Based on the latest data from the Australian Bureau of Statistics, consumers are cautious with their spending, leading to challenging conditions for businesses.
Household spending in April was just 0.1% higher than the month before, while retail spending was actually 0.1% lower, according to the latest data from the Australian Bureau of Statistics.
This cautious spending behaviour is reflected in the household saving ratio, which has risen for three consecutive quarters. In June 2024, households saved an average of 2.4% of their income. That figure rose to 3.7% in September, 3.9% in December and 5.2% in March 2025.
Weak spending is a double-edged sword for businesses. On the one hand, it puts downward pressure on inflation; on the other hand, it means lower sales.
Here are five ways your business may be able to raise sales in the 2025-26 financial year:
- Improve your online presence. Ensure your website is up to date, mobile-friendly and easy to navigate.
- Invest in customer retention. It’s often cheaper to keep existing customers than win new ones – consider loyalty programs or personalised offers.
- Review your pricing strategy. Small adjustments or bundled deals may help you appeal to more cost-conscious consumers.
- Diversify your marketing. Use a mix of channels – like email, social media and local partnerships – to reach different audiences.
- Offer flexible payment options. Buy-now-pay-later services or extended terms may encourage spending during tighter economic times.