The Retailers' Association says retailers are likely to benefit from some of the extra money householders will have to spend at Christmas.
It estimates many households are receiving an extra $60 to $80 from recent tax cuts, falling petrol prices and lower mortgage rates.
The Association's chief executive John Albertson does not expect Christmas to be a huge bonanza for retailers, it will certainly be better than was first thought.
Mr Albertson says given retailers are marketing aggressively during the recession.
ANZ-National Bank chief economist Cameron Bagrie doubts retailers will reap the benefit of householders' greater disposable income.
He said people are likely to be cautious over spending because there is still a lot of debt and people are worried about their job security.