Australian Retailers Association Executive Director Richard Evans said confidence among retail SMEs reached positive 18 percent and reflected the sector's optimistic outlook for the months ahead.

"There is a definite feeling of optimism this quarter with retailers telling us the ‘future looks good', reflecting the rise in consumer sentiment and aligning with expectations of improved retail trade growth by the September quarter," Evans said.

"With consumer confidence rising, retail sales performance also increased four percent to negative 14 percent. Expectations for continued sales growth jumped 40 percent to a balance of six percent, further cementing the sector's positive outlook for improved growth in the coming months.

"Other reasons retailers gave for improved confidence included that their businesses were established and experienced and their pricing was competitive.  Other retail SMEs noted they had been able to find opportunities in the current economic downturn, with their products being more popular for consumers who were decreasing their spend.

"Adding to retail confidence was improved support for the Federal Government with the three percent approval rating up eight percent from the previous quarter.

"Retailers said they were feeling the benefit of the Federal Government's economic stimulus package and they were also supportive of the 50 percent tax rebate for small business investments announced as part of the Federal Budget.

"However, there were still 25 percent of retailers who believed the Federal Government's policies worked against small business with a feeling there was too much bureaucracy related to retail operations," Evans said.

The Australian Retailers' Index analyses the Sensis® Business Index results for businesses in the retail sector, providing a snapshot of the retail sector every quarter in the following categories: retailer confidence; retailer concerns; sales, profitability and employment; capital expenditure; wages and prices and assessment of Federal Government policies. 

For over 105 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.5 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit http://www.retail.org.au/ or call 1300 368 041.