Shoppers spending at supermarkets help lift retail | Australian Markets

Retail gross sales have posted a modest lift for a third-straight month, boosted by food-related spending in supermarkets and grocery shops.

The 0.3 per cent lift in March was simply shy of the consensus forecast for a rise of 0.4 per cent and follows small will increase recorded earlier this 12 months, in response to Australian Bureau of Statistics knowledge launched on Friday.

ABS head of business statistics Robert Ewing mentioned retail spending continued to lift at a regular tempo, with food-related spending in supermarkets and grocery shops the primary driver of growth. Food-related spending grew 0.7 per cent.

“Supermarket and grocery store sales were especially strong in Queensland where households stockpiled essentials in anticipation of ex-tropical cyclone Alfred,” he mentioned.

But the pre-cautionary spending in supermarkets wasn’t enough to offset different impacts of the weather-related disruptions, together with short-term business closures for a lot of retailers, significantly cafes and eating places.

Retail turnover rose in all States and Territories, apart from Queensland, which fell 0.4 per cent. The Northern Territory posted the most important lift over the month, up 0.7 per cent. It was adopted by Victoria and the ACT, each up 0.6 per cent.

In WA, gross sales grew 0.3 per cent.

Oxford Economics Australia head of macroeconomic forecasting Sean Langcake mentioned retail gross sales quantity during the primary three months of 2025 was flat. He mentioned this mirrored a “payback following a very strong Q4 where spending was boosted by more discounting activity than usual”.

“The fundamentals for consumption growth remain healthy, with the labour market in a tight position and inflation continuing to trend lower,” Mr Langcake mentioned.

“Moreover, interest rate cuts and greater government support through election promises will keep some momentum in consumer spending.

“However, the hit to confidence and heightened uncertainty generated by tariff announcements will hold spending back in the coming months.”

UBS economist George Tharenou mentioned retail gross sales momentum over latest months was nonetheless recovering, albeit solely comparatively modestly.

The retail knowledge got here the identical week grocery giants Coles and Woolworths revealed respective 3.4 per cent and three.2 per cent will increase in group income over the March quarter.

In good news for cost-conscious Australians, the pair reported deflation on non-food classes — like cleansing, health and wonder — in addition to long-life classes corresponding to pantry, snacking, freezer and on a regular basis wants.

Westpac on Friday mentioned whereas shopper sentiment had come out of the “dark cost of living hole” it was in by most of 2023 and 2024, it was nonetheless firmly pessimistic.

“With risk aversion also elevated, the mood points to consumers remaining very conservative even as their financial situation improves,” it mentioned.