Retailers will push sales this Christmas in the hope of persuading shoppers to spend at least $250 million more than during last year's festive season.

New Zealand Retailers Association chief executive John Albertson said competition was likely to encourage shops into discounts, adding that the "real action" would start next month.

"We'll certainly see a very competitive market - what format it will take is hard to tell. There's no question that there will be a significant fight for everyone so I think we'll see a competitive place and it will be very good for consumers," he said.

Will you be cutting back on your Christmas spending this year?