Victorians have shrugged off economic concerns and come out in force for the traditional Boxing Day sales.
More than 500 eager bargain hunters were queueing in Bourke Street Mall at 5am (AEDT) on Wednesday when David Jones and Myer opened their doors to launch the massive sales day.
By mid-morning the mall was jammed with shoppers lugging bags of bargains and hunting down others.
Consumer Affairs Minister Michael O'Brien says the huge turnout shows consumer confidence is growing.
"The early indications in terms of crowd numbers have been quite good and stronger than last year," he said.
"We've got an economy that's got relatively low unemployment, low inflation and low interest rates so we are hopeful that this will be a sign that people have got a bit more confidence in spending.
"That's good for retail jobs and it's good for the economy."
Victorians are expected to spend more money than any other state on Boxing Day, forking out an estimated $588 million.
Nationally, retailers expect spending to top $1.8 billion.
David Jones Regional Manager Victoria, Lyn James, said queues were bigger than last year, which stretched around the block.
"So far this morning, (we're) really pleased. Obviously people are spending, but it's a long day for us and obviously it's just one of many days," she said.
The first person in the queue had been waiting since 6.30pm on Christmas Day, she said.
He was there to pick up a handbag for his girlfriend.
Ms James said the key spending areas were still ladies' shoes, handbags and men's accessories.
David Jones launched its sales online at 9am on Christmas Day, but Ms James said most people used it to research bargains before heading instore to buy.
Mr O'Brien said consumers should know that just because they buy an item on sale, doesn't mean they have fewer consumer rights.
"Consumers need to understand that if they buy anything which doesn't live up to what's claimed for it, they do have a right to a refund," he said.
Mr O'Brien also reminded shoppers to use their gift cards before they expire, or it will be like throwing money away.