The Boxing Day aftermath proved encouraging enough for the Australian retail sector, and major players are still cautiously optimistic about the general picture.

The holiday season was ushered in with a gloomy environment for the retail sector as stores were targeted for closure and major brands like Billabong and JB Hi-Fi warned of sliding margins amidst the expected shopping spree.

Yet when the Boxing Day sales results came in, retailers heaved a sigh of relief that the overall numbers topped that of last year's achievement and by more than $60 million, according to The Herald Sun.

The last three week rush, experts said, not only boosted sales and morale of the sector, however belatedly, but also cleared out stocks.

The overall situation, however, remains dismal for the industry despite the last minute pick-ups.

Harvey Norman chief Gerry Harvey described the last few weeks of the season as "very busy ... and fantastic."

"But it's still tough for retailers. It might be OK for a few days, but it's the whole year that counts, not just a few days," Harvey told the Herald Sun.

He allowed though that Harvey Norman stores have reported sales spikes of up to 15 percent as shoppers took advantage of discounts offered on major home buys such consumer electronics and appliances.

Yet that rally, Harvey reminded, will not deter many retailers from rationalising their operations next year, meaning stores would close shop and employees would be separated from their posts.

Australian Retailers Association Executive Director Russell Zimmerman, however, is more optimistic as he revealed that total sales could hit more than $6 billion by middle of January as residue shopping continues on through the first month of the coming year.

"I wouldn't say sales are terrific, but we are happy with the way it's going," Zimmerman said, adding that sales actually improved when compared to last year's numbers.

The sector's hope would be largely anchored on the likelihood that the country's cash rate would be further pushed back in the months ahead, possibly settling at four percent for the most part of 2012, which experts said should nudge shoppers to hit the stores more frequently.