The Australian fashion retail market remained under pressure in August, hampered by weak home-grown demand. According to The Retail Score Fashion Index, comparable-store sales rose only 0.9% versus August 2025. Unit volumes edged up 0.2%, and transaction counts climbed a modest 0.4%. Across every channel, retailers boosted promotions and discounts to move winter stock after unusually warm weather swept much of the nation throughout the country during the same period in August.
Standalone stores outperform as online sales decline
Channel performance revealed a surprising reversal of recent trends. Standalone stores delivered a much-improved result, with like-for-like sales increasing by 2.1% compared with last year. However, this improvement was partly offset by a 0.5% decline in online sales—the first year-on-year fall recorded by the online channel in The Retail Score Fashion Index for several years. The department store channel also remained under pressure, with concession sales declining by 2.7%. Outlet sales were marginally lower, falling by 0.2%.
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A key factor driving these results is the relationship between prices and transaction volumes. In standalone stores, transactions rose a modest 0.2% on a like-for-like basis, but average prices climbed over 1.5%, contributing to sales growth of more than 2%. Conversely, online sales saw a 2.5% increase in transactions, but average prices fell 1.2% due to heavier discounting, outweighing the benefits of higher transactions. Concessions faced similar pressure, with a modest transaction decline and a 2.6% drop in average prices, significantly impacting revenue. As The Retail Score Fashion Index shows, price proves decisive in channel performance.
With the sector still achieving overall growth and strategically important store networks performing relatively well, retailers now turn their attention to the critical spring campaigns. Attention will now turn to the critical spring campaigns, with retailers hoping to build sales momentum ahead of what is expected to be a long, hot summer.
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