The ACT was the only state or territory in Australia to record a decline in retail turnover during June this year with a 0.6 per cent drop in trend terms.

The ACT recorded a total industry turnover of $401.2 million on trend which is the lowest posting since December 2012 and a 2.3 per cent fall from June 2013 figures.

NSW, Tasmania, South Australia, and the Northern Territory all recorded small increases of between 0.2 and 0.4 per cent, with Victoria, Western Australia and Queensland remaining relatively stable.

The CEO of Canberra Business Council, Chris Faulks, said the figures were worrying and both online shopping and the "18 month long" conversation Canberra has been having about public service cuts was continuing to bite at retail sales.

"If you look at the retail turnover figures, the ACT just stands out going back all the way through 2013 even, so you can see the impact of the uncertainty," Ms Faulks said.

"The fact that other jurisdictions have had position growth over the past seven to eight months, apart from Western Australia, means that there is a particular impact in the ACT and that's almost certainty being caused by the employment market," Ms Faulks said.

Ms Faulks said however that the Canberra economy was strong and retail would bounce back.

The new ABS figures show supermarket and liquor profits have risen in the ACT in trend terms – which Ms Faulks said was unsurprising.

Manuel Xyrakis, joint manager of 51-year-old Ainslie IGA supermarket, credits a big refurbishment two years ago for his "dramatic" rise in turnover this year from last June.

Mr Xyrakis, who manages the store with his sister Irene Mihailakis, employs 85 staff – 40 full times and 45 part time or casual – with about 960 square metres of space at the Ainslie shops.

Mr Xyrakis said the decision to spend and revamp his store contradicted all advice he was given at the time, and he encouraged other operators to follow suit if they had the means.

"In order to improve your business you need to think what does the customer want. You can't be as average as anybody else, you have to go over and above and see what's needed," Mr Xyrakis said.

"[Other shops] are struggling, in supermarkets and cafes, lot of people are down, if you have the capability outlay some capital and improve your shop," Mr Xyrakis said.

In the refurbishment, the family took the liquor out of the supermarket and put it in the dedicated liquor shop next door and built up a cheese section.

Ms Faulks added the brunt of the public service cuts were yet to bite and many people still had disposable income but were just not spending it.