WA shoppers to spend record $2.8b in Dec

With 11 days to Christmas, Western Australia's retailers are gearing up for a bumper festive season with WA shoppers tipped to spend a record $2.8 billion this December.

Retail spending and consumer confidence remain high in the lead up to Christmas as a result of the state's strong economy, low levels of unemployment, population growth, wages growth and widespread prosperity across the state.

Figures compiled by the Retail Traders' Association of Western Australia show about $1,300 will be spent on average by every man, woman and child in WA for the December/ Christmas period this year.

Western Australians are expected to spend $189 million or 7.3 per cent more than last Christmas.

December sales are also likely to increase by 25 per cent or $542 million compared to November this year.

Despite the expected surge in retail spending this Christmas there remains a number of significant challenges facing WA retailers.

Sales could be affected by several recent interest rate rises and the potential for further hikes in the New Year forcing homeowners to moderate their spending.

The retail sector, the state's largest employer hiring more than 150,000 people, continues to feel the brunt of the severe labour shortage. A large number of shops across the state can't find the extra workers they need and help wanted signs in store windows are commonplace.

Based on Australian Bureau of Statistics data, the RTA estimates there are more than three thousand job vacancies across the WA retail sector heading into the Christmas rush.

The latest CCI - Commonwealth Bank Survey of Business Expectations highlighted the extent of the problem with 73 per cent of respondents saying labour is "scarce". 77 per cent of respondents also predicted the shortages will continue in the December quarter.

The ongoing difficulty employers have in attracting and retaining sales staff is adversely impacting their ability to meet the needs of their customers and adversely impacting their ability to grow.