The election result may have triggered a bounce on the share market and talk about the end of the housing slump, but retailers are not expecting their struggles to end.

Key points: NAB credit card transaction data show retail sales fell 0.5 per cent in April

NAB credit card transaction data show retail sales fell 0.5 per cent in April "Discretionary retail is clearly in recession", NAB's chief economist says

"Discretionary retail is clearly in recession", NAB's chief economist says A Wharton Business School study found every dollar saved on staff may cost several dollars in lost sales

Official ABS figures show retail turnover grew a meagre 3 per cent over the year to March, and profit margins remain under intense pressure in many parts of the sector from increased competition.

Eva Galambos, the proprietor of a high-end fashion store in Sydney's ritzy suburb of Paddington, sums up the downbeat mood.

"It's definitely harder than it ever was before," she lamented.

Ms Galambos said foreign competitors setting up shop in Australia, ruthless competition and the soft economy were all hurting.

On the economy, her views are supported by NAB, with its latest study of its customers' credit card transactions.

It suggests retail sales fell by 0.5 per cent in April, the worst monthly result in two years.

"Discretionary retail is clearly in recession, so the fact that it was bad leading into an election doesn't surprise me, although I wasn't expecting to see a number like that," NAB chief economist Alan Oster said.

But what of the election?

Parlour X is in the federal seat of Wentworth, which in the past few months has seen a by-election after local member Malcolm Turnbull quit, a state election and then last week's national poll.

Eva Galambos is the founder of high-end fashion retailer Parlour X, located in the Sydney suburb of Paddington. ( Supplied )

"There's no question that, on that Saturday of voting, there's definitely a little bit of a lull, but in the build-up to, and in the aftermath, I don't think it really affects us necessarily," Ms Galambos said.

Low wages growth is an issue though.

NAB's Alan Oster said it was being reflected in how much people were spending.

"They're paying for things they think they have to have — like school, education, medical bills, that sort of stuff — and so they don't think they have a lot of money left," he observed.

'Staff have direct link to sales'

The ongoing weak retail environment coincides with new research from the United States that suggests bricks and mortar retailers are shooting themselves in the foot.

The Wharton Business School at the University of Pennsylvania argues far too many shops regard staff as a cost to be minimised, rather than an investment to drive sales.

Exhibit A in the United States is the Sears department store chain.

Once the biggest retailer in the US until overtaken by Walmart in 1989, Sears has shrunk from 3,500 stores to just 425 and is now under bankruptcy protection.

"The more prudent retailers would agree entirely with the Wharton thesis, which says that staff, when trained, when properly positioned, absolutely have a direct link to sales," Brian Walker, the founder of consulting firm Retail Doctor, said.

As the Wharton Business School researchers explain, "for every dollar a retailer saves on staffing costs, it may be losing several dollars in revenues and gross margin if customers leave a store empty-handed because they can't find a knowledgeable employee to help them".

Customer service, or the lack of it, has been at the forefront of the decline of Myer and David Jones.

In Myer's case, its share price is 83 per cent lower than when it floated on the stock market 10 years ago.

"The ultimate barometer of good customer service, and efficient wage rostering and efficient staff leadership, is customer spend," Mr Walker explained.

"And the numbers tell the story."

As they do at the Reject Shop, which is the latest chain to run into problems, flagging a full-year loss, the departure of its chief executive and the closure of more stores.

"It's a constant area of adaptation and refinement for retailers," Mr Walker said.

"Super Retail Group (which owns Rebel Sport and BCF, among other brands) comes to mind as an example.

"They always ensure that they have good service levels."

Training and product knowledge crucial

At the luxury end of the market, Mr Galambos said crimping on staff was not an option for a business hoping to thrive.

"You can see that [there are] certain touch points in the building that need to be staffed in order to be able to provide the luxury experience that our customers expect from places like this," she said.

But staff numbers are only part of the story. Training and product knowledge are crucial.

Terri Winter, the owner of a homeware chain, said that was something she was very aware of.

"Our staff, they're interior designers, they're architects, they're students who are studying architecture or design," Ms Winter explained.

"They live and breathe it. They love it. They want to help customers understand it too.

"So, our MO is making sure that we stick to our DNA and our staff love the products and therefore the customers love the staff."

Terri Winter, the owner of Top3 by Design, stands in one of her stores, February 2019. ( Supplied: Terri Winter )

In a retail environment full of challenges, including the rise of online shopping, the message is that smart retailers help themselves.