Retailers fear consumers will tighten their purse strings in response to spending cuts and tax increases in the Abbott government's first budget.
Australian National Retailers' Association chief executive Margy Osmond said the industry was concerned about a possible hit to consumer confidence following Tuesday's budget.
"Retail sales have been gradually growing for eleven consecutive months and retailers are concerned that today's budget will reverse these gains and erode consumer confidence at a critical time," she said.
She said an increase in fuel excise would also hurt retailers by pushing up transportation and freight costs.
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