New Zealand's retail stores have a common reaction of a cautiously moderate spending in the forthcoming Fall 2010 shopping towards the Christmas season would further boost up sales.

In a survey of the top three clothing retailers in the country, Hallenstein Glasson (HLG:NZ), Postie Plus, Pumpkin Patch, and Kathmandu (KMD:NZ) see the retail selling environment would still be challenging in the near term.

Hallenstein Glasson Holdings Ltd. recorded a rather high net income of 53 percent, which it claimed was not even due to price cuts, but to product expansion.

In a report to the New Zealand Stock Exchange, Hallenstein said its net income moved up to NZ$19.6 million ($14 million) in the year ended Aug. 1 from NZ$12.8 million posted a year ago. Sales jumped 4.5 percent. It said the profit included a one-time NZ$852,000 charge for changes to tax provisions.

Hallenstein shares have gained 13 percent the past three months as the company said better margins were achieved with a stronger NZ dollar. It said raw materials were cheaper and understanding the market better boosted margins.

Chairman Warren Bell said in the statement: "Real gains in margins have been achieved as a direct result of delivering to the market a more acceptable product offering."

Bell, however, shared the sentiment of that of Postie Plus Group, which saw that retailing would continue to be a painstaking deal this Christmas.

Postie Plus Group, which is known for their baby clothing and other apparel, saw 6.5 per cent drop in full-year pre-tax earnings.

Last week, Pumpkin Patch and Kathmandu reported higher earnings, which were on the back of retail discounts and price slashing.

Although this did not deter the two retailers Pumpkin Patch and Kathmandu to expand their network of retail clothing chains to reach more consumers throughout Australia, NZ, and the United States.