SHOP owners hoping lively Christmas trade can add a bright spark to a dull year are worried there is too much retail in the ACT.
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Canberra Business Council chief executive Chris Faulks said a recent focus group found retailers were concerned about an oversupply of stores.
![Too many shops, not enough shoppers: study Too many shops, not enough shoppers: study](/images/transform/v1/crop/frm/silverstone-ct-migration/317ffbb4-b854-4c51-b4bc-abab25ff7ed0.jpg/r0_0_358_500_w1200_h678_fmax.jpg)
''The ACT has the highest amount of retail space per head of population in Australia,'' Ms Faulks said.
She said federal budget cuts announced this week would hurt Christmas buying.
However, Manuka jeweller John Brew had seen a welcome spike in trade in recent weeks.
Retailers such as Mr Brew have experienced a difficult 12 months while industry observers have pointed to Australian Bureau of Statistics figures showing the ACT had fared worse than any other state or territory except in September.
''We're seeing an upturn at our shop now, we're optimistic about Christmas,'' Mr Brew said.
''But it can't really make up for what we've lost already.''
They watched as shops went under. The most publicised exodus of retail was early this year when a number of stores moved out of Brand Depot at Majura Park.
ACT and Region Chamber of Commerce and Industry chief executive Chris Peters said some businesses would probably close after a disappointing Christmas.
''I don't know who they'll be but businesses on the edge will hold on in the hope Christmas will turn them around,'' Mr Peters said.
He said there was a chance it could give Canberra shoppers much-needed certainty about the future and with it more confidence.
IBIS World predicts clothing and footwear retailers will end up worse than last year because the extra dollars spent this Christmas will be less than the inflation rate for the past year.
Food sellers would effectively equal last year's sales. Restaurants and electronics stores were expected to do much better.
Online buying, one of the major reasons shop owners were struggling in the territory, was expected to increase by almost 10 per cent this year.
More than a third of Australians planned to spend less this festive season.