Retail sales over the Xmas New Year period were 2% higher than last year, claims the Retail Traders Association proving that the Federal Government handouts did makes their way into the economy they say.

Retail sales over the Xmas New Year period were 2% higher than last year claims the Retail Traders Association proving that the Federal Government handouts did makes it’s way into the economy they say. 

The Association’s executive director, Richard Evans, says the Federal Government’s cash handouts, and the falls in petrol prices and interest rates have helped buoy the retail market.

And he says he is expecting the handouts to continue to flow through to cash registers.

“It’s too much to expect that people went out immediately and spent it, they may have used it on their credit cards or to reduce debt, but they’ll soon realise that they’re cashed up and they’ll start re-entering the market place,” he said.

Mr Evans also says retailers have been slashing prices to get rid of stock but he says prices are unlikely to remain low with the slump in the Australian dollar.

“Expect less range on the shelves over the winter months and probably a little bit more extra in price,” he said.

“What we have to understand though, this is a normal cycle… a bit more severe than normal though of course, but we’re expecting growth to come back into the retail market in April-May this year and with strong growth in the September quarter.”