As headlines go, it was a powerful one: Retail, one of the country's biggest sectors and biggest employers, is "verging on recession".

So said broker Citi, after official figures showed Australian retail sales fell by 0.1 per cent in March, the third negative performance out of four months and the sector's worst performance since the heart of the financial crisis.

"Retail sales number are just 2.1 per cent higher than the same level of last year," Citi said. "This is the slowest growth rate in almost four years."

The Australian Bureau of Statistics figures showed sales declined at department stores, cafes, restaurants and takeaway joints, as well as for household goods. Pharmaceutical, cosmetic and toiletries retailing bucked the negative trend, as did other recreational goods. All listed retailers have experiencing a slowdown in sales since January, Citi said.