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In March 2025, Australian retail sales rose modestly by 0.3% month-on-month, slightly lower than the forecasted 0.4%. Yet, this rise is the third straight month of an increase in retail turnover. Retail sales, year-over-year, rose by 4.3% in March 2024.
Different performances in different industries were observed up to March 2025: food retailing and other retailing increased by 0.7%, whereas cafes, restaurants, and takeaway food services posted a rise of 0.3%. Household goods and department stores recorded declines of 0.5%. Queensland alone recorded a decline, as sales decreased by 0.4% due to the effects of Tropical Cyclone Alfred.
The retail scene is mirroring careful consumer spending despite the good news of softening inflation and interest rate reductions. While food consumption and dining out drove sales, household goods lagged after deep discounting at the end of 2024. Retail trade volumes were flat in the March quarter of 2025 overall, as it was a reflection that price rises, not higher sales, accounted for significantly for the rise.
