Retail Trade · Australia

Consumer Goods Retailing in Australia: Market Size, Businesses & Forecast 2026

The consumer goods retailing industry in Australia encompasses the sale of food, household items, clothing, and other consumer items to the public through physical and online storefronts. The industry is navigating an environment of cautious household consumption driven by ongoing cost-of-living pressures and a focus on promotional events. According to official figures from the Australian Bureau of Statistics, total retail turnover reached an all-time record of 160000 million AUD in the December quarter of 2025 (ABS Retail Trade 2026), while the 'other store-based retailing' sector alone registered sales income of 249100 million AUD during the 2024-25 financial year (ABS Australian Industry

Businesses · 2025
31k
Outlook
Growing
Competition
High, rising

Industry snapshot

Demand drivers
Cost of Living
Promotional Calendars
Wage and Input Costs
Omnichannel Integration
Relative importance, Claight qualitative assessment.
Market structure
fragmented
moderate
concentrated
Competitive intensity
high, rising
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Key public data points

Total December Quarter Retail Sales (2025)160,000 million AUD
Source: ABS Retail Trade 2026
Other Store-Based Retailing Sales Income (2025)249,100 million AUD
Source: ABS Australian Industry 2026
Retail Trade Operating Profit Before Tax (2025)38,800 million AUD
Source: ABS Australian Industry 2026
Other Store-Based Retailing Labor Costs (2025)38,990 million AUD
Source: ABS Australian Industry 2026
Other Store-Based Retailing Employment (2025)750,800 persons
Source: ABS Australian Industry 2026

Historical & forecast

Base year 2025. Each series is official through its own latest government-data year (shown in the legend on each chart), and years beyond that are Claight estimates. As of July 2026 the current year is still in progress (2026 annual data is not yet published), so the forecast runs to 2030.

Number of businesses
Base year 2025
Official data (2025) · ABS Counts of Australian Businesses (8165.0)Forecast
Latest year is official ABS; other years indexed to the ANZSIC division trend.
Forecast
2022
2023
2024
2025
2026
2027
2028
2029
2030
2025 base: 3642030 est: 396
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Industry Definition and Scope

What does the Consumer Goods Retailing in Australia industry cover?

The consumer goods retailing sector in Australia encompasses businesses primarily engaged in purchasing and reselling tangible goods directly to end consumers for personal or household use. The scope spans traditional store-based environments, specialized food and grocery providers, department stores, and purely digital non-store retailing platforms.

  • Classified under the official Australian and New Zealand Standard Industrial Classification (ANZSIC) framework.
  • Includes food retailing, household goods, clothing, footwear, and personal accessories.
  • Covers both multi-channel physical storefront networks and dedicated online-only ecommerce distributors.

Market Structure and Operators

Who operates in the industry and how is it structured?

The Australian consumer retailing environment features a highly concentrated grocery and supermarket segment contrasted against a more fragmented discretionary goods segment. Major national operators manage expansive logistics and storefront footprints that dictate domestic supply chain standards.

  • The supermarket and grocery landscape is highly concentrated, led by major corporate chains.
  • Discretionary categories like apparel, footwear, and homewares support a mix of specialized corporate groups and independent boutiques.
  • According to the Australian Bureau of Statistics, the 'other store-based retailing' segment employed 750,800 individuals at the end of June 2025.
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Demand Drivers

What drives demand in the industry?

Consumer spending patterns in Australia are heavily dependent on macroeconomic variables including disposable income levels, employment metrics, and prevailing interest rates. In recent periods, growth has been increasingly dictated by strategic promotional periods and a heightened household focus on essential vs. non-essential spending.

  • Household spending trends remain highly sensitive to cost-of-living pressures and inflationary impacts.
  • Promotional events such as Black Friday and Cyber Monday have significantly modified the peak trading calendar, accelerating discretionary sales volumes in November.
  • ABS data shows year-on-year retail turnover in January 2026 rose 5.0%, indicating highly cautious but resilient spending where value is prioritized.

Competitive Landscape and Notable Public Companies

Who are the notable companies in the industry?

Competition within the Australian market is intense, driven by price transparency, promotional calendars, and the operational scale of large public corporations. Major domestic companies continuously optimize their supply chains and multi-channel strategies to secure consumer loyalty.

  • Woolworths Group Limited and Coles Group Limited represent the dominant public entities within the food and daily essentials categories.
  • Wesfarmers Limited operates as a major conglomerate controlling prominent retail brands such as Kmart, Target, and Bunnings.
  • JB Hi-Fi Limited represents a major player in consumer electronics and home appliances, competing alongside department store operator Myer Holdings Limited.
  • Firms face rising competitive pressures on margins due to escalations in store rents, supply chain logistics, and employee wages.

Recent Trends and Outlook

What are the recent trends and outlook?

The sector is experiencing a structural pivot toward embedded omni-channel experiences, with physical stores frequently reimagined as interactive brand touchpoints or fulfillment centers. While total nominal revenue continues to reach record baselines, profitability has faced pressure from escalating input costs.

  • Total quarterly retail sales hit an all-time high of $160 billion AUD in the December quarter of 2025.
  • Total labor costs for the core 'other store-based retailing' sector rose to a record $38.99 billion AUD during the 2024-25 financial year.
  • Profit margins have experienced relative stagnation, with 'other store-based retailing' operating margins settling at 8.0% in 2024-25.
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Regulation and Compliance

How is the industry regulated?

Retail operators in Australia must comply with strict federal and state legislative frameworks designed to ensure fair trading, consumer protection, and equitable workplace standards. Regulatory oversight monitors anti-competitive behavior and mandates transparent pricing practices.

  • Compliance with the Australian Consumer Law (ACL) is mandatory, governing product safety, warranties, and deceptive marketing.
  • Labor operations are governed by Fair Work Ombudsman regulations and modern awards, dictating baseline minimum wages and employment conditions.
  • Industry groups such as the Australian Retail Council actively participate in regulatory submissions to manage rising operational costs.

Sources

Government, statistical and trade sources used for this Claight analysis.

  • ABS Retail Trade 2026 ·
  • ABS Australian Industry 2026 ·
  • Australian Retail Council 2026

Claight analysis of public industry data.