Bleak retail growth of only 0.2 per cent in June is very disappointing and reflects challenging times for retail as it climbs out of the crater left by the global financial crisis, said Australian National Retailers Association (ANRA) CEO Margy Osmond.

"Clearly the stimulus package in 2009 made for strong sales in difficult times. However, the good times of early last year have been followed by the sluggish growth and the hangover retail is suffering now. We are still some way from the Berocca kicking in for the retail sector," she said.

Although retail figures have climbed consistently in the past four months, for the first time in two years, the growth is slow and the sector does not look like making significant recovery until well into 2011.

""We're grateful there has been continued growth, but clearly retail is not out of the woods yet. Sales volume growth in the June quarter is 0.8 per cent, which is stable, but in the past 12 months the sector growth is only 1.3 per cent, well below the 3-4 per cent range retail would consider normal growth for sales volumes," she said.

June figures were predicted to be higher, with no interest rate rises in the month, and the traditional sales season. The non-stop sales of the past six months may also have affected the June spend.

The sale culture has also seen an impact on prices with price decreases for the month in clothing, household and department stores.

"We know from the ANRA/AMEX survey, which was released today, that Australians with a mortgage are delaying purchases or waiting for sales and that's likely to get worse in the next six months.

"Of the 1000 people interviewed in our survey - 24 per cent of respondents had delayed purchases of items costing over $500.00 and in the next six months 47 per cent of the same group anticipated interest rates making an impact on their spending choices.

"Critically we need to avoid a string of interest rate increases in the run up to Christmas 2010 to give retail a chance at a stronger 2011," she said.