ASX retail shares outperform on Thursday amid a 'sales surge' in June

Retail sector heavyweights experienced strong share price gains today.

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The S&P/ASX All Ordinaries Index (ASX: XAO) closed lower on Thursday while consumer discretionary shares stormed higher.

The consumer discretionary sector was the second-best performer among the 11 market sectors on Thursday, behind technology.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) rose 1.11% while the S&P/ASX 200 Info Tech Index (ASX: XIJ) rose 1.34%.

Meanwhile, the ASX All Ords finished the session down 0.18% to 8,999 points.

Happy friends holding shopping bags in a shopping mall.

Image source: Getty Images

Retail sales 'surge' last month: ABS

Today, the Australian Bureau of Statistics reported a 'retail sales surge' last month.

The ABS said Australian retail turnover rose 1.2% in June 2025, according to seasonally adjusted figures.

This follows a 0.5% rise in May after a flat April 2025. 

Robert Ewing, ABS head of business statistics, said:

The strong June month rise in retail turnover was driven by discounts linked to sales and new product releases.

After steady growth throughout the year, mid-year sales events increased spending on discretionary items like furniture, electrical goods and clothing items.

The ABS said non-food related spending across all industries drove most of the rise in retail turnover.

Spending increased the most in household goods retailing (+2.3%) and other retailing (+1.9%).

Ewing said:

Consumers are targeting sales events with a focus on value for big ticket items like household furniture, bedding, electronic devices and TVs.

Turnover for electrical and gaming retailers was lifted further by the much-anticipated launch of the Nintendo Switch 2, which delivered record sales.

Spending increased in department stores (+1.9%) and clothing, footwear and personal accessory retailing (+1.5%) due to end-of-financial-year sales and winter clothing sales. 

ASX retail shares perform strongly on Thursday

Among the best-performing ASX retail shares on Thursday were several sector heavyweights.

Eagers Automotive Ltd (ASX: APE) shares rose 2.45%, Aristocrat Leisure Ltd (ASX: ALL) shares lifted 2.35%, JB Hi-Fi Ltd (ASX: JBH) shares rose 1.3%, Wesfarmers Ltd (ASX: WES) shares ascended 1.19%, and Harvey Norman Holdings Ltd (ASX: HVN) shares increased 1.05%.

Other strong performers included Peter Warren Automotive Holdings Ltd (ASX: PWR) shares, up 3.26%, and Mexican restaurant network Guzman Y Gomez Ltd (ASX: GYG) shares, up 3.11%.

ASX jewellery retail shares Michael Hill International Ltd (ASX: MHJ) and Lovisa Holdings Ltd (ASX: LOV) rose 2.5% and 2.15%, respectively.

The new retail figures follow better-than-expected inflation data for the June quarter released yesterday.

The data suggested the inflation beast is now contained in Australia.

This may have contributed to the surge in retail sales last month.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Wesfarmers. The Motley Fool Australia has positions in and has recommended Eagers Automotive Ltd and Harvey Norman. The Motley Fool Australia has recommended Jb Hi-Fi, Lovisa, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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