pre-christmas sales hit a record $38b

AAP

The economic downturn has not dented pre-Christmas sales with consumers across Australia spending a record $38 billion.

The peak industry body said on Wednesday that sales were up on last year's record by four per cent.

NSW consumers were the biggest spenders, splurging around $12 billion, followed by Victorians at $9 billion and Queenslanders at $8 billion.

Retailers' Association executive director Scott Driscoll said the pre-Christmas discounts helped stimulate trade.

"We have seen a massive resurgence in consumer participation from all reports," Mr Driscoll said.

"I'm also expecting the Boxing Day and post Christmas sales to be big."

Mr Driscoll attributed low interest rates, consistently low petrol prices and the federal government's bonus of $1,000 for pensioners and many families for the strong trade.

He said a further $7 billion was expected to flow through to the nation's retailers on sale items in the two weeks from Boxing Day.

"I can say the hottest items on Christmas lists for kids this year have been Wii Consoles, Nintendo DS, Elmo Live, Pirates of the Caribbean merchandise, Transformers and Baby Born," said Mr Driscoll.

"For the bigger kids, flat screen plasma and LCD TVs have been flying out of stores.

"Supermarkets have also been doing a roaring trade, so I thing Christmas breakfast, lunch and dinners will be pretty special right around the country this year."