concessions remain an important sales channel. It is whether a broad concession network—particularly across lower-performing department store locations—can continue to deliver an acceptable financial return.
Unless sales performance improves, brands will increasingly be forced to reassess the size, structure and commercial logic of their concession strategies.