Australia will continue to be an attractive country for international retailers following some major Australian retailers recently bucked the gloomy trend, according to a new research released from the nation's market research firm IBISWorld on Monday.

Despite negativity in the retail sector, Australia's Harvey Norman, Woolworths, Wesfarmers and JB Hi-fi all reported higher profits in 2010-11.

IBISWorld analysts expect Australia's retail spending to be three percent higher in 2011-12 financial year than the previous year, while interest rates and unemployment remain low and disposable incomes increase.

"This will make Australia an attractive location for international brands, with both Costco and IKEA planning further stores and UK mega fashion store Topshop opening its first Australian outlet by 2012," IBISWorld general manager Karen Dobie said.

She expects conditions to improve for retailers in the coming 12 months.

All of the retail segments are predicted to experience growth on the back of a steadier Australian dollar, which has kept the price of imported goods low, IBISWorld said.

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