THE Australian Retailers Association (ARA) said the seasonally adjusted rise (0.4 percent increase) in monthly retail trade figures (month-on-month) reported today by the ABS followed a 0.2 percent rise in December 2014.

ARA Executive Director Russell Zimmerman said retailers reported strong sales in the first week of January but experienced a tougher trading environment towards the end of the month.

“Boxing Day was huge for retailers this year and many consumers carried on bargain hunting well into the first half of January.

“Department stores struggled during December, but come January, it seems effective promotions were successful in drawing people in-store.

“While food retailing suffered during January (-0.7%) due to consumers often being away from home and choosing to eat out instead, the cafes, restaurants and takeaway food services sector enjoyed a nice boost in sales (2.0%). As always at this time of year, Aussies are out and about socialising with friends and family at their local eateries. 

“With many consumers returning to work from their Christmas holiday towards the end of January, there was a natural drop in discretionary spending which unfortunately impacted the clothing, footwear and personal accessory sector (0.1%).

“It will be interesting to see the results of February retail sales when this information is released next month, as Valentine’s Day usually provides retailers with another welcome boost in sales,” Mr Zimmerman said.  

In seasonally adjusted terms the states which displayed rises were Queensland (1.2%), Victoria (0.5%), Tasmania (1.9%) and Western Australia (0.1%). New South Wales was relatively unchanged (0.0%). There were falls in the Australian Capital Territory (-1.9%), the Northern Territory (-1.8%) and South Australia (-0.1%). 

MONTHLY RETAIL GROWTH (December 2014 – January 2015 seasonally adjusted)

Department stores (2.2%), Cafes, restaurants and takeaway food services (2.0%), Other retailing (1.0%), Household goods retailing (0.7%) Clothing, footwear and personal accessory retailing (-0.1%), Food retailing (-0.7%) and Total sales (0.4%).

Tasmania (1.9%), Queensland (1.2%), Victoria (0.5%), Western Australia (0.1%), New South Wales (0.0%),  South Australia (-0.1%), Northern Territory (-1.8%) and Australian Capital Territory (-1.9%). Total sales (0.4%).

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

Household goods retailing (8.7%), Cafes, restaurants and takeaway food services (5.0%), Clothing, footwear and personal accessory retailing (3.0%), Food retailing (2.2%), Other retailing (1.1%) and Department stores (1.1%). Total sales (3.5%).

New South Wales (5.2%), Victoria (3.6%), South Australia (3.1%), Queensland (2.4%), Western Australia (2.1%), Tasmania (1.9%), Australian Capital Territory (1.7%) and Northern Territory (-2.0%). Total sales (3.5%).

*

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.

ends

THE Reserve Bank of Australia’s (RBA) decision to keep the cash rate on hold today at 2.25 percent will support the retail industry for the time being but additional cuts are likely to be necessary.

The Australian Retailers Association (ARA)  Executive Director Russell Zimmerman said the current period of stable interest rates is a positive sign for both business and consumers.

“While the stable cash rate has positively impacted consumer spending, both the Federal Government and RBA must now do all that they can to ensure that retail trade is fully supported.

“Unfortunately, we have seen some concerning data lately including low wages growth and a weak international environment which has left consumers and businesses feeling a little nervous. The ARA therefore encourages the government to prioritise real productive reforms and for the RBA to consider further rate cuts next month to maintain consumer confidence,” Mr Zimmerman said. 

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.

ends

KEEPING  the community safe and maintaining personal privacy and freedoms will be canvassed at a public hearing on Wednesday, as part of an Inquiry into the use of section 313 of the Telecommunications Act 1997.

The House Standing Committee on Communications will hear evidence from two organisations that question the need for section 313 of the Act, which gives Australian government agencies the ability to obtain assistance from the telecommunications industry when upholding Australian laws.

Electronic Frontiers Australia (EFA) regards section 313 as a “dangerous impediment to Internet freedoms” and recommends that it be struck out completely, or, if retained, be restricted to law enforcement, national security agencies, and possibly oversight agencies such as ASIC.

The Australian Privacy Foundation (APF) is opposed to section 313 in its current form and believes its misuse has an adverse impact on Australians’ privacy. The APF says the section should be re-written to establish due process and appeal rights, and to remove conflicts and confusion between the diverse subject matter comprising law enforcement, crime prevention and national security.

Committee Chairman, Jane Prentice said, “The Committee is conscious of the wide range of views within the community about the need for balance between personal freedom and community protection—especially in the internet age. The Committee expects that by testing a range of views on the use of section 313, we will be able to find the right balance between the rights of citizens and the responsibilities of government agencies.”

Details of the hearing are as follows:

Date: Wednesday, 4 March 2015

Time :8:00 am

Venue:Committee Room 1R3, Parliament House, Canberra

Further information about the Inquiry, including the full terms of reference and how to prepare a submission can be obtained from the Committee’s website at www.aph.gov.au/section313 or from the Secretariat on (02) 6277 2352.

ends

VECCI Chief Executive Mark Stone said the organisation was urging the Parliament of Victoria to support the passage of the Back to Work Bill as a priority for the job creation benefit it will bring to Victoria.

"VECCI, Victoria's major business organisation, has consistently supported this important legislation as it will establish a $100 million fund to give payroll tax relief to businesses hiring unemployed youth, the long-term unemployed and retrenched workers into full time work," Mr Stone said.

"Employers will be eligible for a payroll tax rebate of up to $1,000 per employee to subsidise the cost of training, uniforms, transport and tools.

"We understand that the Upper House resistance involves the Greens being unwilling to support the Government’s attempt to facilitate job creation in Victoria, as well as minor resistance from the Opposition on reporting requirements; both of which should not be the main game here.

"Every attempt by any Government to improve the job prospects for young people should be debated on merit, not on red tape trivia. Debate over reporting only creates more regulation and cost for small business. Jobs and the ability to employ more people is what matters," Mr Stone said.

"Any opportunity to create jobs for young Victorians and reduce the red tape impost on business must be seen as a step forward.

"VECCI hopes the two major parties resolve their differences quickly to give the Back to Work strategy a chance to succeed."

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

ends