Retail sales only dropped slightly and people in regions are spending even after a series of interest rate hikes

"People are spending and they're still after a bargain after Christmas," Harvey Norman store manager Brad Stewart says.

"Our largest [sales] are home packages, TV, and appliances for Christmas gifting and they've done really well, especially families that built new homes."

But it was the much-awaited Boxing Day sales frenzy that everyone was watching out for, Mr Stewart said.

"A lot of people are still holding up to buy that fridge till the sales but they've been looking at the products online," he said.

"For sure, they'd take advantage of the sales at this time of the year, and it's the best time to strike a bargain as they say."

The past 12 month's retail sales across Australia fell by 0.2 per cent as cost of living pressures started to bite on households following interest rate rises, the Australian Bureau of Statistics said in its latest forecast.

The Reserve Bank has lifted the cash rate to 3.10 per cent in its seventh announcement of an interest rate hike on December 6.

"The October fall in retail turnover ends a run of nine straight monthly rises and suggests the cost of living pressures including interest rate rises have started to weigh on consumer spending," ABS head of retail statistics Ben Dorber said.

All retail industries experienced a drop in sales, except food retail which went up 0.4 per cent following the floods which triggered spending while food prices were soaring, Mr Dorber said.

Households have however reduced their spending on clothes, shoes, and personal perks reflected in the 2.4 per cent drop in department store sales across the country.

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Dubbo's popular department store, Myer has ramped up its marketing campaign offering customers up to 70 per cent less on homewares brands, 40 per cent on women's and men's fashions, half-price on beauty products and fragrances, and 20 per cent on kitchen appliances.

"The Myer Stocktake Sale has proven incredibly popular once again with our customers who've taken advantage of some of our best offers this year in particular, categories such as beauty, women's and men's fashion, and home have been a huge hit," a Myer spokesman told the Daily Liberal.

"Customers can continue to take advantage of some fantastic offers both in-store and online, plus many more great savings."

Both Myer and Harvey Norman have seen the transformation of their customers to become savvy online buyers.

"We do more online sales than previous not just in the Dubbo area but including surrounding towns. If a particular city or town store doesn't have the stock, we ship the stock from our store here, it's a big part of our business now," Mr Stewart said.

"Often customers come in with a snapshot of the product they want on their smartphones. It makes it easier for us, and for them to determine the correct sizing for their spaces such as the fridge spot.

"Twenty years ago, we do everything from scratch, now online customers come in knowing exactly what type of product they want. They have more information at hand, and are ready to rock and roll by the time they get to the shop."

While bargain fashion and beauty products are quickly out the door at Myers, Mr Stewart said, it's the top-of-the-range home entertainment brands such as large TV screens that customers are snapping at half price.

"They're the commodity at the moment and coming pretty cheap, and pretty solid sales from last year's," Mr Stewart said.