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Recession-beating Australia is in robust economic health but with the central bank trying to keep inflation in check by raising rates consumers are beginning to feel the pinch, bringing little joy for the country's shops.
More than 65% of traders were faring worse than last Christmas, said the Australian Retailers Association chief Russell Zimmermann - grim news in a period when the industry makes 40% of annual profits.
"By all accounts this hasn't been a very joyous Christmas for retailers who are slashing prices pre-Christmas just to get consumers in the door," Zimmerman said, describing it as a trend "defying tradition".
Rate hikes were the chief cause of consumers' caution, with a 25-point increase in November bringing the official rate to 4.75%, ramping up pain for mortgage-holders, he said.
The Australian dollar's persistent strength at around parity with the greenback was also hurting retailers, driving bargain-hunters to shop offshore in US dollars online and dodge the 10% goods and services tax.
At the same time unseasonably cold and wet weather in some parts of the country had dampened demand for traditionally popular summer clothing and other seasonal items, said Zimmermann.
"Retailers would love some relief from an extremely tough year," he said, expressing hope for a bumper few days before shops close Friday for the Christmas weekend.
"Traditionally consumers do leave their shopping until the last minute so retailers have all their fingers and toes crossed that shoppers will be rushing to the tills and taking advantage of extended trading hours."
The latest figures showed a 1.1% slump in retail turnover in October, following flat trade the previous month, with cafes and restaurants, and clothing and footwear sectors suffering the worst falls.
