PEAK retail industry body the Australian Retailers Association (ARA) said the seasonally adjusted fall (-0.5 percent) in monthly retail trade figures (month-on-month) reported by the ABS followed a 0.2 percent rise in April 2014.

Year on year retail growth fell 4.6% in May 2014, seasonally adjusted, compared to May 2013.

ARA Executive Director Russell Zimmerman said May trade results -0.5% were disappointing for retailers. Retailers have been enduring struggles with the unexpected change in weather and while sudden winter weather showed glimpse of hope for winter stock, this was not sufficient as resulted by the buying behaviours of consumers.

“Retailers were hoping that Mothers Day in May would lift buying behaviours and although this did lift some sales, it did not compete with the unseasonably warm weather which caused consumers to hold off purchasing winter products.

“Department stores experienced a tough month during May (fall of -2.6%) and clothing, footwear and personal accessory retailing (fall of -2.3%). The unseasonably warm weather in May caused consumers to hold off on purchasing their winter goods. Retailers particularly in fashion experienced major struggles due to this.

“The effects of the Federal Budget announcement has obviously slowed down retail trade and lowered consumer confidence. The Federal Government must act quickly to ensure that retail trade does not suffer as we gear up toward the Spring Summer racing season and as retailers start looking towards stocking up for Christmas.

“According to the Australian Retail Index (delivered by BDO and Retail Express), retail sales for the month of June are very patchy and this would indicate that consumers have not returned to their former spending patterns from before the budget. This does not auger well for the next few months.

“With the added on costs that retailers have taken a hit on in July, (Minimum  wage increase the last transition of the Modern award for penalty rates, and 20 year olds being paid as adults after six months employment) retailers will need to review their costs such as labour and look to reducing costs wherever possible.

“Turnover fell in Victoria (-1.1%), followed by New South Wales (-0.5%), Western Australia (-0.3%), Queensland (-0.1%), the Australian Capital Territory (-0.3%) and Tasmania (-0.2%). These falls were partially offset by rises in South Australia (0.2%) and the Northern Territory (0.4%).

“After this week’s interest rates remaining stagnant, it is clear that the Reserve Bank of Australia (RBA)  must  assist and stimulate the economy by reducing interest rates at its meeting in August as slow retail trade being endured by retailers is doing little to assist retailers making a profit and the SME sector will feel this the most.

MONTHLY RETAIL GROWTH (April 2014 – May 2014 seasonally adjusted)

Cafes, restaurants and takeaway food services (0.1%), Food retailing (0.1%), Other retailing (-0.4%), Household goods retailing (-0.9%), Clothing, footwear and personal accessory retailing (-2.3%) and Department stores (-2.6%).  Total sales (-0.5%).

New South Wales (-0.5%), Northern Territory (0.4%), South Australia (0.2%), Queensland (-0.1%), Tasmania (-0.2), Western Australia (-0.3%), Australian Capital Territory (-0.3%) and Victoria (-1.1%), and Total sales (-0.5%).

YEAR-ON-YEAR RETAIL GROWTH (May 2013 – May 2014 seasonally adjusted)

Cafes, restaurants and takeaway food services (11.6%), , Food retailing (5.2%), Household goods retailing (3.8%), Clothing, footwear and personal accessory retailing (2.7%), Other retailing (1.5%) and Department stores (-1.9%). Total sales (4.6%).

Tasmania (8.7%), New South Wales (7.3%), Victoria (5.4%), Queensland (3.4%), South Australia (2.5%), Western Australia (-0.7%), Australian Capital Territory (-0.8%) and Northern Territory (7.4%). Total sales (4.6%).

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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RETAIL figures recorded its biggest monthly fall in more than a year when retail sales for May were released today, according to analysis from the Australian National Retailers’ Association (ANRA).

The Australian Bureau of Statistics (ABS) released retail figures today showing a decrease of 0.5 percent in May compared to April. April’s figure was also revised down to record the first fall in eleven months (down 0.1%). Throughout the year to May retail turnover rose 4.6 percent.

ANRA CEO Margy Osmond said the Abbott government’s first Budget has halted much of the momentum the sector generated over the past year.

“Today’s figures are exactly what retailers were hoping to avoid. The discretionary spend categories have been hit the hardest with consumers pulling back on spending in the lead up to and following the Federal Budget.

“The biggest fall was seen in department stores (down 2.6 per cent), erasing any gains recorded in April. Clothing, footwear and personal accessories, other retailing and household goods also recorded falls in May.

“This is the third month in a row the clothing, footwear and personal accessories, household goods and other retailing categories have recorded decreases.

“Food continued its resilience, recording the only rises amongst the categories in May up 0.1 per cent and cafes, restaurants and takeaway food services also up 0.1 percent.

“Food has now outperformed non-food for seven of the last twelve months. Year-on-year food is up 6.8 percent while non-food is up only 2.1 per cent and on shaky ground.

“Looking to the states and territories, Victoria recorded the biggest fall – down 1.1%. Contributing to the state’s drop in May was recreational goods (down 10%), speciality foods (down 6%) and department stores (down 5%).

“It’s also the fifth consecutive month of declining sales for Western Australia and it isn’t a rosy picture for the ACT either, where retail sales have declined for six out of the last seven months.

“Year-on-year, Tasmania continues to be the strongest performer amongst the states and territories – up 8.8 per cent. The ACT was the worst performer – down 0.9 per cent.

“Consumers are showing all the signs in May of being spooked by the Federal Budget and its cuts to family benefits. We normally see some softening of confidence after a Budget with a pick in the June figures.  With many aspects of the Budget facing a battle to get through the Senate and ongoing uncertainty, we wouldn’t expect retail sales to bounce back for a few months yet,” said Ms Osmond.

www.anra.com.au

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The Queensland Resources Council (QRC) welcomed the June release of the State Government’s Ports Strategy, which shows an environmentally responsible and sustainable approach to future development, and in particular alongside the iconic Great Barrier Reef.

The strategy is the Queensland Government's blueprint for managing and improving the efficiency and environmental management of the state's port network over the next decade. 

QRC Chief Executive Michael Roche said the strategy’s focus on driving economic growth through five long-established Priority Port Development Areas (PPDAs) recognised the export sector’s proud record of working responsibly alongside the Great Barrier Reef for many decades.

"The Queensland Ports Strategy is supported by the resources industry and restricts new port development adjacent to the reef, and containing development to the long-running existing ports of Abbot Point; Gladstone; Hay Point and Mackay; and Townsville," Mr Roche said.

"The incremental expansion of these ports has been fundamental to Queensland’s economic and social progress over more than a century.

"Their continuing operation under the scrutiny of state, federal and international environmental agencies is fundamental to Queensland’s global trade in coal, minerals, gas, sugar and grain."

Exports through ports adjacent to the Great Barrier Reef were worth $40 billion in 2012-13.

The latest benchmark for responsible port development quashes the false claims put forward by the WWF in its latest reef scare campaign.

"Once again the anti-resources activists have been caught out in their latest scaremongering campaign that features old re-runs of Bob Irwin’s Fight for the Reef TV advertisements," Mr Roche said.

"All of the false claims put forward in the ad – which we have seen before – are wrong, including the number of coal ships that will export from the ports and claims of fast-tracking mega industrial ports.

"The WWF ads have Mr Irwin claiming that 7,000 coal ships will be 'crossing the reef'.

"No coal ships cross the reef - they in fact travel through designated naturally occurring shipping channels.

"The official forecast from the Australian Maritime Safety Authority is that by 2020 some 2,450 coal ships will be using the coal ports in the reef zone.

"The Ports Strategy also sends a clear message that UNESCO should be in no doubt over the commitment of the Queensland Government and industry to deliver the twin goals of economic growth and environmental protection," Mr Roche said.

"In this day and age, we don’t have to sacrifice one for the other, as many decades of productive co-existence have demonstrated."

www.qrc.org.au

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VECCI Chief Executive Mark Stone said the chamber has welcomed the announcement by the Victorian Minister for Planning, Matthew Guy, that approval has been given for the eastern section of the East West Link project. 

"VECCI has long advocated for this vital piece of infrastructure to be built in its entirety, including the port connection, and this announcement is another step towards this becoming a reality," Mr Stone said.

"As reinforced in our Taking Care of Business state election agenda, VECCI ranks East West Link as the number one infrastructure project for Victoria. 

"By reducing congestion it will increase the capacity of Melbourne’s transport network, unlock productivity gains for business and improve social amenity, particularly in Melbourne’s expanding residential areas."

vecci.org.au

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the peak body for employers in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

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