The Christmas season will be crucial to South Australia's retail sector, which has been doing it "incredibly tough", Premier Jay Weatherill says.
This Christmas marks the first time Adelaide's inner-city shops will be allowed to trade on the Boxing Day and New Year's Day public holidays.
Retailers hope the change will provide a much-needed boost to the sector along with extended shopping hours in the lead-up to Christmas.
"Retail is doing it incredibly tough. This is one of the sectors of the economy that is performing much lower than many of the other sectors of the economy," Mr Weatherill said.
"We have done out bit to try to loosen things up, especially for city traders."
The premier said it was hoped the most recent interest rate cut would also help improve consumer confidence.
"We hope people get out there, enjoy a great Christmas and if they do have money they can afford to spend, they spend it in our stores," he said.