KPMG Retail Health Index

Slower GDP growth and global uncertainty – particularly around US trade policy – have dampened momentum. However, easing inflation and interest rate cuts are helping to stabilise demand.

E-commerce is expanding rapidly, with strong growth in online marketplaces, food and liquor, and department store categories.

Sentiment remains cautious but is improving. The Westpac–Melbourne Institute Index rose to 98.5 in August, its highest level in over three years.

The resilient labour market and improvements in income have continued to help restore confidence in the sector. 

While producer price growth has moderated, labour costs remain elevated. Wage growth is steady at 3.4% year-on-year, continuing to squeeze margins.

Tariff changes and global disruptions continue to affect supply chains and pricing strategies.