Australian retail sales rose 2.1% in June 2024 year-on-year. This continues recent weak trends, even though some of our feedback has been stronger over the past two months. The data does reveal smaller retailers are doing it tougher. There was a significant pick-up in fashion and department stores, modest pick-up in electronics with a slowdown in dining out and liquor. For FY24e, retail sales only rose 1.8%. We expect an acceleration to 2.9% for FY25e. The acceleration is likely to be modest given low household savings and dis-inflation for retail goods.