Sales in fashion across Australia have shown marginal growth in July 2024 in year-on-year terms, new Australian Bureau of Statistics data revealed.
Clothing, footwear and accessories sales were up just 0.5 per cent, with department stores up just 0.1 per cent.
This has added to a modest lift in overall retail sales of 2.3 per cent in July 2024 year-on-year, totalling $36.1 billion for the month.
The largest lift was noted in other retailing, which includes cosmetics, sports and recreational goods, with the category’s revenue up 5.5 per cent. This was followed by the staple category of food, up 3.2 per cent, with household goods up 1.5 per cent.
Cafes, restaurants and takeaway services declined year-on-year, down 0.3 per cent
Australian Retailers Association (ARA) CEO Paul Zahra said the pockets of marginal growth in discretionary categories in July were bolstered mainly by the continuation of mid-year sales.
"Last month, Australians continued to shop on price and value as we saw in the End of Financial Year Sales,” Zahra said. “Households continue to prioritise essentials like food but also focused on small personal luxuries – cosmetics, sports and recreational goods.
“As tough times continue, we are seeing the so-called ‘lipstick effect’ play out - where people are having to do more with less. There are trade-offs in this budget-conscious environment and in July we saw people replacing dining out with food from their local supermarket, allowing some spending on personal luxuries.”
Zahra said 2024 remains one of retail’s most difficult years, with a continued slowdown in discretionary spend, high business costs and inflation, all matched with ongoing challenges such as retail crime, supply chain disruptions, and “the most significant workplace relations reforms in decades.”
“Whilst there is great resilience within retail, we know there are many businesses in the sector especially small businesses,” Zahra said. “The ARA continues to call for a targeted government support for vulnerable retailers who contribute to the nation’s $420bn retail sector.
“Discretionary retailers will be counting on the peak season ahead to replenish their cash reserves. Major shopping events in coming months include Halloween, Black Friday and Cyber Monday and the festive period, which will hopefully provide a much-needed boost to the industry.”
Month-on-month, retail spending was relatively unchanged, falling by just $2 million in seasonally adjusted terms.
This followed growth of 0.5 per cent in June 2024 and 0.5 per cent in May 2024.
“After rises in the past two months boosted by mid-year sales activity, the higher level of retail turnover was maintained in July,” ABS head of retail statistics Ben Dorber said.
Clothing, footwear and personal accessory retailing had the largest fall month-on-month down 0.5 per cent, followed by department stores (down 0.4 per cent) and cafes, restaurants and takeaway food services (down 0.2 per cent).
Household goods retailing and other retailing were both unchanged.
“The fall in turnover for clothing and footwear retailers and department stores came after higher spending during recent mid-year sales events,” Dorber said. “Household goods retailers held onto large gains in turnover in recent months.
The only industry that had a rise in July was food retailing, up 0.2 per cent.
Retail turnover growth was mixed across the country with four states and territories seeing a rise while the remaining four fell.
“Western Australia continues to be the standout of the states and territories, having risen for the seventh consecutive month, up 4.6 per cent compared to July 2023,” Dorber said.