Business News Releases

Launch of Commonwealth Contracting inquiry

THE Joint Committee of Public Accounts and Audit has launched a new inquiry into Commonwealth Contracting. The inquiry is based on the Auditor-General’s Information Report—Australian Government Procurement Contract Reporting(Audit Report No. 19, 2017–18).

The Committee’s inquiry will examine matters raised by the Auditor-General’s insights on contract information reported over a five-year period (2012–13 to 2016–17) in AusTender — the Australian Government’s centralised publication of contract notices. Particular areas included:

  • the volume and value of Government procurement contracts;
  • entities’ procurement contract behaviour as it relates to the timing of procurements during each financial year; and
  • reporting on the number and value of contracts undertaken with Small to Medium Enterprises.

The Committee invites submissions to the inquiry addressing the terms of reference. Submissions are requested by 16 February 2018, with public hearings held from February 2018. Complementary Submission Guidance, which highlights the Committee’s five areas of focus, has also been prepared to assist submitters with their respective input to the inquiry.

Committee Chair Senator Dean Smith said Commonwealth contracting was worth $47.4 billion in 2016–17 and was an area of public expenditure that deserved close and constant scrutiny.

“Effective procurement contract behaviour is vital and transparency in contract reporting is critical so that the Government can assure itself and the Australian public that entities are achieving their objectives in an efficient and cost-effective manner,” Senator Smith said.

Interested members of the public may wish to track the committee via the website

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Aussies serve up $20 billion feast this Christmas

WITH Australian consumers expected to spend over $20 billion on grocery items this Christmas, the Australian Retailers Association (ARA) believes physical retailers will start to see a vast increase in foot traffic across local and inner-city stores this weekend as Australians stock up for their Christmas celebrations.

Russell Zimmerman, Executive Director of the ARA said with foot traffic increasing 7.5 percent week-on-week across bricks-and-mortar stores, the ARA believes Australians will increase their food spending by 3.27 percent during the Christmas period.

“Although more and more consumers are buying their Christmas groceries online, online retailers can only do so much leading up to the big day,” Mr Zimmerman said.

“Shoppers who have not yet ordered their Christmas groceries online will instead be heading into town to spend big at food retailers across the country to ensure they are ready for their Christmas feast.”

Bryan Skepper, Sydney Fish Market general manager, said they are expecting more than 100,000 shoppers to visit the Sydney Fish Market between 5am on Saturday 23 December to 5pm on Sunday 24 December to source their fresh seafood for this year’s Christmas lunch.

“The 36-Hour Seafood Marathon is a long-standing tradition where visitors can collect more than just seafood; they can source advice on the best wines and beer to pair with their meal from the bottle shop; or pick up fresh bread from the bakery.”

With extended trading hours in place, the ARA believes the festive season will drive supermarket sales up in the last weeks of December, exceeding last year’s sales by 3.27 percent.

Michael Jackson, Director of Merchandising, Marketing & Customer Insights at Endeavour Drinks Group, said any Christmas lunch wouldn’t be complete without an excellent beverage selection.

“Rosé continues to be the fastest growing category in wine this year, but we believe Aperol and Campari Aperitifs will be the biggest trend in spirits this summer,” Mr Jackson said.

“While the Great Northern continues to drive the mid strength category for beer lovers, Pure Blonde Cider is leading a change to the Cider category with its focus as a lighter and healthier drink.”

With only two weeks until Christmas, and foot traffic on the rise, the ARA urge retailers to be prepared for a surge in shopper traffic this weekend as Australians stock up for their Christmas celebrations.

“With consumers to hit the stores late this week we also ask that shoppers remain patient as retail staff manage the increased number of customers,” Mr Zimmerman said.

To view the ARA and Roy Morgan’s Annual Pre-Christmas Sales Predictions for 2017 click here.

 

ARA ROY MORGAN PRE-CHRISTMAS SALES PREDICTIONS 2017

November 15 – December 24, 2017

 

2017 Pre-Christmas Sales Growth by Category

State

2016 Pre-Christmas actual results ($mil)

2017 Forecast Pre-Christmas sales ($mil)

Predicted Growth

FOOD

19643

20284

3.27%

HH GOODS

8503

8704

2.37%

APPAREL

3869

3890

0.54%

DEPARTMENT STORES

2928

2957

0.99%

OTHER

6911

7184

3.96%

HOSPITALITY

6854

7052

2.89%

NATIONAL

48708

50073

2.80%

[ARA / ROY MORGAN]

 

2017 Pre-Christmas Sales Growth by State

State

2016 Pre-Christmas actual results ($mil)

2017 Forecast Pre-Christmas sales ($mil)

Predicted Growth

NSW

15692

16265

3.65%

VIC

12267

12742

3.87%

QLD

9838

9951

1.15%

SA

3164

3266

3.23%

WA

5386

5434

0.89%

TAS

967

996

3.01%

NT

499

508

1.77%

ACT

895

911

1.76%

NATIONAL

48708

50073

2.80%

[ARA / ROY MORGAN]

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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Time running out to nominate for awards

MINISTER for Veterans’ Affairs Dan Tehan said today time was running out for businesses to nominate for the inaugural Prime Minister’s Veterans’ Employment Awards, closing on December 22.

The Prime Minister’s Veterans’ Employment Awards will showcase leading Australian businesses that are employing veterans as well as former Australian Defence Force (ADF) personnel making significant contributions to their workplace.

The winners will be announced at a gala award ceremony to be held in Canberra and attended by Prime Minister Malcolm Turnbull.

Mr Tehan said the awards celebrate the skills and talents former ADF personnel bring to a job as well as promoting the Australian businesses that were employing veterans.

“I strongly encourage Australian businesses of all sizes to nominate for an award and help honour the service and sacrifice of the men and women who defend our nation by celebrating their ongoing contribution to the Australian community,” Mr Tehan said.

“The awards will highlight the Australian businesses that are recognising these skills and utilising them to be successful. They will encourage other businesses to think about what a veteran could offer their workplace.

“Nominating your business for an award is a fantastic way to raise awareness about the positive contributions our veterans are making after they leave the ADF.

“Each year, around 5,200 people leave the ADF and the Turnbull Government is working to ensure they transition smoothly to civilian life and find meaningful employment.

“Over the course of their careers in Defence, our ADF personnel acquire qualities that are in high demand. They are leaders, problem solvers and work well in teams.”

The Government has also established an Industry Advisory Committee (IAC) on Veterans’ Employment, comprising representatives from a range of industries, to develop strategies and best practice for employing and retaining veterans.

Nominations for the awards close on December 22. Visit www.veteransemployment.gov.au/awards to enter.

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The power of education: from surviving to thriving

THE House Standing Committee on Indigenous Affairs has tabled its long-awaited report into Indigenous education.

The inquiry, spanning two parliaments, provides an in-depth look into the educational opportunities available to Aboriginal and Torres Strait Islander students—considering both the challenges and achievements of students, schools, organisations, and communities across Australia. The committee is led by the Chair, Melissa Price MP.

“Education provides opportunities and choices for the future. Evidence shows that improving education outcomes is critical to improving quality of life for a community,” Ms Price said.

“There is no shortage of examples of Indigenous people who have worked hard to achieve significant education and employment outcomes, often overcoming substantial disadvantage to do so. Nonetheless, the gap in attendance and education outcomes between Indigenous and non-Indigenous students is an unavoidable fact that must be addressed.”

The report makes a number of recommendations regarding addressing barriers to achievement; improving cultural safety in schools and boarding facilities; ensuring gender equity of engagement and support programs; strengthening teaching and use of effective pedagogies; improving boarding facilities and standards; and improving access to financial support such as ABSTUDY.

As the Chair noted, “All children have a right to feel safe, included, valued and supported both at home and at school. So, the committee hopes that, by schools working together and building relationships with students, their families and communities, the barriers to achievement will diminish and Indigenous students will finally be able to grasp all of the opportunities afforded to them.”

The report has been published on the committee’s website.

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Retailers decking the halls with online sales this Christmas

WITH the Australian Retailers Association (ARA) and Roy Morgan Research predicting Australians to spend more than $50 billion over the Christmas trading period from November 15 to December 24, 2017, the ARA believe online platforms will be a driving force for retail sales this Christmas.

The ARA and Roy Morgan forecast Aussie shoppers to spend over $7 billion in the ‘Other Retailing’ category this festive season, and expect consumers to spend 3.96% more on this category during the Christmas trading period.

Russell Zimmerman, ARA Executive Director, said the ARA’s combined research with Hitwise and Neto have found an overwhelming shift in Australian shoppers turning to online retail platforms during this busy season.

“With online shopping accounting for more than 7% of total retail sales, the ARA and Hitwise saw 12.3 million active consumers use online platforms to finalise their Christmas purchases in 2016,” Mr Zimmerman said.

“Due to the ease and convenience online platforms provide Australian shoppers in the 24-hour marketplace, the ARA estimates online purchases will account for 13% of overall retail sales in the next five years.”

With recent Hitwise data illustrating a 55% year-on-year increase in online visits during Boxing Day 2016, and searches for this year’s Black Friday more than doubling year-on-year, the ARA believe consumers will continue to shift their spending to online platforms.

“As online retail is growing at 5% every year, our recent research with Hitwise illustrates more and more Australians are searching for Christmas gifts online, with electronic devices such as PlayStations, Xboxes and iPads ranking in the top three search terms on eBay this year,” Mr Zimmerman said.

“Search terms for children’s toys and games are also gaining more traction year-on-year with some of the hottest products on eBay during November including Lego, Elf on the Shelf and Nintendo Switch.”

Chris Harley, Head of Research at Hitwise Australia, said Hitwise have seen visits to the ‘Shopping and Classifieds’ industry hit a staggering 1.004 billion visits during November 2017.

“We’ll continue to see strong visitation in this category right up to the 19th/20th December when we see a traditional slight fall in visits due to the impact of customers needing products delivered prior to Christmas.” Mr Harley said.

Ryan Murtagh, Founder and CEO of Neto, said Neto’s latest State of E-Commerce Report identified a significant growth in online gifting this year, with the average retail basket size increasing by 16% in 2017.

“Although 40% of consumers state clothing, shoes, handbags and accessories are their most frequent online purchase, sports and recreation was Australia’s second fastest growing industry in 2017 with average monthly sales growing by 39% this year,” Mr Murtagh said.

“Given the ever-increasing health consciousness of Australians, coupled with the onset of summer, we will likely see a trend towards outdoor and health-centric gifts over Christmas.”

With basket size increasing, and 5,000 merchants now offering Afterpay, Mr Zimmerman said those merchants who offer Buy Now, Pay Later options will have a distinct advantage this Christmas trading period.

“Transactions via Buy Now, Pay Later options have increased by 147% this year, therefore, we can only expect online retail sales to rise during Christmas and throughout the new year,” Mr Zimmerman said.

Follow the links to view ARA and Roy Morgan’s 2017 Annual Pre-Christmas Sales Predictions, Neto’s 2017 State of eCommerce Report and Hitwise’s Pre-Christmas Shopping Trends and Products.

ARA ROY MORGAN PRE-CHRISTMAS SALES PREDICTIONS 2017

November 15 – December 24, 2017

2017 Pre-Christmas Sales Growth by Category

State

2016 Pre-Christmas actual results ($mil)

2017 Forecast Pre-Christmas sales ($mil)

Predicted Growth

FOOD

19643

20284

3.27%

HH GOODS

8503

8704

2.37%

APPAREL

3869

3890

0.54%

DEPARTMENT STORES

2928

2957

0.99%

OTHER

6911

7184

3.96%

HOSPITALITY

6854

7052

2.89%

NATIONAL

48708

50073

2.80%

[ARA / ROY MORGAN]

2017 Pre-Christmas Sales Growth by State

State

2016 Pre-Christmas actual results ($mil)

2017 Forecast Pre-Christmas sales ($mil)

Predicted Growth

NSW

15692

16265

3.65%

VIC

12267

12742

3.87%

QLD

9838

9951

1.15%

SA

3164

3266

3.23%

WA

5386

5434

0.89%

TAS

967

996

3.01%

NT

499

508

1.77%

ACT

895

911

1.76%

NATIONAL

48708

50073

2.80%

[ARA / ROY MORGAN]

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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