There was just a 0.4 per cent lift in total sales year-on-year for the clothing, footwear and accessories sector in Australia in February 2025.
This is the lowest rate of growth for February 2025 compared to the same month last year across the core retail categories, all according to new data from the Australian Bureau of Statistics (ABS).
Overall, fashion sales lifted from $3.08 billion in February 2024 to $3.09 billion in February 2025.
The slack lift for fashion is also below the total year-on-year sales lift for all retail of 3.6 per cent, or $1.3 billion, to $37.129 billion.
The key drivers for the overall increase was food retailing, which lifted by 4.08 per cent and other retailing – such as hairdressers and beauty businesses – which lifted 5.55 per cent.
Department stores had a modest lift of 3.23 per cent to $1.96 billion, with household goods lifting 2.89 per cent to $5.88 billion.
The slight lift for fashion year-on-year comes amid a growing number of fashion brands calling in administrators or liquidators. Most recently was the fall of Jeanswest, which is currently closing all 87 stores in Australia. Another is Ally Fashion, which is facing liquidation, with others including Tuchuzy, and the full Mosaic Brands portfolio which included Rivers, Noni B, Katies and Millers retailers.
While retail spending remains steady, cost-of-living pressures and economic uncertainty continues to impact consumer behaviour, Australian Retailers Association (ARA) chief industry affairs officer Fleur Brown said.
"While it is a disappointing result for clothing and accessories, with many retailers in that category under extreme pressure, it's encouraging to see another month of steady growth across most spending categories,” Brown said.
"We know household budgets remain tight, and retailers are operating in a highly competitive and volatile environment with rising business costs. Any signs of stability in consumer spending are a welcome boost to business confidence, but we remain far from a retail recovery.
"We continue to call on the federal government to offer improved support measures for the sector, particularly small business, which is a key driver of the nation’s economy.”
National Retail Association interim CEO Lindsay Carroll said the Valentine’s Day trade boost is welcome relief for many discretionary retailers who have been hardest hit by declining consumer sentiment over the last couple of years.
“Consumer sentiment is on the uptick, and February’s trading result is a reflection of that. Wages are up and inflation is down, so Aussies feel safer about spending.
“However, retailers are still struggling. Business insolvencies have shot up in the last couple of years, and the Federal Budget was a missed opportunity for the government to show the ailing sector a bit of love.
“We urge policymakers to focus on measures that boost investment and productivity, so that retailers, as the second largest employing sector in the nation, can continue to provide opportunities, job security, and sustainable growth for the economy.”
On a month-on-month basis, fashion sales lifted by 0.4 per cent or $12.8 million, driven by clothing retailing which lifted $15.7 million, and offset by a fall in footwear retailing of $3 million.
Department stores led month-on-month sales as a percentage, up 1.5 per cent, followed by food retailing up 0.6 per cent.
Cafes, restaurants and takeaway food services lifted by 0.2 per cent, while household goods fell 0.3 per cent. Other retailing saw the hardest impact, down 1 per cent.
ABS head of business statistics Robert Ewing it was a mixed result across the industries month-on-month in February.
“Like the January month, it was food-related spending which drove the rise in retail turnover this month,” Mr Ewing said.
“Following promotion-based growth across the December quarter, spending on household goods continued to moderate with lower discretionary spending to begin the year,” he added.
Retail turnover was up in most states and territories, led by Western Australia (up 0.8 per cent), which had its seventh straight monthly rise, and New South Wales (up 0.5 per cent).
Monthly turnover was down in Queensland and Tasmania in February 2025.