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Consumers are hanging on to their recreation goods, such as golf clubs, and furniture as they put off discretionary spending during the economic slowdown, retailers say.
They blame negativity from the global financial crisis for a reluctance to spend on anything but the essentials.
"Consumers are being very particular," Australian Retailers' Association chief executive Richard Evans said.
Soaring petrol prices and high interest rates in the first half of last year were a big turn-off for consumers as well.
And when the financial crisis caught up with Australia, consumers were already keeping their money in their pockets. Evans said a big factor in consumer habits was the negative coverage about the financial crisis in October and November.
"The golf clubs will last another year, the couch will last another couple of months - that's what we saw happening," Evans said.
Restaurants had also fallen victim.
"You don't go out and buy that A$40 ($50) bottle of wine at the restaurant, you buy the same wine for A$15 and buy some quality food at the supermarket and you go home and cook it."
Consumers are "cashed up" and there were early signs they would come back in a significant way, he said.
- AAP
