Australia Retail Market is Segmented by Product Category (Food and Beverage, Personal and Household Care, and More), by Retail Format (Supermarkets and Hypermarkets, Convenience Stores, and More), by Distribution Channel (Offline Retailing, Online Retailing, and More), by Payment Mode (Cards and EFTPOS, and More), and by State (New South Wales, Victoria, and More). The Market Forecasts are Provided in Terms of Value (USD).

Retail turnover in Australia has seen a continued year-on-year increase since 2005. In 2024, total retail revenue in the country was approximately 436.76 billion Australian dollars, an increase of over 10 billion Australian dollars from the previous year. Australia's key retail segments The Australian food retail industry saw steady year-on-year growth over the same period, with annual food retail turnover reaching over 173 billion Australian dollars in 2024. The country's second-largest retail segment, household goods, also showed overall strong performance, recognizing annual revenue of approximately 70.4 billion Australian dollars that same year. Department stores remain the smallest segment of the country's retail industry, with the annual revenue of department stores showing slow growth compared to other segments. The online retail boom Accelerated by the COVID-19 pandemic, online shopping plays a major part in the everyday lives of consumers across Australia. Predominantly, Australians spend the most online on online marketplace goods and homewares. In 2025, products in the homeware and appliances category accounted for 19.1 percent of all online spending, and groceries and liquor for almost 15 percent. Amazon was the leading online retailer purchased from among online shoppers in Australia in the 12 months to July 2024, followed by eBay, Kmart, and Woolworths.

At the end of financial year 2024, there were over 156,930 businesses operating in the retail trade industry across Australia. This represented an overall increase of over 23,290 retail trade businesses across the country since 2017.

Key information about Australia Retail Sales Growth

• Australia Retail Sales grew 4.2 % YoY in May 2023, compared with a 4.3 % increase in the previous month.
• Australia Retail Sales Growth YoY data is updated monthly, available from Apr 1983 to May 2023, with an average growth rate of 5.6 %.
• The data reached an all-time high of 24.6 % in Apr 2021 and a record low of -8.8 % in Apr 2020.
• In the latest reports, Car Sales of Australia recorded 105,694.0 units in May 2023, representing a growth of 12.0 %.

The Department Stores industry has suffered from reduced foot traffic and the growing threat from online-only retailers, which is why industry revenue has been declining. Wavering consumer sentiment and shifts in discretionary income are causing consumers to pivot their spending towards lower-priced online sellers. Rising internet connectivity and consumer reliance on smartphones have propelled online shopping activity and industry competition. Yet, these headwinds have yielded some positive results, like a push to revise legacy systems and strategies and become more digitally driven retailers. Industry revenue has modestly contracted by an annualised 0.8% over the five years through 2024-25, to $22.1 billion. This trend also includes a 3.6% downturn in revenue in 2024-25. Despite a bounce-back in tourism, cost-of-living pressures are poised to intensify, encouraging consumers to cut back on discretionary spending. The industry is highly concentrated, with the four heavyweights accounting for the bulk of industry demand, meaning internal competition is intense. This factor has prompted price wars and aggressive discounting strategies, especially among low- to mid-market department stores like Kmart, to win over customers. Speciality retailers in sectors like apparel, homewares, electronics and cosmetics have dealt with their own demand woes, spurring reformation in their sales strategies, for example by expanding their digital and customer service capabilities. In doing so, these retailers have increasingly stolen market share from department stores. Mounting competition has encouraged department store chains to rationalise their networks, which is why establishments have been trending downwards and profitability upwards. The Department Stores industry is set to shrink at a faster rate through 2029-30, as the results of rationalising strategies and a heavier focus on digital transformation come into effect. Online-only sellers, like Amazon, will continue expanding their offerings and after-sale services, raising competitive pressures. Improving consumer sentiment and rising discretionary income are set to offer some reprieve in demand for up-market department stores, but gains will be cut short by commonplace bargain-hunting habits. In turn, more department stores will focus on shrinking floor space, rationalising merchandise and enhancing online operations to maintain low prices favoured by consumers. The industry is projected to decline at an annualised 2.3% through 2029-30, to $19.6 billion.

Retail Sales in Australia increased 3.30 percent in May of 2025 over the same month in the previous year. This dataset provides - Australia Retail Sales YoY - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Australia Employment: Retail Trade data was reported at 1,360.959 Person th in Feb 2025. This records an increase from the previous number of 1,359.691 Person th for Nov 2024. Australia Employment: Retail Trade data is updated quarterly, averaging 1,143.679 Person th from Nov 1984 (Median) to Feb 2025, with 162 observations. The data reached an all-time high of 1,375.208 Person th in Feb 2023 and a record low of 685.385 Person th in Feb 1985. Australia Employment: Retail Trade data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.G021: Employment: by Industry.

Online shopping has become a way of life. Once considered a novelty, much like the internet itself, the online shopping phenomenon has surpassed business and consumer expectations. It has evolved and expanded rapidly, with escalating internet and broadband uptake and changing consumer attitudes helping online shopping become a mainstream retail avenue. Greater investment in online platforms to advance website navigation, enhance security and improve delivery is fuelling a shift in consumer buying habits towards online shopping. The pandemic brought retail trading in Australia to a standstill, with lockdown periods and restrictions leading to a surge in online shopping sales. As consumers jumped online at breakneck speed, the online market was flooded with new entrants and businesses ramped up their digital sales capabilities to keep up with demand. Despite the hype and surge in sales, challenging trading conditions in the post-pandemic environment have eroded some of the earlier gains. Strong inflation and rising interest rates have combined to create a cost-of-living crisis, with consumers reassessing their online spending habits in the face of tightening purse strings. Nonetheless, revenue is anticipated to have grown at an annualised 7.4% over the five years through 2024-25 and is expected to total $58.0 billion in the current year, when revenue is set to climb by an estimated 5.2%. Going forwards, online shopping revenue is forecast to climb at an annualised 6.5% through the end of 2029-30 to total a projected $79.4 billion, aided by continued consumer demand. Greater digital connectivity will allow consumers to shop anywhere and anytime, with advances in augmented reality opening new doors for online retailers. Strong revenue prospects will entice more bricks-and-mortar retailers to launch online stores to complement their physical store network, while many online retailers will open shopfronts and flagship stores, blurring the lines between the two. Escalating competition, particularly from international low-cost retailers like Temu and Shein, will limit growth in profitability.

Australian Retail Market size was valued at USD 245 Billion in 2024 and is projected to reach USD 375 Billion by 2032, growing at a CAGR of 4.2% from 2025 to 2032.

Australian Retail Market: Definition/Overview

The Australian retail market is defined as the sector encompassing all business-to-consumer (B2C) sales of goods and services through various channels including physical stores, online platforms, and omnichannel retail formats. The market structure is characterized by a mix of large retail chains, independent retailers, and emerging digital platforms.

Furthermore, the retail landscape is shaped by factors such as urbanization, digital transformation, and changing consumer behavior patterns. The integration of technologies such as artificial intelligence, data analytics, and automated checkout systems is implemented to enhance customer experience.

The Australian retail industry, boasting a substantial market size (estimated at $350 billion AUD in 2025), is experiencing steady growth, projected at a CAGR of 5% from 2025 to 2033. This growth is fueled by several key drivers. Rising disposable incomes and a burgeoning population contribute significantly to increased consumer spending. The strong adoption of e-commerce, driven by technological advancements and improved internet penetration, continues to reshape the retail landscape, offering both opportunities and challenges to traditional brick-and-mortar stores. Shifts in consumer preferences towards sustainable and ethically sourced products are also influencing retailer strategies, with increased demand for transparency and responsible sourcing. Competition remains fierce, particularly amongst major players like Coles Group, Woolworths Group Ltd, and Wesfarmers Ltd, leading to innovative strategies such as loyalty programs and personalized shopping experiences. While the industry benefits from a strong domestic market, global economic uncertainties and potential inflationary pressures present ongoing restraints to growth. The industry's segmentation, encompassing food and beverages, personal care, apparel, electronics and more, offers diverse investment and growth opportunities, with online channels rapidly gaining market share. The segments within the Australian retail market demonstrate varied growth trajectories. Food and beverage retail, a cornerstone of the industry, consistently maintains high sales volume, driven by essential consumption patterns. The apparel, footwear, and accessories segment, while subject to fashion trends and seasonal fluctuations, benefits from the increasing focus on personal style and expression. The electronics and household appliances segment experiences cycles of innovation and upgrades, generating consistent demand. The expansion of online channels is transforming the distribution landscape, with online retailers like Kogan.com Ltd increasingly challenging established players. The successful integration of online and offline channels (Omnichannel strategy) will be key for retailers to navigate this evolving market. Geographic variations in consumer behavior and economic conditions also play a role, impacting regional performance within the country. Continued investment in supply chain efficiency and technology adoption will be crucial for sustainable growth within this dynamic industry. Recent developments include: In November 2020, Wesfarmers retail businesses continued to expand their business. Kmart opened new stores in Camberwell and Casey in Victoria and Cockburn in Western Australia, all converted from Target stores, alongside its newest K Hub store in Bairnsdale in regional Victoria.. Notable trends are: Demand for Food and Beverages Continues to be Strong Despite the COVID-19 Challenges.

As of March 2025, the gross operating profit of businesses in the retail trade industry in Australia amounted to approximately 6.83 billion Australian dollars. The highest gross operating profit of retail trade businesses was recorded in December 2020.

The Clothing Retailing industry is susceptible to consumer spending patterns, which is why the digital revolution and inflationary pressures have beset its performance over recent years. The pandemic forced most retailers to shut down temporarily, eroding instore sales and fast-tracking their transition into the digital space. Clothing retailers have continued to merge the physical and online sectors as part of their multichannel agendas, developing websites and mobile apps, accompanied by increased expenditure in digital marketing, to boost the number of customer touchpoints. This trend enabled retailers to capitalise on the pandemic-driven online shopping boom. Retailers benefited from higher profitability as pandemic restrictions eased, with revenge spending and soaring inflation boosting earnings. However, the cost-of-living crisis has led consumers to pare back their expenditure over the two years through 2024-25, restricting their outlay on non-essentials like clothes or prompting them to choose more cost-effective options online. Overall, revenue is expected to have grown at an annualised 2.6% over the five years through 2024-25 to $28.1 billion. This includes an anticipated 8.3% fall in 2024-25 as consumer pessimism compels shoppers to save more and spend less. Clothing retailers have faced fierce competition from online-only sellers, major international brands and department stores. At the same time, customer behaviour has trended towards a hybrid shopping process, as some shoppers have browsed clothing online from the comfort of their homes before making a purchase instore. The reverse is also true – some consumers try out apparel instore and then wait for sales online. Volatile consumer sentiment has encouraged some shoppers to reduce spending on discretionary items like clothing. Increased disposable income from government stimulus during the pandemic initially insulated against financial pressures. However, high inflation has since made consumers more frugal, heightening the industry's revenue volatility. Despite these negatives, an stronger Australian dollar is set to ease input costs over the past five years, translating into higher industry profitability. Looking ahead, improving consumer sentiment and disposable incomes will support higher clothing sales. However, competition from pure-play online retailers like Shein is set to intensify. In turn, retailers will need to develop robust multichannel retailing strategies and position themselves in niche markets to flourish in an increasingly competitive environment. Industry revenue is forecast to inch upwards at an annualised 0.3% over the five years through 2029-30 to $28.7 billion.

Supermarkets and grocery store outcomes have been a tale of dealing with volatile prices at their purchase and sales points. The continued expansion of Aldi and Amazon has forced the two established industry giants, Woolworths and Coles, to remain price-competitive on both the physical store and online service fronts. To differentiate themselves from low-cost supermarkets, Coles and Woolworths have leant into attracting customers with convenient locations and expanded online shopping capabilities. These supermarket giants also rely on loyalty programs and promotions. Coles and Woolworths have displayed interest in data analytics, strengthening their relationships with analytics firms like Palantir to optimise their marketing and operational processes. The ACCC and Treasury have taken the lead on addressing supplier and customer concerns relating to deceptive discounting practices and supplier contract bargaining exploitation. Supermarket and grocer revenue rose significantly following the COVID-19 outbreak. Household expenditure shifted towards retail industries amid restrictions on many services industries, with this imbalance remaining as high costs limit eating out. A combination of panic buying, along with the suspension of many specials and promotions in supermarkets, boosted grocery turnover at the beginning of the period, spiking revenue for 2019-20. This high benchmark at the start of the period has resulted in an industry correction and an annualised revenue decline of 0.6% to $148.7 billion over the five years to 2024-25. However, stores have largely managed to pass on upstream costs to customers, steadying their profit margins while suppliers and consumers bear the brunt of inflation-driven costs. Revenue is estimated to climb by 0.2% in 2024-25, reflecting the price-driven industry growth more indicative of the overall revenue trend that was drowned out by the pandemic revenue spike and correction. Supermarkets and grocery stores are set to continue performing well with industry revenue slated to climb at an annualised 0.4% over the five years through 2029-30 to $142.8 billion. Population growth and stubborn inflationary pressures, despite rate hikes, are set to keep store prices inching upwards. The results of the Treasury and the ACCC's investigations will shine a light on new regulations and potential penalties in store for large supermarkets. Eventually, when inflationary pressures subside and consumer sentiment returns to a positive level, supermarkets and grocers will be well-positioned to take advantage of consumer appetite for value-added and premium goods. Strong growth in online sales is set to continue.

Houseware retailers have come up against tough trading conditions over the past five years. Pandemic-induced lockdowns led to an early surge in houseware sales, with the increased time consumers spent at home sparking renewed interest in cooking and baking. Yet the pandemic had a dual effect, with restrictions and a backlog in building material availability leading to a slump in residential construction activity. With fewer new homes needing housewares, retailers had to rely largely on the replacement market to post a sale. Post-pandemic, the trading environment for houseware retailers has remained volatile. Strong inflation and rising interest rates have been eroding consumers’ willingness to spend on non-essential goods like housewares. As a result, industry revenue is expected to have dropped at an annualised 1.0% over the past five years to $2.2 billion in 2024-25, when revenue is anticipated to sink 6.4%. Competition across the housewares market has heated up over the past five years, with the entry of more retailers driving an upswing in enterprise numbers. Houseware retailers have also felt the pinch from supermarkets and department stores adding budget housewares to their traditional product mix, encroaching on the housewares market. Online shopping has also become increasingly prevalent, and this has compelled houseware retailers to invest more in their ecommerce platforms, including websites and mobile apps, to enhance their online performance and boost sales. Going forwards, a resurgence in residential building construction activity is set to ignite demand for housewares from new homeowners. Improving economic conditions will bring about a hike in the population, fuelling an upturn in household numbers and higher average weekly earnings. Consumers will have greater discretionary income, and continued recoveries in consumer sentiment will fuel a healthier spending appetite. Revenue across the Houseware Retailing industry is forecast to grow at an annualised 1.1% over the five years through 2029-30 to total $2.4 billion. Yet it won't be all smooth sailing, with escalating competition set to lead to a weak climb in industry profitability.

The Australian Retail Bags Market is Segmented by Material (Paper and Natural Fabric and Plastic (HDPE, LDPE, PP, RPET, Etc. )) and End-User Industry (Foodservice, Grocery, Industrial, Hospitality, and Other End-User Industries). The Report Offers Market Forecasts and Size in Value (USD) for all the Above Segments.

In May 2025, the monthly online retail revenue generated in Australia amounted to just over 4.49 billion Australian dollars. This surpassed the previous peak of around 4.52 billion Australian dollars in online retail revenue recorded in April 2025. Online retailing in Australia To draw customers back into physical stores after the COVID-19 pandemic, Australian retailers are placing a strong emphasis on creating seamless shopping experiences that combine online and in-store channels. Nevertheless, online shopping remains a crucial element of the retail sector in Australia. In February 2025, Australia's online retail spending increased for both domestic and international merchants across all categories when compared to the previous year. Several Australian households made weekly online purchases, indicating the rising reliance on e-commerce in daily life. According to around 68 percent of Australian participants in a 2024 survey, convenience was the primary reason for their online purchases. Australia’s leading e-commerce platforms The e-commerce market in Australia is shaped by both global giants and well-known local companies that cater to a wide variety of customer needs. In the year preceding July 2024, a survey revealed that Australian customers' preferred online retailer or marketplace was the U.S.-based marketplace Amazon, from which around 54 percent of participants had made purchases. Australian retailers Kmart and Woolworths came in joint third after eBay, drawing in 40 percent of online buyers, respectively. Chinese online platform Temu has also seen a rise in popularity in recent years due to its heavily discounted products, with the Temu shopping app being Australia's most downloaded online marketplace app in 2024.

The past few years have seen significant changes in the electricity retail market. Deregulation has intensified competition from new, smaller retailers, which has limited pricing power and profitability for traditional industry giants. Despite the implementation of price caps, like the Default Market Offer (DMO) and the Victorian Default Offer (VDO) that improved price transparency for consumers, retailers faced challenges with escalating wholesale supply costs driven by high gas and coal prices, extreme weather events and fluctuations in demand. While some retailers were able to offset these costs by benefiting from high wholesale prices, non-integrated retailers suffered significant profit margin losses. Government interventions have sought to control retail prices and provide relief for households and small businesses facing rising costs. The increasing adoption of rooftop solar panels presented challenges for retailers in maintaining demand. However, solar panel adoption rates have plateaued as subsidisation has declined, offering relief for retailers. Overall, revenue is expected to climb at an annualised 1.5% over the five years through 2024-25, including an anticipated 0.8% hike in the current year, to total $50.4 billion. The short-term forecast for electricity retailers shows a potential for increased revenue, based on regulatory changes to the DMO and VDO. These provisions are set to cause a rise in prices for consumers, particularly small businesses, increasing cost pressures in 2025-26. Over the medium term, overall electricity demand is forecast to swell because of factors like higher electrification, electric vehicle usage and increased hydrogen fuel production. Although industry revenue is projected to dip through 2029-30, promising demand trends, driven by population and household growth, will alleviate some of the impacts of revenue declines, signifying a complex yet optimistic outlook for electricity retailers. Revenue is forecast to marginally decline at an annualised 1.0% through the end of 2029-30, to total $48.0 billion.

Times have been tough for discount variety stores. Mounting external competition from discount department stores, supermarkets and online-only retailers has strained discount variety stores’ revenue. These retail giants not only offer a diverse selection of quality goods but also leverage loyalty reward schemes to entice consumers, which narrows the gap between them and traditional discount variety stores. Even so, the industry’s profitability has recently climbed on the back of a changing product mix. Overall, revenue is expected to have dropped at an annualised 2.6% over the five years through 2024-25, to $2.3 billion. This trend includes an anticipated 1.6% uptick in 2024-25. Discount variety stores have navigated challenging terrain marked by intensified competition from growing supermarket and department store chains and online retailers. The expansion of global giants like Costco has generated significant pressure. Online shopping has emerged as a formidable competitor, attracting customers with niche products and minimal shipping fees. To counter this, traditional discount variety stores have enhanced their online platforms, an effort that has been somewhat successful in maintaining competitiveness. Industry revenue is forecast to edge upwards at an annualised 1.5% over the five years through 2029-30, to $2.4 billion. The continued push for online shopping is poised to erode bricks-and-mortar discount variety stores’ customer base, aligning with consumers’ preferences for seamless online shopping experiences. Superstores like Aldi and Costco, backed by powerful buying capabilities and appealing product ranges, will likely expand and claim further market share. Discount department stores like Kmart will also continue to capture consumers, fuelling competition.

The Womenswear Stores industry has endured fluctuating conditions in recent years, marked by volatile consumer sentiment and stiff competition. Consumer spending has been careful when it comes to non-essential items and they’ve preferred to save in the face of economic uncertainty. During the pandemic, competition from online-only retailers intensified on both domestic and international fronts as customers turned to online shopping because of stay-at-home orders. This shift in shopping behaviours resulted in a large portion of demand being diverted from physical womenswear stores to online retailers. However, a concentrated investment into digital channels buoyed online sales for many industry retailers, particularly the larger players. Industry revenue is anticipated to increase at an annualised 2.9% over the five years through 2024-25, to $12.3 billion. This includes a 0.9% bump expected in the current year, thanks to rising household disposable income. The pandemic impacted the retail sector in both positive and negative ways. Government restrictions forced many physical stores to pivot to online retailing and lose out on instore sales. However, these stores capitalised on a pandemic-induced online shopping boom. Pent-up demand and increased operating efficiencies through ecommerce have helped lift retailers’ profit margins. High consumer spending out of lockdowns also benefited womenswear stores’ earnings, but this trend has since run its course. High inflation and rising interest rates have hindered consumer purchasing power and sentiment, encouraging many to save or opt for lower priced alternatives online. The Womenswear Stores industry is set to expand over the coming years. A strengthening economy, increased household disposable income and improved consumer sentiment will underscore this growth. However, competition from online-only retailers and international operators is set to heat up, potentially cutting the industry’s revenue growth short. Revenue is forecast to increase at an annualised 2.4% through the end of 2029-30, reaching $13.9 billion.

The Australia retail bags market size reached USD 573.02 Million in 2024. The market is expected to grow at a CAGR of 5.05% between 2025 and 2034, reaching almost USD 937.84 Million by 2034.