Christmas shoppers hitting the streets

AUSTRALIAN shoppers will be weighing up who's been naughty or nice as they splash out $285 each on Christmas gifts this week.

Friends and relatives of ACT residents are in for a particular treat, though, as it is estimated they will each spend nearly $500 this week getting their Christmas shopping done.

The Australian National Retailers Association (ANRA) said the penultimate week before Christmas would see shoppers flocking to the nation's stores.

Victoria is set to be a hotspot of shopping, with people spending $171 million more this week than they did the previous week, according to predictions from ANRA and the GE Capital Christmas Retail Index.

"Victoria has always been kind to the retail sector; we're hoping the surge to the shops before Christmas sets the tone for 2013," said ANRA chief executive Margy Osmond.

"Australians will spend $6.5 billion this week on Christmas gifts - $934 million on domestic online and almost $5.6 billion instore - to fill the contents of many a Christmas stocking."

Retailers are cautiously optimistic about Christmas trade despite October's flat retail figures, which were recently announced.

"October's cash rate cut didn't give the retail sector the lift we might have hoped for but the cash rate cut was not immediately passed on by the banks and consumers no longer respond immediately to a cut," added Ms Osmond.

"We are hoping as Aussies realise there is extra cash in their wallets they will splurge a little on the Christmas season or, at the very least, in the post-Christmas sales."

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