Australian department stores and household goods retailers were among the biggest winners in June as end-of-financial-year (EOFY) sales lifted national retail turnover by 4.9% year-on-year.

Department store spending climbed 5.9% to $1.99 billion, while household goods retailing – including furniture and appliances – rose 5.6% to $6.13 billion, according to data from the Australian Bureau of Statistics (ABS).

The EOFY sales period also drove strong growth in other categories, with “other retailing” (including sports, cosmetics and recreational goods) jumping 6.9%, and clothing, footwear and accessories up 6%.

In total, Australians spent $37.91 billion in June 2025, up from $36.15 billion in June 2024.

Australian Retailers Association (ARA) CEO Chris Rodwell said the results signal cautious optimism in consumer behaviour.

“This is the highest monthly growth we’ve seen across the past year, compared to 2024 spending, which is a promising result during a period of challenging trading conditions,” said Rodwell.

“However, it’s important to call out that while retail sales have lifted, this doesn’t necessarily translate to a better operating position for retailers as EOFY discounts are more prominent in June.”

Rodwell stressed the importance of policy support, urging the Reserve Bank of Australia (RBA) to consider interest rate cuts following improved inflation figures, and calling on the Federal Government to streamline regulations and tackle rising retail crime – estimated to cost the sector $9 billion annually.

State-by-state, Victoria led growth with a 5.75% increase in spending, followed by Queensland (5.46%) and Western Australia (5.31%).

Tasmania (2.31%) and the ACT (2.7%) posted more modest gains.

While June’s figures offer a welcome boost for the $430 billion retail sector, Rodwell warned that sustained growth depends on economic stimulus and regulatory reform.

“Our small retailers are especially vulnerable to the protracted economic recovery and have borne the brunt of these ongoing challenges,” said Rodwell. “As the backbone of the Australian economy, their recovery must be a priority for policymakers.”

With the crucial holiday season ahead, retailers will be watching closely for further signs of consumer confidence and potential interest rate relief