December 2024 Spending Uptick Reveals Holiday Boost
Aussies embraced Cyber Monday and Boxing Day sales along with festive spending in December, with the latest data from the Australian Bureau of Statistics (ABS) showing spending during the final month of the year was higher than in 2023.
Household goods saw the most significant increase, followed by ABS category 'Other retailing' - which includes cosmetics, sports and recreational goods. Clothing, footwear and accessories were up 5% on the same time last year, while spending at cafes, restaurants and takeaways increased 4.7%. Food increased 3.5% and spending at department stores rose 1.6%.
Australian Retailers Association (ARA) Chief Industry Affairs Officer Fleur Brown said that these figures are a welcome uptick for retailers after a challenging 2024.
"December is a crucial month for retail, with many discretionary retailers making up to two thirds of their profits during the peak season period. From household goods such as kitchen appliances and electrical garden tools, to on-trend fashion items and cosmetics, it's clear Australians rallied to the sales events and enjoyed splurging on gifts for their loved ones during the holidays. While these results are a relief for many, retailers continue to have a tough road ahead as they navigate a challenging landscape with pressures exacerbated by higher business costs, supply chain demands and the ongoing toll of retail crime.
"After many years of continued pressure, we are calling on the Federal Government to show support for the sector to ensure it can grow and thrive. We welcome the release of the Government's small business strategy and financial boost announced today. Inflation is currently sitting within the prescribed range of the RBA. We think the Reserve Bank should consider starting the year off with a rate cut when spending is slow to bolster struggling retailers."
