Australian retail sales grew 4.7% in April 2026. Given the timing of Easter, a combined March-April read is more relevant, which shows growth of 5.2%. This is still above long-term trends, and stronger in non-food and dining out. Despite rate hikes and a petrol price spike, consumers are still happy to spend.

What we’re hearing and seeing in retail

• Sales trends stabilising: The noise around Easter has made it difficult to gauge the impacts of higher interest rates and the Iran war. More recent feedback has been solid. Mother’s Day was decent.
• Cash flow for households still good: Spending is holding up because household cash flow is solid. Around 80% of mortgagees never lowered their mortgage payments when rates fell and have therefore been unaffected so far and 82% of all vehicles are unleaded petrol with petrol prices flat year on year.
• Trimmed mean inflation relatively benign for wages: Trimmed mean inflation of 3.4% for April could result in the Fair Work Commission deciding a FY27e wage increase towards the lower end of the 3.8%-4.3% range.

Sub-sector insights

• At-home food and liquor: At-home food & liquor sales only rose 1.8%. The timing of Easter had an impact with combined March-April up 2.8%. Aldi and independents are losing market share.
• Cafes, restaurants and takeaway food: Cafes & takeaway spending growth of 5.9% decelerated slightly from 6.4% in March. On a two-year stack basis growth accelerated from 8.0% to 12.8%.
• Household goods: Household goods rose 6.3% in April, an unexpected acceleration from March. JB Hi-Fi reported 3Q comparable sales of 2.6% with The Good Guys reporting 2.5% growth.
• Department stores: Department stores sales grew 5.5%. The combined March and April up 5.3% improved on the three months to February growth of 3.4%. David Jones announced sales growth for the nine months to 31 March up 3.6%.
• Clothing & footwear: Clothing & footwear growth of 7.0%, accelerated on March. The combined March and April growth of 6.1% grew ahead of the 4.5% category growth for the three months to February. Retail Apparel Group March quarter sales for Australia were -1.3%, while Universal Stores reported 8.8% for March and April.
• Other retailing incl pharmacy and recreational goods: Other retail rose 7.9% and had 9.1% growth in March-April combined. The strength in online pure play and pharmacy has been significant. The contribution of GLP-1 drugs could be as much as half of the circa 12% growth in pharmacy. Rebel comparable store sales were +1.4% for the first 17 weeks.
• Online spending: Kogan reported sales growth of 18.1% for the 10 months to April, up from 16.9% in 1H26. RBA device not present payments, a proxy for online sales accelerated to 12.5% in March from 8.2% in February.
• Consumer spending: Broader consumer spending rose 5.0% in April 2026. Discretionary spending increased 4.9% in April vs 5.0% growth in March 2026.