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.
Australian fashion sales fell 3.2% year on year on a like-for-like basis in October, according to the latest figures from The Retail Score Fashion Index. Sales volumes were down 2.4%, while the number of transactions fell 3.3%—one of the sharpest annual declines recorded by the Index since the pandemic.
Weakness across channels
Trading was down across all the sales channels. Standalone store sales were -2.6%, whilst Online sales declined 2.1%, and concession sales dropped 9%.
The overall result would have been weaker without a calendar shift in Click Frenzy. The event moved from November in 2025 to October in 2026. Online sales rose 28% in the final week of October, helping to lift the monthly result. Without that boost, sales for the month would have been closer to -4% lower.
Is the consumer holding back - or under pressure?
The weak result raises two questions: are consumers delaying purchases ahead of Black Friday, or is spending under greater pressure following recent interest rate rises?
The decline was recorded across all channels and throughout October. That pattern suggests the weakness is more than consumers simply holding back for Black Friday. Pressure on household budgets appears to be persistent.
There was, however, some encouragement in the way retailers managed discounting. In previous periods of soft demand, retailers have often turned to heavier discounts to stimulate spending. In October, fashion retailers showed reasonable restraint. Discounts during the Click Frenzy period were also a few percentage points lower than during the 2025 event.
That discipline will matter through the Black Friday and Christmas trading period. Using price cuts to compete for a smaller share of consumer spending is risky if the extra sales volume does not make up for the lost margin. Retailers will need to balance three key levers: pricing, margin and operating costs. Getting that balance right will be critical over the next eight weeks.
Concessions reflect broader department store pressures
The 9% decline in concession sales points to the challenges facing the broader department store sector. The rate of decline increased from week to week, suggesting that negative sentiment may be affecting customer traffic as well as sales.
Recent reports that David Jones has entered administration is concerning for the fashion industry. They are also difficult news for not only the employees of David Jones, but for the fashion brands and their employees who rely on department stores to showcase products and reach customers.
The hope is that the sector can be reshaped to allow it to compete more effectively in the modern market, preserving a role for this historically important channel in the future.