Weak signals emitted by the general condition in Australia's retail industry did not prevent key players from achieving higher margins in fiscal year 2011, and the good news is that better quarters are ahead for the sector, according to a new study.

The surge of higher profits, according to analytic firm IBISWorld, hinged on the reinvigorated interest shown by global retailers on the local scene, which in recent months has seen plunging sales figures.

Yet amidst the woes expressed by major companies, big names such as Harvey Norman, Woolworths, Wesfarmers and JB Hi-Fi, which straddles segments from electronics to hardware retailing, all reported better sales numbers in 2010-2011 as compared in the previous corresponding period.

IBISWorld general manager Karen Dobie has indicated that improved prospects are looming for the industry following a jump in consumer spending by at least 3 percent in the early months of the current financial year.

Economists attributed the hike to steady levels seen in jobless and interest rates while higher savings afforded Australians more leeway to resume their shopping activities that suffered declines in the past year.

"This will make Australia an attractive location for international brands, with both Costco and IKEA planning further stores and UK mega fashion store Topshop opening its first Australian outlet by 2012," Dobie told the Australian Associated Press (AAP) in flagging the encouraging trend.

The same picture, she added, should be sustained in the many months to come, riding on the heels of a robust Australian dollar that plays a giant role in pushing down the price levels of imported products.

As the industry saw the exit of many players in the past quarters, particularly from the clothing and book segments, the entry of new international players have brought in vibrant spirits to an otherwise sagging industry, at least for the local players.

IBISWorld cited the success stories that accompanied the new investments poured in Australia by Bunnings, Costco and Zara, which all saw their business operations flourishing and expanding since entering the local market last year.

And while recovery is mainly the preoccupation of most players in the local scene, Dobie said that all indications pointed to the likelihood that steadiness and growth will visit many companies this financial year, including the previous losers.

Excitement can be gleaned in the hardware segment of the industry as IBISWorld highlighted the planned expansion of Woolworths in the field with the planned unveiling of 15 new Masters outlets within the next 12 months.