Weak trade figures and excessive wage increases causing concern - ARA

 

THE Australian Retailers Association (ARA) said monthly retail trade figures reported today by the ABS were relatively unchanged (0.0 percent) following a 0.3 percent rise in March 2015.

ARA Executive Director Russell Zimmerman said although today’s monthly figures were modest, year on year growth for April is looking strong at 4.1 percent.

“In seasonally adjusted terms there were rises in cafes, restaurants and takeaway food services (0.8 percent) and clothing, footwear and personal accessory retailing (1.3 percent). 

“These rises are to be expected when you take into account Autumn’s cold weather which had well and truly settled in during the month of April, prompting many Australians to start building their winter wardrobes and turn to their local restaurants and takeaway services for comfort food.

“In seasonally adjusted terms there were rises in Victoria (0.5 percent), the Australian Capital Territory (0.6 percent), South Australia (0.1 percent) and the Northern Territory (0.1 percent). New South Wales was relatively unchanged (0.0 percent) and Queensland faced a fall (-0.6 percent), as did Tasmania (-0.9 percent) and Western Australia (-0.1 percent). 

"While interest rates are sitting at an all time low and the recently released Federal Budget delivered some good news for business, unfortunately there is still a lot of support needed to ensure the success of the retail industry into the future.

“The ARA also has strong concerns following the Fair Work Commission’s decision this week to increase the National Minimum Wage to $656.92 per week, or $17.29 per hour.

"The ARA advocated before the tribunal a realistic and manageable minimum wage increase of no more than $5.70 per week for the retail sector, so we are obviously concerned about the adverse effects this decision will have on retailers. The retail industry simply cannot keep up with excessive wage increases,” Mr Zimmerman said. 

MONTHLY RETAIL GROWTH (March 2015 – April 2015 seasonally adjusted)

Clothing, footwear and personal accessory retailing (1.3%), Cafes, restaurants and takeaway food services (0.8%), Household goods retailing (0.0%), Food retailing (-0.1%), Other retailing (-1.0%) and Department stores (-0.7%). Total sales (0.0%).

South Australia (0.1%), Australian Capital Territory (0.6%), Victoria (0.5%), New South Wales (0.0%), Western Australia (-0.1%), and Northern Territory (0.1%), Queensland (-0.6%) and Tasmania (-0.9%). Total sales (0.0%).

YEAR-ON-YEAR RETAIL GROWTH (April 2014 – April 2015 seasonally adjusted)

Household goods retailing (8.5%), Clothing, footwear and personal accessory retailing (7.5%), Food retailing (3.5%), Cafes, restaurants and takeaway food services (3.3%), Department stores (1.4%) and Other retailing (0.6%). Total sales (4.1%).

Australian Capital Territory (5.9%), South Australia (5.8%), New South Wales (4.9%), Victoria (4.4%), Western Australia (2.9%), Queensland (2.8%), Tasmania (2.2%) and Northern Territory (-0.7%). Total sales (4.1%).

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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