RETAILERS have predicted another record spending spree this Christmas, but shoppers are likely to opt for more practical “jocks and socks” style gifts as tighter economic conditions bite.

The National Retail Association yesterday predicted a Christmas spending increase of 4.5per cent this year, which would take the national splurge on thefestive season to more than $22.6 billion.

But NRA executive director Patrick McKendry said this was a modest target, just ahead of inflation, which took into account that retailers in recent months have faced some of the toughest trading conditions since the introduction of the GST in 2000.

Mr McKendry’s prediction of another record echoes the confidence of Woolworth’s boss Roger Corbett who last month predicted a good Christmas trading period. Other major retail bosses have been less sure of a bumper season.

Mr McKendry said record petrol prices, falling house values and the interest rate increase in the first half of the year meant shoppers would be looking for more practical gifts.

“I think we are going to see a lot more jocks and socks type purchases as people say `look we want this thing to keep going beyond the Christmas period’.”

But he said technology, such as entertainment systems, iPods, MP3 players, plasma televisions would remain popular.

Mr McKendry said there was some “pent up demand” for spending after three quiet months following the spike in oil prices.

For some the rush has already arrived. The homeware store Holy Sheet in King Street, Newtown, in Sydney’s inner-west, was packed all day yesterday.

“I have sold so many Christmas trees today,” said shop assistant Lynda Lemmon.

“They are trying to get things organised, coming in with their lists,” Ms Lemmon said. “This year, instead of buying a gift pack, they are loving putting together gift packs.”

Graphic designer from Newtown Shigemi Nakamura-Simms, 45, was out buying Christmas presents yesterday and said she loved doing it. “To find a Christmas present for friends is always nice, to find something special for friends is very satisfying. It is always better to get your shopping done before the rush starts, there is always a bigger range.”