THE Australian Retailers Association (ARA) said January 2019 trade figures released today by the Australian Bureau of Statistics (ABS) indicates a conservative post-Christmas trade, with a 2.66 percent total growth year-on-year.

Russell Zimmerman, executive director of the ARA, said the ARA and Roy Morgan post-Christmas sales predictions are softer than the actual post-Christmas trade results released today by the ABS.

“As we forecasted a 3.1 percent increase in post-Christmas trade and predicted Australians would spend almost $18.3 billion from December 26, 2018 to January 15, 2019, today’s figures are slightly less than what we anticipated,” Mr Zimmerman said.

“While December sales started off strong, it seems to have slightly lowered for January. Despite today’s amicable figures, the ARA will continue to partner with Roy Morgan annually to deliver the only professionally researched retail industry predictions.”

In light of this, categories showing considerable growth in January included; Food retailing (4.12%), Cafés and restaurants (3.15%),which was strongly supported by Supermarkets (4.52%).

“While consumer sentiment has been at the forefront of media discussion recently, it is pleasing to see that the Cafés, restaurants and takeaway category has recorded strong consecutive growth over the last three months,” Mr Zimmerman said.

“This could be indicative of consumers feeling more confident to spend on small luxuries and we hope this trend will continue to increase and spill into other retail categories across the retail sector.”

While Clothing, Footwear and Personal Accessories received respectable growth in January,  unfortunately, Department stores (-1.38%) noted a decrease in year-on-year sales. However, Mr Zimmerman said he is optimistic that these figures will improve over the coming months.

“Although Department stores saw a decrease in year-on-year growth for January, it’s important to note that Myer had a return on profitability for the first 6 months of this year ” Mr Zimmerman said.

Across the nation, New South Wales (0.65%) and Tasmania (0.42%) recorded the strongest year-on-year growth of all the states. While South Australia (0.12%) and Victoria (0.11%) showed steady year-on-year growth, Western Australia (-0.34%), Australian Capital Territory (-0.40%), Queensland (0.46%) and Northern Territory (-1.21%) received negative figures in January.

“Tasmania, Victoria and Australian Capital Territory indicated a strong year-on-year growth in January and it is promising to see Western Australia continuing to record positive numbers after a period of sustained weakness,” Mr Zimmerman said.

“However, it is concerning to see that the Northern Territory have yet again showed negative figures for the fifth consecutive month in row, after recording such strong results last year from March to August.” 

Monthly Retail Growth (December 2018 – January 2019 seasonally adjusted) 

Other retailing (0.68%), Cafés, restaurants and takeaway food services (0.26%), Household goods retailing (-0.05%), Clothing, footwear and personal accessory retailing (-0.30%), Food retailing (0.31%), and Department stores (-2.12 %).

New South Wales (0.65%), Tasmania (0.42%) South Australia (0.12%), Victoria (0.11%), Western Australia (-0.34%), Australian Capital Territory (-0.40%), Queensland (-0.46%), and Northern Territory (-1.21%).

Total sales (0.11%).

Year-on-Year Retail Growth (January 2018 – January 2019 seasonally adjusted)

Food retailing (4.12%), Other retailing (3.50%), Cafés, restaurants and takeaway food services (3.15%), Clothing, footwear and personal accessory retailing (2.27%), Household goods retailing (-0.66%) and Department stores (-1.38%).

Tasmania (4.68%), Victoria (4.23%), Australian Capital Territory (3.77%), New South Wales (2.67%), Queensland (2.10%), South Australia (1.52%), Western Australia (0.57%) and Northern Territory (-2.73%).

Total sales (2.66%). 

About the Australian Retailers Association:
Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $320 billion-dollar sector, which employs almost 1.3 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,800 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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ENERGY NETWORKS Australia CEO Andrew Dillon today welcomed the Western Australian Government’s announcement of an Energy Transformation Plan.

“The power prices consumers pay are linked to the total system cost, so it makes sense to consider how the co-ordinated end-to-end power system of the future should look,” Mr Dillon said.

“It’s a positive step that a government is thinking beyond short-term rebates and starting to plan for how we manage an integrated low emissions electricity system.

“Energy Networks Australia will tomorrow be launching the first of a set of guidelines for safe, consistent and efficient connection of solar, storage and battery devices to the grid.”

Distributed energy resources (DER), which include household solar panels and batteries, present challenges to electricity grids that were not designed to handle individual energy sources.

This is why Energy Networks Australia and the Australian Energy Market Operator are working on the Open Energy Networks project. The project is investigating how best to integrate DER into Australia's electricity grid.

“Open Energy Networks is developing options to improve the electricity system to ensure household solar and storage work in harmony with a grid that was never designed for two way energy flows,” Mr Dillon said.

“As we move to greener grids, this work will help ensure reliable supply and lower household power bills for all customers.

“We look forward to seeing more detail about the WA Government’s planning program for DER integration.”

More information about the National Connection (DER) guidelines can be found here.

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BOTH major parties need to "re-commit to policy agendas for economic growth following the worse than expected performance by the Australian economy in the closing months of last year," according to Master Builders Australia CEO Denita Wawn. 

“The latest GDP figures from the ABS show that the economy grew by just 0.2 percent during the December 2018 quarter, a weaker result than expected,” she said. 

“Australians know that we need strong economic growth to boost living standards, provide jobs and provide the certainty and incentive for business to keep investing.

“As the nation’s second largest industry, building and construction is already a major driver of growth in the economy but worryingly, a number of components of the economy actually shrank during the quarter including new home building activity, home renovations and commercial and civil construction. 

“We want both major parties to show their commitment to an economic growth at the upcoming Federal Budget so that the slide can be halted and the policies for a new period of economic growth delivered,” Ms Wawn said. 

 “As the economy’s largest provider of full-time jobs, construction must be at the centre of the recovery. Government needs to explore ways to reduce the burden on an already heavily taxed sector, and look accelerating public works programs. 

“We want to see more shovel ready infrastructure projects out the door for construction to commence not just languishing on lists.

“We want policies that will actually increase the construction of new homes and jobs in the residential building sector rather than taking them backwards,” Ms Wawn said. 

“Stimulating building activity not only boosts demand over the short term. Well-targeted construction projects would expand the economy’s creative potential for decades to come.

“A strong construction industry builds a strong economy,” Ms Wawn said.

www.masterbuilders.com.au

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THE maritime union has welcomed Labor’s commitment to create a government-owned National Fuel Reserve, describing it as an essential step to protect Australia from natural disasters or global crisis that could disrupt oil supplies.

The Maritime Union of Australia said Australia has been in breach of the the International Energy Agency’s 90-day fuel stockholding obligation since March 2012, with figures released last month showed the country had just 22 days of petrol and 17 days of diesel on hand.

MUA national secretary Paddy Crumlin said the fuel reserve commitment, along with Labor’s previous announcement of a National Strategic Fleet that will include oil tankers and gas carriers, were vital steps required to safeguard the security of an island nation that is reliant on fuel imports.

“For nearly seven years, Australia has been in breach of the IEA rules that are in place to ensure member nations have the capacity to weather unforseen disruptions to the global supply chain,” Mr Crumlin said.

“Despite countless reports warning about Australia’s lack of fuel security and the urgent need for action, the Abbott, Turnbull, and now Morrison Coalitions Governments have done absolutely nothing.

“Australia is the only developed oil-importing country without government-controlled stocks of crude oil or refined petroleum products, which has become more and more of an issue as the proportion of our fuel that is imported has risen to well over 90 percent.”

The MUA last year commissioned a report by shipping expert John Francis, Australia’s Fuel Security – Running on Empty, which found that Australia now relies on the equivalent of almost 60 full-time fuel import tankers to keep us supplied with petrol, diesel and jet fuel.

“This research concluded that the Australian economy would grind to a halt within weeks of a major crisis in the region that interrupted fuel shipments,” Mr Crumlin said.

“It also found that Australia’s reliance on foreign flagged tankers removed any opportunity for the Commonwealth to requisition national flag tankers if necessary to secure imports or coastal distribution requirements following major economic or geopolitical disruptions.

“The commitment that a Shorten Government will both create a national fuel reserve, along with a strategic fleet that includes Australian-flagged oil tangers, provide a welcome end to years of political inaction that continues to put all Australians at risk.

“The public now have a stark choice between the Liberal National Government, which has done nothing to address fuel security, and a Labor Opposition with a clear vision for protecting Australia’s economic security by creating a government-owned fuel stockpile and Australian oil tankers to bring it here.”