A new retail report has shown that despite Queensland being one of the worst performing states in Australia in recent years, the tide is turning.

The sector has now grown to above the national average, putting the state ahead of Victoria, Western Australia and the Northern Territory, thanks to improvements in the mining sector and new investment.

Economist David Rumbens said businesses were feeling confident heading into the Christmas season, with 80% of retailers festive sales to exceed their 2017 sales, this year.