Australian retail sales have continued to claw back territory lost to the global financial crisis, with September turnover increasing 6.4 per cent on September 2008, according to the Australian Bureau of Statistics. 

The statistics are heartening news for retailers, as we enter the Christmas trading period. Sales for the September quarter grew 1.4 per cent.

ARA executive director Russell Zimmerman said the figures were a good indication that the economy was on it way to recovery.

"The concern for retailers now is to keeping consumer spirits high in the lead up to Christmas. New South Wales and Victoria experienced the strongest growth and this is most likely due to the Spring Racing Carnival celebrations in these states," Zimmerman said.

The trend estimate showed an increase of 0.4 per cent for September, following similar increases in July and August.

Smaller retailers were also said to have fared better than large retailers in September.