From kpmg.com: The KPMG Retail Health Index indicates a promising growth outlook for Australia’s retail sector, fueled by reduced wage pressures and increased consumer confidence following the recent cash rate cut.

Despite improved conditions, challenges such as low household savings, geopolitical uncertainty, and sustained cost pressures persist, influencing cautious consumer spending.

The report forecasts that while retail conditions may start to normalize by mid-2025, they will still fall short of pre-pandemic levels.