Australian retailers are set to enter the new year on a high note.
Shoppers are expected to spend $15.1 billion during post-Christmas sales through to mid-January, according to new research.
Australian Retailers Association (ARA) and research partner Roy Morgan Research predict the figure will be an estimated two per cent rise on last year.
ARA executive director Russell Zimmerman said last year’s forecast was almost spot-on.
Sales for the period came in at $14.6 billion, only slightly lower than the $14.8 billion predicted.
“Based on the actual figure of 14.6 billion, we now see an even larger percentage growth year on year at 3.8 percent – a positive sign for the retail sector," he said.
“Looking at the actual post-Christmas sales figures for 2012 and this year’s post Christmas predictions, cafes show the highest level of growth at 6.2 percent.
"Apparel (3.9 percent) and food (3.8 percent) are also set to experience a small but significant jump in post-Christmas sales, indicating that gift buying will be replaced by shoppers splurging on items for themselves, updating their summer wardrobes and dining out.
“It is also great to see all states and territories predicted to experience positive growth this post-Christmas period, ranging from two percent (Western Australia) to 6.1 percent (Northern Territory)."
Zimmermann said a decision to leave the cash rate unchanged at 2.5 per cent in December is "definitely an obstacle" for retailers.
The Reserve Bank of Australia will reassess the outlook when it meets again in February 2014.
“We believe there is room for further adjustment on the cash rate, and while a favourable decision in February will be too late to encourage Christmas spending, this adjustment would certainly allow retailers to start their new year with confidence,” Zimmerman said.