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 latest results from The Retail Score Fashion Index show that Australia’s fashion retail sector continued to face challenging conditions in August, weighed down by fragile domestic demand.
On a like-for-like basis, sales increased by just 0.9% compared with August 2025. Sales units rose by only 0.2%, while transaction volumes grew by a modest 0.4%.
|
August 2026 |
Var % vs LY |
|
Sales |
0.9% |
|
Sales units |
0.2% |
|
Transactions |
0.4% |
Standalone stores outperform as online sales decline
Channel performance revealed a surprising reversal of recent trends.
Standalone stores delivered a much-improved result, with like-for-like sales increasing by 2.1% compared with last year.
However, this improvement was partly offset by a 0.5% decline in online sales—the first year-on-year fall recorded by the online channel in The Retail Score Fashion Index for several years.
The department store channel also remained under pressure, with concession sales declining by 2.7%. Outlet sales were marginally lower, falling by 0.2%.
|
Channel |
Sales Var % vs LY |
|
Concession |
-2.7% |
|
Online |
-0.5% |
|
Outlet |
-0.2% |
|
Standalone |
2.1% |
Promotional activity and discounting increased significantly across all channels as retailers sought to clear winter inventory following unusually warm temperatures across much of Australia.
Price proves decisive in channel performance
What explains the significant variation between standalone stores, online and concessions?
A closer examination of the data points to one clear factor: the relationship between selling prices and transaction volumes.
Transaction volumes in Standalone stores increased by a modest 0.2% on a like-for-like basis, but average selling prices rose by more than 1.5%. Fashion retailers were able to achieve price growth in this channel, which—combined with a small increase in transactions—helped deliver sales growth of more than 2%.
Online produced the opposite result. Transaction volumes increased by a comparatively healthy 2.5%, but average selling prices declined by 1.2% as heavier discounting flowed through to final sale prices. The reduction in selling prices was enough to outweigh the benefit of higher transaction volumes.
Concessions experienced a similar dynamic. A modest decline in transactions, combined with a 2.6% fall in average selling prices, placed significant pressure on topline revenue.
Fashion retailers will be encouraged that the sector still achieved overall growth and, in particular, that their strategically important store networks performed relatively well while other channels struggled.
Attention will now turn to the critical spring campaigns, with retailers hoping to build sales momentum ahead of what is expected to be a long, hot summer.