Australian retailers are increasingly concerned of the sector's persistent weakness even during traditional shopping periods.

In the second blow to the retail sector in two days, figures announced this morning show Australian retailing 'muddling along' when it should be taking off at a gallop for Christmas, Australian National Retailers Association (ANRA), CEO Margy Osmond said today.

Mrs Osmond said the September figures released today by the ABS, showed a 0.3 per cent increase across the sector with strong growth in clothing (up 2.5 per cent), but slow numbers for other retail sectors.

"Launching into Spring you would expect clothing and accessories to improve, but for the rest of the sector numbers remain flat. Taking out café and restaurants the September numbers are still 50 per cent lower than what we would expect at this time of year - 2.6 per cent up on September last year, which is very disappointing when healthy growth should be closer to 6 per cent.

"Consumers might be cruising the malls, but it's strictly window shopping and with the high dollar growing numbers are turning to their laptops and the lure of overseas websites. Retailers will be working hard to encourage them to feel the Christmas spirit locally and stock up in-store for the holidays.

"Australians are going online to shop more now than they ever have, and are now looking at shoes and fashion from overseas retailers in greater numbers thanks to the rising Aussie dollar. It's great news for consumers, they have more retail options than they ever have before, but shops at home will suffer as a result.

"A concerning trend for the last weeks before Christmas is not only the online activity, but the attitude and spending intentions of Australians who have become more and more frugal and price conscious in the last twelve months.

"Of 1000 surveyed by ANRA and American Express recently, only 13 per cent planned to increase their spending from October, and one-in-five planned to decrease their spending, in what we would expect to be peak Christmas shopping period. Of those in the 35-44 year old age group, who might be expected to have a young family, only 9.6 per cent were planning to up spending this month.

"This either spells a dismal run-up to Christmas for retailers or a mad rush for the stores to fill the stocking before the big day.

"Adding to retailers concerns, consumers are continuing to delay major purchases - a key indicator of how confident they are in the economic environment. Of those who responded to the survey, 27 per cent had delayed a major purchase in October, and that number is only likely to increase with the interest rate rise announced this week," she said.