Australian retail spending has shown a modest but steady year-on-year increase, with new data from the Australian Bureau of Statistics (ABS) revealing a 4% rise in total retail sales for March 2025, reaching $37.3 billion.

All major retail categories posted annual gains, but the standout performer was the ‘other retailing’ segment, which includes electronics-adjacent categories such as sporting and recreational goods, cosmetics, and tech accessories – recording a significant 9% increase.

Clothing, footwear, and accessories followed with a 5% uptick, while department stores, food, and household goods each rose by 4%.

Spending in cafés, restaurants and takeaway services remained relatively flat, inching up only 1% year-on-year – a result industry leaders partly attribute to the altered timing of Easter holidays.

Despite the gains, both the Australian Retailers Association (ARA) and National Retail Association (NRA) caution that the underlying picture remains challenging, particularly for technology and appliance retailers who are still navigating post-Covid volatility, inflationary cost structures, and subdued consumer confidence.

“This is another solid result during a challenging economic period,” said Fleur Brown, Chief Industry Affairs Officer at the ARA. “While hospitality was hit by seasonal timing, the broader rise in spending is a welcome sign. Retailers, however, are still contending with tight household budgets, rising operating costs, and the absence of interest rate relief.”

For electronics retailers, who typically operate within the household goods and ‘other retailing’ categories, the results suggest modest momentum but far from a full recovery. Persistent inflation, high energy costs, and increasing insurance premiums continue to weigh heavily on profit margins.

NRA Interim CEO Lindsay Carroll added that recent natural disruptions, including cyclone warnings in Queensland and New South Wales, dented what could have been stronger results.

“Retailers, especially in tech and whitegoods, are seeing early signs of a rebound, but events like these highlight the sector’s vulnerability,” Carroll said. “We need better support mechanisms for businesses during extreme weather to safeguard sales and operational continuity.”

By state, Western Australia led the growth with a 6% year-on-year rise, followed by Victoria at 5% and New South Wales at 4%. Queensland, despite cyclone-related disruptions, still managed a 3% uptick.

The ARA and NRA, who are moving toward an amalgamation to form the Australian Retail Council (ARC), continue to advocate for greater policy support and structural relief, especially as the retail sector navigates a tech-heavy future and rising digitisation.

For now, March’s data offers cautious optimism, particularly for tech-adjacent retailers.