business
Challenges and Headwinds Facing Perth Retail Sector This Year
Independent stores in the city face online competition and rising costs that have cut sales sharply since January.
How we reported this
Perth retailers recorded an 18 percent drop in sales through June compared with the same period in 2025, according to figures released by the Retail Traders Association of Western Australia on 10 July.
The decline arrives as import platforms undercut local prices and household budgets tighten after two interest-rate rises this year. Shop owners now watch weekly takings against fixed costs that include rents on St Georges Terrace and wages tied to the state award.
Online platforms cut into city trade
Design theft complaints from artists have spotlighted how fast overseas sites reach Australian buyers. In Perth the effect shows up along Hay Street Mall, where several fashion and gift stores reported stock sitting longer on shelves. One owner on Murray Street noted that customers now compare prices on their phones inside the shop before walking out. City of Perth data shows foot traffic in the central mall fell 9 percent year on year for the March to June quarter.
Local programs such as the Leederville Business Collective have tried to counter the trend with joint marketing campaigns, yet members say the reach of global platforms still dominates search results. Several stores have trimmed opening hours to cut power and staffing costs.
Cost pressures add to the squeeze
Insurance premiums for small premises rose an average 14 percent in the past twelve months, while electricity bills for air-conditioned shops climbed after the state tariff adjustment on 1 July. A Subiaco clothing retailer said the combined increases equalled one full month of previous profit. The City of Perth small-business rate relief scheme, expanded in March, offers only partial offset for properties valued under $1.5 million.
Retailers who spoke with the association expect the pressure to continue through the spring sales period. Some are reviewing supplier contracts and shifting more stock to local makers to shorten delivery times and reduce freight charges. Others plan to test shorter lease terms when current agreements expire at the end of the financial year.