The clothing, footwear and personal accessory retail sector experienced a rise in sales in September, lifting 5.9% ($96.1 million) in the month, new data from the Australian Bureau of Statistics shows.
As some COVID restrictions eased across the country, spending at retail lifted 1.3% month-on-month and 1.7% compared with September 2020.
This is the first monthly rise since May 2021, following falls of 1.7% in August and 2.7% in July 2021.
Department stores saw a slight decline in September, falling 0.3% month-on-month (-$4 million) the ABS reports.
ABS director of quarterly economy wide surveys Ben James said lockdowns impacted spend across the country.
"Retail turnover continues to vary by state, based on whether restrictions were imposed, removed or extended.
"Queensland sales rose to their highest level ever, up 5.2%, with no lockdowns in September.
"New South Wales also experienced a rise of 2.3% despite having lockdowns, as some restrictions were eased or lifted.
"However, turnover for New South Wales remains 11.9% lower than May 2021, the month before the most recent lockdown began," he said.
Meanwhile, a full month of lockdowns in Victoria and the ACT drove sales down, with Victoria down 2.1% in September to its lowest level since October 2020.
In the ACT, tight restrictions drove a 12% decline in retail turnover in September.
But with NSW, the ACT and Victoria all now out of lockdown and heading into the Christmas trade period, Australian Retailers Association CEO Paul Zahra said retailers are looking forward to capitalising on pent-up demand.
"The retail recovery is underway in NSW and the ACT, which emerged from lockdowns in recent weeks.
"We’re seeing a lot of pent-up demand in those locations with people getting back out and about, enjoying their freedoms.
"While the ABS figures are looking back at a lockdown month, retailers have got their sights firmly set on Christmas, which is a time when many discretionary retailers make up to two thirds of their profits.
"Our research in conjunction with Roy Morgan shows Australians are forecast to spend nearly $59 billion in the pre-Christmas sales period, which is in line with last year’s spend, but well up on pre-pandemic conditions.
"The overall trend is looking positive with retailers looking to cash in on the pent-up demand that exists across the economy," he said.