RETAIL sales are expected to show some bounce when figures are released today.
But the long-term recovery of the sector is likely to be delayed by restrained employment.
AMP Capital Investors chief economist Shane Oliver said November sales - with their hints of Christmas trade - should provide some good news to a sector that fell 1.1 per cent in October to $20.2 billion.
"Retail sales for November are likely to rise 0.5 per cent but this will only partially retrace the sharp 1.1 per cent fall, leaving retailers still out in the cold," he said.
Victorian and West Australian retailers fared better than the other states in October, strengthening turnover by 0.3 per cent, compared with flat or negative consumer trends.
Victorian shoppers spent $5.27 billion in October and today's statistics are likely to show a slightly healthier $5.3 billion across the state for November.
The Australian Retailers Association yesterday estimated that nationally, post-Christmas sales could soar by as much as 3 per cent to nearly $7 billion.
The association said that Victoria's share of the two-week holiday splurge is expected to be $1.75 billion.
However, the long-term recovery of the sector is likely to be stunted by ongoing under-employment.
Commsec chief economist Craig James said one in 13 people wanted more work than they currently have and were likely to hold back on spending.
"One reason that Aussies are not spending like they used to is because many still can't get jobs or aren't able to work the number of hours that would enable them to meet everyday living costs," he said.
Meanwhile, a group of small businesses yesterday joined Harvey Norman, Borders, Target and David Jones to protest against tax-free online sales.
The National Retail Association's Gary Black said his group had lobbied the Federal Government for years to axe the GST-threshold.
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