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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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Interim Report on regional development and decentralisation tabled

THE Select Committee on Regional Development and Decentralisation today tabled its Interim Report.

The Committee Chair, Dr John McVeigh MP, said: “this report provides an update on the work the Committee has undertaken to date, and the work it intends to complete in coming months.

“The Committee is encouraged by the response to its inquiry so far, with over 180 written submissions received, and 115 people appearing at public hearings held in regional and rural locations across the country.  In particular, the Committee is encouraged by the cross section of people from regional and rural communities who have shared their experiences and insights regarding best practice approaches to regional development, including ways to better support the social and economic future of their communities. There is however, more work to be done.

The Committee plans to hold further public hearings in Queensland, New South Wales and the Australian Capital Territory in early 2018, before tabling a final report later in the year.

The Committee’s Resolution of Appointment requires an Interim Report be tabled no later than 31 December 2017.  It follows the tabling of an Issues Paper by the Committee in August 2017.

The Interim Report and the Issues Paper can be found on the Committee’s website.

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

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ATO Annual Report 2017 performance review

THE House Committee on Tax and Revenue has resolved to commence its annual review of the Commissioner of Taxation’s Annual Report 2016–17.

As Australia’s principal revenue collection body, the annual report is a key mechanism for the ATO’s accountability to the Government and the Australian community. The 2017 annual report was tabled in Parliament in October in accordance with section 46 of the Public Governance, Performance and Accountability Act 2013. 

Chair of the Committee Mr Kevin Hogan MP observed that the Committee’s annual report review process has broadened in scope since the formation of the Committee in May 2013 and, accordingly, is now being conducted once a year instead of biannually.

“The Committee’s examination of the ATO report not only enables Members to monitor technical advances under the agency’s Reinvention Program but also to probe more challenging aspects of other ATO operations, both internal and external,” Mr Hogan said.

“The Committee’s inquiry may cover, for example, the ATO’s fraud control management in the wake of Operation Elbrus, the administration of the Australian Business Register and business debt, and the results of the ongoing audit of cash dominant industries.”

To facilitate optimum feedback on the ATO’s administration of these and other matters discussed in the Annual Report, the Committee invites submissions to be lodged by 2 March 2018.

Public hearings for the inquiry will be held with the Commissioner of Taxation and the Inspector-General of Taxation, and with tax advisory bodies, other stakeholders and members of the public in early 2018.

The 2017 Annual Report of the Australian Taxation Office is available at: https://www.ato.gov.au/About-ATO/Annual-report-2016-17/

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

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Innovation leaders to tackle global problems on Monday at RMIT

HOW innovation can free our oceans from plastics, make our food more secure and lead to better energy solutions will be on the agenda at RMIT University  next Monday.

Practitioners and experts from around the globe will gather for the 2017 Asia-Pacific Summit for ISPIM – the International Society for Professional Innovation Management.

Speakers will unpack a range of topics including the blue economy and how our oceans can unlock the planet’s potential; big data and artificial intelligence; future energy infrastructure; and fintech.

“Wicked problems” like plastics in the ocean, food agility, and ‘flirt 2.0’, or how to unleash innovation in the era of digital disruption, will also be tackled.  

The 2017 summit brings together global innovation leaders and showcases Melbourne’s best-practice innovation.

The three-day event is hosted by RMIT’s Global Business Innovation Enabling Capability Platform.

The conference will include an address by the Hon Frank McGuire MP – Parliamentary Secretary for Medical Research and Parliamentary Secretary for Small Business an Innovation in the Parliament of Victoria.


A full program and speaker details are available at:
https://www.ispim-innovation-summit.com/

WHAT: 2017 ISPIM Innovation Summit 


WHEN: 9am Monday 10am to 3pm Wednesday 13 December

WHERE:  Swanston Academic Building (Building 80), RMIT University, 445 Swanston St,Melbourne.

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Inquiry into JP 157 replacement aviation refuelling vehicles infrastructure project

THE Parliamentary Standing Committee on Public Works yesterday announced that it is inquiring into a proposal from the Department of Defence for the replacement aviation refuelling vehicles infrastructure.

The JP157 infrastructure project will deliver new and upgraded facilities to support the replacement and future aviation refuelling fleets. The Department of Defence proposes to undertake a range of works across 15 sites ranging from bunding works, fuel treatment system works, shelters, hardstand and access works, fencing and contamination works as required.

The estimated cost of the project is $40.4 million.

It is anticipated that the Committee will conduct public and in-camera hearings for the inquiry in January/February 2018. Further information on the public hearing will be available soon.

Full details on the project are available on the Committee’s website: www.aph.gov.au/pwc

The Committee would like to hear from all individuals or organisations interested in the inquiry.

Submissions will be accepted until 25 January 2018.

NB: The Parliamentary Standing Committee on Public Works is neither involved in the tendering process nor the awarding of contracts. Enquiries on those matters should be addressed to the Department of Defence.

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Inquiry into Engine Test Cell 1 upgrade at RAAF Base Amberley

THE Parliamentary Standing Committee on Public Works yesterday announced that it is inquiring into a proposal from the Department of Defence for the Engine Test Cell 1 Upgrade at RAAF Base Amberley.

The purpose of this project is to establish a fit-for-purpose engine test facility that satisfies both the ongoing Super Hornet and Growler and the new F-35 engine testing needs. The engine test facility at RAAF Base Amberley is Australia’s largest fast jet engine test facility and this project will extend the existing functionality to enable efficient kitting and testing of the Super Hornet, Growler and F-35 engines.

The estimated cost of the project is $23.7 million.

It is anticipated that the Committee will conduct public and in-camera hearings for the inquiry in January/February. Further information on the public hearing will be available soon.

Full details on the project are available on the Committee’s website: www.aph.gov.au/pwc

The Committee would like to hear from all individuals or organisations interested in the inquiry.

Submissions will be accepted until 25 January 2018.

NB: The Parliamentary Standing Committee on Public Works is neither involved in the tendering process nor the awarding of contracts. Enquiries on those matters should be addressed to the Department of Defence.

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Landmark report on modern slavery delivered

THE Foreign Affairs and Aid Sub-Committee of the Parliament’s Joint Standing Committee on Foreign Affairs, Defence and Trade has tabled the final report for the Committee’s inquiry into establishing a Modern Slavery Act in Australia.

The Committee’s report, Hidden in Plain Sight, makes 49 recommendations to improve Australia’s efforts to combat modern slavery here and around the world. Latest estimates suggest that over 40 million people around the world, including 4300 in Australia, are victims of some form of modern slavery, which includes human trafficking, slavery, debt bondage, forced labour and other slavery-like practices.

The Committee recommends that the Australian Government introduce a Modern Slavery Act in Australia similar to but improving on the UK Modern Slavery Act 2015. The Committee recommends that the proposed Act should establish an Independent Anti-Slavery Commissioner and supply chain reporting requirements for entities operating in Australia. The Committee further recommends improvements to:

  • support for victims (including a national compensation scheme);
  • criminal justice responses (including training for frontline officials); and
  • protections for workers vulnerable to exploitation (including changes to Australia’s visa framework and establishing a national labour hire licensing scheme).

The Committee heard particular concerns about ‘orphanage trafficking’ and also recommends a range measures to ensure that Australians do not perpetuate the exploitation of children in overseas orphanages through donations or tourism. This includes establishing a register of approved orphanages and a national awareness campaign on the risks of orphanage trafficking.

Chair of the Foreign Affairs and Aid Sub‑Committee, Mr Chris Crewther MP, said that “modern slavery describes some of the greatest crimes our time".

“This report highlights that modern slavery is often ‘hidden in plain sight’ across a range of industries in Australia and in the global supply chains of businesses and organisations operating here. An Australian Modern Slavery Act, as recommended by this report, will make a significant contribution to ensuring that, here in Australia, we are doing all we can to combat these crimes,” Mr Crewther said.  

The report is available from the Committee’s website: www.aph.gov.au/modernslavery.

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House Economics Committee announces new recommendations for reform of banking sector

THE House of Representatives Standing Committee on Economics today presented its Third Report on reforming the Australian banking sector.

The report builds on the suite of important reforms previously recommended by the committee, which have been broadly adopted by the Government.

Key reforms to date include putting in place a one-stop shop for consumer complaints, the Australian Financial Complaints Authority; a regulated Banking Executive Accountability Regime; and, new powers and resources for the ACCC to investigate competition issues in the setting of interest rates.

The Government also adopted the committee's recommendations to establish an open data regime and change the regulatory requirement for bank start-ups in order to encourage more competition in the sector.

The Committee’s Third Report makes the following recommendations to Government:

  • If the banks do not act by 1 April 2018, regulatory action should be taken to ensure that merchants have the choice of how to process “tap and go” payments on dual network cards.  At present merchants are forced to process these transactions through schemes such as Visa and MasterCard rather than eftpos.  It is estimated that this forced processing costs merchants hundreds of millions of dollars in additional annual fees at present;
  • The Australian Competition and Consumer Commission, as a part of its inquiry into residential mortgage products, should assess the repricing of interest-only mortgages that occurred in June 2017;
  • The Government should introduce legislation to mandate the banks’ participation in Comprehensive Credit Reporting as soon as possible; and
  • The Attorney-General should review the major banks’ threshold transaction reporting obligations in light of the issues identified in the Australian Transaction Reports and Analysis Centre’s (AUSTRAC) case against the Commonwealth Bank of Australia.

Committee Chair David Coleman MP said "the Committee continues to hold the major banks to account during these regular hearings.  We look forward to the Government’s response to the Committee’s new recommendations."

The report can be accessed from the Committee’s website

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Recommendations for reforms to the film and television industry announced

THE House of Representatives Standing Committee on Communications and the Arts today presented its report on the Australian film and television industry. The committee has made 13 recommendations to ensure the future growth and sustainability of this sector.

The key recommendations are:

  • a single harmonised producer offset of 30% for all Australian screen productions which is a 50% increase in the current rebate for television programs and non-cinematic features;
  • an increase in the location offset from 16.5% to 30% to ensure that Australia can effectively compete for large-scale international productions;
  • that subscription video on demand companies invest part of their revenue earned in Australia in new Australian content;
  • that children’s content quotas be reformed in light of current viewing trends but continue to require quality Australian programs for children to be available across all platforms, particularly live-action drama;
  • that the Government consider replacing all or part of the current hours-based quotas for new children’s content with a contestable fund to create quality Australian children’s programs into the future;
  • that a minimum hours-based quota for first release children’s content be included in the ABC charter and that SBS show a minimum of 50% Australian content across all of its channels;
  • that 10% of Screen Australia’s funding be earmarked for productions filmed outside of the Sydney and Melbourne metropolitan areas;
  • that the Government remove the unnecessary red-tape obligation to consult the Media, Entertainment and Arts Alliance before permitting a foreign actor to work in Australia.

The Chair of the committee, Luke Howarth MP, said, "Australia’s film and television industry makes very important cultural and economic contributions to the nation. These proposed reforms will greatly enhance the growth and sustainability of this industry into the future.

"Technological advances have significantly changed the way Australians now access their screen content and the policy settings need to be updated to reflect this," added Mr Howarth.

The report can be accessed from the Committee’s website

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First public hearing on Section 44

THE Joint Standing Committee on Electoral Matters will hold its first public hearing on matters relating to Section 44 of Australia’s Constitution tomorrow.

Committee Chair Senator Linda Reynolds said the hearing will provide the Committee with the opportunity to consider the complexities surrounding Section 44 of the Constitution and the types of possible action that can lead to greater stability in our Parliamentary system.

“Australians need to be assured all members of parliament are constitutionally eligible to serve and they must also have confidence in the processes leading to parliamentarians’ election,” Senator Reynolds said.

The Terms of Reference are available on the Committee’s website.

Submissions are now open and will close on 9 February 2018.  

The Committee will hear evidence from the Australian Electoral Commission, the Attorney General’s Department, and professors Anne Twomey, Graeme Orr and George Williams AO.

Public hearing details: 9.00 a.m.Friday, 8 December 2017, Committee Room 2R1, Parliament House, Canberra

The hearing will be broadcast live at aph.gov.au/live

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Improving public sector performance reporting

THE Joint Committee of Public Accounts and Audit has tabled its report on the Commonwealth Performance Framework.

Committee Chair Senator Dean Smith said that improving the Commonwealth performance framework, to improve line of sight between the use of public resources and the outcomes achieved by Commonwealth entities, has been a long-term focus of the Committee.

“To build on momentum in the implementation of the Commonwealth performance framework, the Committee has recommended that the Public Governance, Performance and Accountability Act 2013 be amended to enable mandatory annual audits of performance statements by the Auditor-General, with Commonwealth entities to be consulted on the implementation timeframe,” Senator Smith said.

“The Parliament and the Australian public would then receive the same assurance on non-financial performance reporting as on financial reporting, where an independent audit is mandatory.”

The Committee has also recommended that:

  • the Australian National Audit Office considers conducting an audit of one complete Commonwealth performance reporting cycle;
  • the Australian Government amends the PGPA Rule and guidance to clarify the functions and charter of Commonwealth entity audit committees to reflect their role in assurance of the appropriateness of performance reporting;
  • the four audited Commonwealth entities from Audit Report No. 54 on 2016-17 Corporate Planning report back on how their senior management teams are working to further embed the corporate planning requirements in future cycles;
  • the Department of Finance undertakes a more comprehensive monitoring and evaluation program for the ongoing implementation of the Commonwealth performance framework;
  • the Australian Public Service Commission conducts a review on whether non-financial performance reporting and evaluation requires strengthening as a training and research discipline in consultation with other relevant agencies, and Finance reports back on progress in developing capacity training in this area; and
  • Finance reports back on Commonwealth entity progress in implementing a more mature approach to risk management and ‘joined up’ government.

The Commonwealth performance framework, established under the PGPA Act, requires Commonwealth agencies to produce corporate plans, Portfolio Budget Statements and annual reports, including annual performance statements.

The Committee’s inquiry was based on the following Audit Reports:

  • No. 58 (2016-17), Implementation of the Annual Performance Statements Requirements
  • No. 6 (2016-17), Corporate Planning in the Australian Public Sector
  • No. 31 (2015-16), Administration of Higher Education Loan Program Debt and Repayments

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

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