Retail in Asia

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Strong wage growth in Australia tipped to drag retail from slump

The battered retail industry in Australia will emerge from its two-year slump next financial year as better economic conditions help to lift spending, a new report says.

Independent forecaster Deloitte Access Economics predicts sales volumes will edge up 1.2 percent this financial year and 2.6 percent in 2012-13, after growing by just 0.7 percent in 2010-11.

While this would be an improvement, it is still well below what retailers enjoyed before the global financial crisis caused spending to stall.