THE Australian Retailers Association (ARA) said the trade figures released today by the Australian Bureau of Statistics (ABS) illustrate a healthy lead up to the 2016 Christmas period with a year-on-year growth of 3.27% seasonally adjusted.

ARA Executive Director Russell Zimmerman said this year-on-year growth is a positive sign for the industry as retailers remain hopeful that the ARA and Roy Morgan predicted pre-Christmas sales figure of $48.1 billion over the Christmas trading period (November 15 to December 24, 2016) will be achieved.

“We won’t be able to confirm the actual pre-Christmas spend until December retail figures are released next month. However, after speaking with retailers across the country, many reported a strong start to Christmas sales in November due to many consumers getting on top of their holiday shopping early.”

With November leading into holiday season, consumers likely spent more time out and about enjoying the good weather and social drinks as reflected in liquor sales growth of 4.85% year-on-year.

“The Takeaway Services category also demonstrated robust growth, taking the lead again with a 9.91% increase year-on-year reflecting consumer uptake of innovative services and products in the space,” Mr Zimmerman said.

“Another category experiencing a strong year-on-year increase was Clothing, Footwear and Accessories at 5.82%. With the warmer weather approaching and Christmas around the corner, consumers appeared to have hit the shops to update their wardrobes with the early summer fashion trends.”

Despite the closure of a number of Masters stores across Australia, other hardware retailers, particularly Bunnings, lead the charge for another exceptional growth in Hardware at 10.15% year-on-year.

New South Wales proves to be the strongest of the states with a 4.25% growth year-on-year, while all other states remain steady (VIC 3.45%, QLD 3.67%, TAS 3.72%, SA 2.82%, ACT 6.44%). As expected, the mining jurisdictions, WA (-0.57%) and NT (0.31%), reflected a weakness in sales due to the downturn in resources in these regions.

“Though these figures don’t necessarily reflect Christmas sales, they generally provide a strong indication as to what we can expect for retail sales over the festive season,” Mr Zimmerman said.

“I’m confident December figures will prove to be strong as many consumers, including myself, usually leave their Christmas shopping until the last minute,” he added.

MONTHLY RETAIL GROWTH (October 2016 – November 2016 seasonally adjusted)

Household goods retailing (0.2%), Other retailing (-0.1%), Food retailing (0.4%), Clothing, footwear and personal accessory retailing (1.7%), Cafes, restaurants and takeaway food services (-0.8%) and Department stores (-0.3%). Total sales (0.2%). 

Northern Territory (0.3%), South Australia (-0.4%), Australian Capital Territory (0.1%), Victoria (0.4%), Tasmania (0.1%), Western Australia (-0.6%), New South Wales (0.5%) and Queensland (0.1%).

YEAR-ON-YEAR RETAIL GROWTH (November 2015 – November 2016 seasonally adjusted)

Household goods retailing (3.08%), Cafes, restaurants and takeaway food services (4.99%), Food retailing (3.07%), Clothing, footwear and personal accessory retailing (5.83%), Other retailing (10.55%) and Department stores (-3.21%). Total sales (3.28%).

New South Wales (4.25%), South Australia (2.82%), Tasmania (3.72%), Victoria (3.45%), Australian Capital Territory (6.44%), Western Australia (-0.57%), Queensland (3.67%) and Northern Territory (-0.31%).

About the Australian Retailers Association

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $300 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 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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THE Institute of Public Accountants (IPA) has voiced its support for the passing of the proposed Misuse of Market Power Bill.

“To date, the misuse of market power provision has not adequately protected small business, and by extension consumers, from the predatory actions of companies with substantial market power,” said IPA chief executive officer, Andrew Conway.

“Australia’s concentrated market structure means that some markets are not competitive and, where collective bargaining is not possible or sufficiently expeditious, small or medium sized businesses are especially vulnerable to exploitation or exclusion by firms with substantial market power.

“The IPA has continued to advocate for an ‘effects test’ to be introduced. So we are pleased that the Bill is consistent with the Harper Review in relation to misuse of market power and importantly, provides that a corporation with substantial market power must not engage in conduct having the purpose or likely effect of substantially lessening competition in that or any other market.

“The most significant deficiency with the current test is that, through narrow judicial interpretation of the phrase ‘take advantage’, it does not catch conduct by firms with market power, when the same conduct could have been carried out by a firm without market power.

“This fails to recognise that conduct capable of being engaged in by firms without market power has a greater propensity to foreclose the market and produce economic harm when it is engaged in by firms with market power.

“The proposed s46(1) in the Misuse of Market Power Bill is significantly more convoluted than that proposed in the Harper Report.  This has resulted from attempts to define, in some detail, the market or markets in which the substantial lessening of competition must occur.

“In particular, it specifies that the substantial lessening of competition must occur in the market in which substantial market power is held, or any other market in which it, or a related body corporate, supplies or acquires goods or services.

“The IPA believes this amendment to be unfortunate and that it unnecessarily complicates the law.  However, as it is not envisaged that this change will significantly diminish the scope of the provision, it does not alter the IPA’s support for the Bill.

“The Harper Report recommendation corrects the two key deficiencies in the existing legislation by removing the ‘take advantage’ element; and, expanding the focus of the provision to capture conduct having the effect of substantially lessening competition in a market.

“The proposed changes to section 46 as reflected in the Bill, represent a sensible and long overdue improvement to Australia’s misuse of market power laws.  Importantly, the shift of the focus to competition rather than competitors will help ensure that unilateral conduct by firms with market power cannot be permitted whether its design or effect is to substantially lessen competition,” said Mr Conway.

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than 35,000 members and students in over 80 countries.  The IPA Group is the largest SME focused accountancy organisation in the world. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.  The IPA was recognised in 2012 as Australia’s most innovative accounting organisation and listed in the top 20 in the 2012 BRW Most Innovative Companies List. 

pubblicaccountants.org.au

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THE Joint Committee of Public Accounts and Audit has launched inquiries into the 2015-16 Defence Major Projects Report, and Defence Sustainment Expenditure.

The JCPAA is a central committee of the parliament with the power to initiate its own inquiries on the Commonwealth public sector.

The Committee has inquired into the Defence Major Projects Report on an annual basis since 2009, and will continue its oversight of the reporting of major Defence acquisitions through its inquiry into the 2015-16 Major Projects Report, which it is anticipated will be published shortly.

The inquiry into Defence Sustainment Expenditure will be considered in parallel to the Committee's inquiry into the Major Projects Report, and will examine matters of finance and public administration. Defence sustainment includes the provision of ongoing parts, supplies and services to Defence systems and assets. This inquiry has been readopted by the Committee after it lapsed following the prorogation of the 44th Parliament.

The Committee invites submissions to the inquiries by Friday, 17 February 2017, noting each inquiry has separate terms of reference. Public hearings will be held in late March 2017. Further information about the inquiries can be accessed via the Committee’s website.

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