Sales across the Australian fashion landscape surged in June 2025, driving a 4.9 per cent year-on-year spending lift for the whole retail industry.
The latest data from the Australian Bureau of Statistics (ABS) confirmed the growth, believed to be driven by a spending spree in end-of-financial-year sales
Other retailing – which includes cosmetics, sports and recreational goods – experienced the most significant year-on-year increase (up 6.9 per cent), followed by clothing, footwear and personal accessory retailing (up 6 per cent).
Spending also increased in department stores (up 5.9 per cent), household goods retailing (up 5.6 per cent), food retailing (up 4 per cent) and cafes, restaurants and takeaway (up 3.3 per cent).
The fashion sector also lifted from May to June 2025 by 1.5 per cent, with the ABS confirming clothing retailing saw the highest growth of $42.7 million (up 2 per cent), with footwear and accessories up $4.3 million (0.4 per cent).
Clothing, footwear and personal accessory retailing rose 1.5% ($47.0m) in June, in seasonally adjusted terms.
ABS head of business statistics Robert Ewing said the strong spending in June was driven by discounts linked to sales and new product releases.
“After steady growth throughout the year, mid-year sales events increased spending on discretionary items like furniture, electrical goods and clothing items,” Ewing said.
Australian Retailers Association (ARA) CEO Chris Rodwell said the healthy spending in June is a sign consumer confidence is steadily improving. However, he added Australians are still holding back on big-ticket items, preferring to wait for major bargains – indicating caution remains in the cart.
"This is the highest monthly growth we’ve seen across the past year, compared to 2024 spending, which is a promising result during a period of challenging trading conditions,” Rodwell said.
“However, it’s important to call out that while retail sales have lifted, this doesn’t necessarily translate to a better operating position for retailers as EOFY discounts are more prominent in June.
To bolster future spending, Rodwell said it’s important that the Reserve Bank of Australia reduce interest rates. He said the improved inflation outcomes earlier this week provides impetus for a rate cut.
“There’s also a big agenda the Federal Government can action to support Australian retailers as they contend with volatility from trade wars and ultra-low-cost global competitors,” Rodwell added. “If we want a stronger retail economy, we need a laser focus on cutting red tape and harmonising laws that add unnecessary costs and put upward pressure on prices.
“Some areas ripe for reform include payroll tax, planning, freight and logistics, environmental and waste regulation, and trading hours. It can also step up to coordinate a national approach to retail crime. Conservatively, retail crime is a $9 billion cost to retailers every year.”