ARA executive director Russell Zimmerman said retailers relying on a business boost in Christmas sales will be concerned that consumer confidence will drop in the face of three successive interest rate rises taking cash out of their pockets.

"The ARA has been stressing for several months the need for the Reserve Bank to put a hold on interest rate rises until there were clear signs of recovery. The 2009 ARA Christmas Retail Expectations Survey revealed 56 percent of retailers believed the past two interest rate cuts would decrease sales over the festive season. With the extra rise on Tuesday, these statistics may now rise and cause even greater impact to sales," Mr Zimmerman said.

"The message to consumers who may be feeling unsettled after three consecutive interest rate rises is to responsibly enjoy the gift giving spirit of Christmas.

"October seasonally adjusted terms showed increased trade in the following states: New South Wales (1.2%), Western Australia (0.9%), Tasmania (1.5%), Northern Territory (1.8%). Victoria (-0.9%), Queensland
(-0.2%) and Australian Capital Territory (-0.6%) showed a decline and South Australia was unchanged.

"In seasonally adjusted terms, October showed growth in department stores (1.9%), cafes, restaurants, takeaway food (1.1%), household goods retailing (0.1%). Declines were recorded in food retailing (- 0.1%), clothing, footwear & personal accessories    (-0.2%) and other retailing (-0.1%)

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 www.retail.org.au or call 1300 368 041.