Australian fashion sales experienced a decline in December 2024, with retail sales of clothing, footwear, and accessories dropping by 1.8% compared to the previous month. The Australian Bureau of Statistics (ABS) reported a total sales decrease of $55 million, with clothing retailing down by $39 million and footwear and other personal accessories retailing down by $15.9 million.
Despite the monthly setback, fashion sales showed a 5% increase from December 2023 to December 2024. This growth followed a significant drop in fashion sales between November 2023 and December 2023, amounting to $142 million. Department store sales, however, saw a slight improvement, rising by 0.4% month-on-month and 1.6% year-on-year.
Among the six core retail categories, household goods recorded the most substantial year-on-year increase of 7% and a monthly rise of 1.6%. Overall retail sales in Australia, including food and dining, contracted by 0.1% month-on-month but increased by 4.6% year-on-year.
The ABS noted that retail spending remained steady after a surge in recent months, with promotional activities spread across the quarter. Notably, Cyber Monday in early December boosted spending on discretionary items like furniture, homewares, electronics, and electrical goods.
While fashion retail experienced the largest monthly decline, other retail sectors, including beauty and hairdressing, also saw a 1.4% drop in sales. Fleur Brown from the Australian Retailers Association (ARA) highlighted the importance of December sales for retailers, emphasizing that many rely heavily on this period for profits.
Lindsay Carroll, the interim CEO of the National Retail Association (NRA), viewed the positive December sales as a sign of improving consumer sentiment. Carroll stressed the significance of discounts and urged the Reserve Bank of Australia to consider a rate cut to stimulate spending in the face of ongoing conservative consumer habits.
In addition to sales figures, the ABS reported a 1.0% increase in retail sales volumes for the December quarter of 2024, following growth in the September quarter and a decline in the June quarter. This rise in sales volumes coincided with continuous promotional events like Black Friday and Cyber Monday, driving discretionary spending on various products.
ABS head of business statistics, Robert Ewing, noted that retail sales volumes per capita rose for the first time since June quarter 2022, aligning with a slowdown in retail price growth and cost-of-living relief measures. Retail price growth also moderated in the quarter, indicating a potential shift in consumer spending patterns.
Overall, the retail landscape in Australia reflects a mix of challenges and opportunities, with industry associations advocating for support measures to sustain growth and address the evolving consumer behavior in the market.
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