VECCI chief executive Mark Stone has welcomed the extended retail trading hours announced by Melbourne.

"VECCI welcomes today’s announcement by Lord Mayor of Melbourne, Robert Doyle, of extended retail trading hours within certain parts of the CBD," Mr  Stone said.

"It’s encouraging to see the City of Melbourne’s initiative to support retail businesses and make the CBD an even more vibrant place to visit.

"This announcement reflects the continuing evolution of Melbourne’s CBD and the fact that we are a 24-hour, seven-day-a-week economy where customers no longer only shop 9am to 5pm weekdays."

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.

www.vecci.org.au

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PEAK retail industry body the Australian Retailers Association (ARA) said the seasonally adjusted rise (0.2 percent increase) in monthly retail trade figures (month-on-month) reported today by the ABS followed a 1.2 percent rise in January 2014.

Year on year retail growth also rose 4.8 percent in February 2014, seasonally adjusted, compared to February 2013. These positive results have left retailers optimistic that the industry may finally be on the road to recovery.

ARA Executive Director Russell Zimmerman said it is great to see such strong trade results for February, following a particularly impressive month of post-Christmas sales in January.

“Department stores experienced a significant drop in sales (-4.7%) which was to be expected as shoppers reign in their post-Christmas spending and start looking at their budgets for the year ahead.

“It is also no surprise that household goods (2.0%) and other retailing (1.9%) were large contributors to February results, with Valentine’s Day being a major celebratory occasion.

“Research company IBISWorld estimated that $791.4 million was spent on gifts and experiences on Valentine’s Day this year - up 1.8 percent on 2013 which is a great sign for the retail sector. The ARA was also pleased to hear that, on average, consumers spent about $86 on their partner on February 14.

“Cafes, restaurants and takeaway food services (0.1%) also benefited from Valentine’s Day. February was also a very warm month, with many consumers still in holiday-mode and enjoying regular social celebrations at their local cafes and restaurants.

“The ARA was pleased to see Victoria (0.5%), Western Australia (0.4%), New South Wales (0.1%) and Queensland (0.1%) experience growth, however, these rises were partially offset by falls in Tasmania (-1.4%), the Northern Territory (-0.6%) and the Australian Capital Territory (-0.1%). South Australia was relatively unchanged (0.0%). 

“The ARA is pleased to see 2014 starting to look up for the Australian retail sector. It is now imperative that the Federal Government gives retailers the opportunity to grow the Australian economy and create employment opportunities by quickly removing unnecessary red tape costs and addressing the low value GST loophole,” Mr Zimmerman said. 

MONTHLY RETAIL GROWTH (January 2014 – February 2014 seasonally adjusted):
  
Household goods retailing (2.0%), Other retailing (1.9%),  Cafes, restaurants and takeaway food services (0.1%), Clothing, footwear and personal accessory retailing (0.1%), Food retailing (-0.2%) and Department stores (-4.7%). Total sales (0.2%).              
 
Victoria (0.5%), Western Australia (0.4%), New South Wales (0.1%), Queensland (0.1%), South Australia (0.0%), and Australian Capital Territory (-0.1%) Northern Territory (-0.6%) and Tasmania (-1.4%). Total sales (0.2%).
 
 
YEAR-ON-YEAR RETAIL GROWTH (February 2013 – February 2014 seasonally adjusted):
 
Cafes, restaurants and takeaway food services (10.3%), Food retailing (5.0%), Household goods retailing (4.5%), Clothing, footwear and personal accessory retailing (4.3%), Other retailing (4.2%) and Department stores (-4.1%). Total sales (4.8%).
 
Tasmania (7.0%), New South Wales (6.7%),  Northern Territory (6.0%), Victoria (5.8%),  South Australia (4.6%), Queensland (3.1%), Western Australia (1.6%) and Australian Capital Territory (-0.07%).Total sales (4.8%).
 
 
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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PEAK retail industry body the Australian Retailers Association (ARA) is pleased to welcome world-famous Swedish retailer and ARA member H&M to Australia. 

H&M’s first Australian store will officially open in Melbourne's iconic GPO building in the Bourke Street mall on Saturday April 5 at 10am. 

ARA Executive Director Russell Zimmerman attended the H&M VIP launch event last night and was blown away by H&M’s stunning new store and extensive product range. 

“Last night’s launch event was truly impressive. The new H&M store has something for every Australian consumer and represents visual merchandising at its finest. 

“H&M has been at the forefront of affordable fashion for some time now, and the launch of their three storey, 5000 square metre maiden store has stirred a lot of excitement within the retail industry. 

“The chain, which has 3182 stores in 53 countries, is situated next to market leader Myer with its flagship city store as well as David Jones and newcomer Zara. H&M will provide shoppers with greater diversity and we believe it will be a true asset to Melbourne’s inner city retail precinct. 

“Having another well-known international retailer is always beneficial to competition, and the ARA is confident that local retailers are more than capable of stepping up to the mark to compete with any newcomers to the industry. 

“The fact that more and more international retailers are choosing to set up shop in Australia is a positive sign that the Australian retail industry may finally be on the road to recovery. 

“The ARA is proud to have H&M on board as members and we look forward to supporting their transition into the Australian market,” 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.

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PEAK retail industry body the Australian Retailers Association (ARA) said the Reserve Bank of Australia’s (RBA) decision to keep the cash rate at 2.5 percent was again the result that retailers were expecting. 

ARA Executive Director Russell Zimmerman said the RBA’s decision to keep the cash rate on hold for the seventh consecutive month, although somewhat disappointing for retailers, will hopefully provide the industry with the stability it needs to sustain growth over the coming year.

“Although retail seems to be showing signs of revival, unfortunately growth is not consistent and the SME sector is certainly still struggling. Interest rates must remain low to ensure that these retailers are able to cope.  

“The ARA is also concerned that with the cash rate as low as it is, banks and finance companies are starting to take advantage of this in terms of excessive charges on credit card rates. Banks need to consider Australian consumers – it is those who are least well off that must pay interest on credit cards when they need to purchase necessary products such as expensive electrical goods when they break down.

“Indicative rates from various banks show the interest charged on purchases that are not paid by the due date are between 19.59% and 20.74%.*
 
“While things seem to be looking up economically, we are aware the RBA will need to raise rates again in due course. The ARA urges the RBA to consider business owners when looking to raise rates – we are still seeing sectors of retail doing it very tough.
 
“When the RBA do raise rates they must do so slowly and exercise use the same caution as when they lowered them in 2013,” Mr Zimmerman said.

*Westpac interest on purchases -19.59%
  Westpac interest on cash out - 21.49%
 
  Commonwealth bank interest on purchases - 19.74%
  Commonwealth bank interest on cash out - 21.24%
 
  AMEX credit card interest rate on purchases - 20.74%
  AMEX credit card interest on cash out - 20.99%

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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THE State Government must prioritise measures such as regional growth and infrastructure in the upcoming state budget to make Victoria more liveable, says Victoria’s peak employer body. 

“Liveability is crucial to a strong economy. The focus must be on initiatives that strengthen this, including employment and infrastructure, the quality of our built environment, urban design and amenity, transport, planning and community participation,” says VECCI Chief Executive Mark Stone. 

“It is expected Melbourne will grow by an additional one million people over the next decade, so effective, whole-of-state planning and adequate investment is necessary to ensure Victoria remains the most liveable state.” 

Regional Victoria plays a major part in this, and VECCI welcomes the State Government’s pledges to relocate the Victorian WorkCover Authority to Geelong and VicRoads to Ballarat. 

s comments follow the release of the VECCI 2014-15 State Budget Submission: Accelerating Growth and Building Business Success. 

Priority VECCI recommendations for building a more liveable Victoria: 

• Assist Victoria’s small towns to adapt to industry restructuring and changes in agricultural practices and technologies and generate new business opportunities. 
• Support infrastructure development in Melbourne’s high population growth interface areas by creating a dedicated fund, similar to the Regional Growth Fund.  
• Investigate the scope to even further decentralise key state government departments and/or agencies to regional locations in order to improve regional stakeholder access to these agencies and support regional employment.  Implement a 5-10 year reform timetable. 
• Address outstanding regional infrastructure and related major projects, including but not limited to:
  
          - Development of the Gippsland Logistics Precinct.
          - The Mildura Riverfront Precinct.
          - The Shepparton Bypass.
          - The Ballarat West Employment Zone.
          - The Bendigo Airport Upgrade.  
   
  VECCI’s state budget submission focusses on measures to create a more liveable, competitive, internationally focussed and smarter state.
   
  Read VECCI’s full budget submission at:
  http://www.vecci.org.au/policy-and-advocacy/state-budget-summary

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VECCI Chief Executive Mark Stone has welcomed the headquarters to Ballarat.

"s longstanding view of the need for the State Government to further decentralise its departments and/or agencies to regional locations where appropriate," Mr Stone said.

"Strong regional economies are vital to the overall health of our state, and relocations of this nature will support regional employment opportunities.

"class liveability, Ballarat is well placed to accommodate the VicRoads headquarters and its employees.

"VECCI urges the ALP to commit to this initiative if it is elected to government."

www.vecci.org.au

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PEAK s Financial Systems Inquiry to undertake changes to ensure all current and emerging payment schemes fall under the same guidance as the two major card schemes.

ARA Executive Director and Chair of Australian Merchant Payments Forum (AMPF) Russell Zimmerman said the two party schemes (where banks issue co-branded cards allowing systems like Dinners and AMEX to avoid rules) are significantly hitting retailers bottom lines.

“We are seeking a mechanism that will capture these schemes along with new and emerging payments systems.

“Due to the competitive nature of retail and the increased volume of co-branded cards, merchants are unable to refuse acceptance of these cards. For the independent SME retailer as well as the major chains, any impediment or barrier to the consumer by trying to steer the consumer away from using these co-branded cards will result in the consumer shopping elsewhere with a merchant that accepts their preferred method of payment. 

“The ARA firmly believes that there is currently an unequal playing field. New entrants to the payment system are able to decide their own pricing model and choose if they wish to allow surcharging by the merchant, however, both of the schemes Visa and MasterCard are regulated to ensure that merchants rightfully are not charged more than a reasonable Merchant Service Fee (MSF).

“It is therefore only right that all participants in the payments system must be treated fairly and equally. Regulations need to be broadened to include both three party schemes (AMEX and Diners) and the existing regulated four party schemes (Visa and MasterCard) as well as new and developing entrants into the payment space.

“The ARA urges the Financial Systems Inquiry to review the cost structure of the payments industry. We believe that the effect of co-branded cards, the routing of scheme debit cards and the current and future fraud cost on the retail sector has and is continuing to have a large impact on costs that retailers are forced to accept,” Mr Zimmerman said.

Other key points raised in the ARA submission include:

• Rule changes are required in relation to co-branded or companion cards issued by financial institutions;
• All schemes need to be brought under regulation, not just the four party schemes that are currently regulated;
• Merchants should have the choice of routing for all payment transactions including, but not limited to, AMEX, Scheme Debit and contactless transactions;
• As internet transactions increase (currently at 6% of total retail – expected to grow to 12% of retail sales by 2020) and technology changes rapidly from cards to mobile devices to new POS equipment, merchants will need to invest heavily in new technology. Therefore, any costs to merchants need to be controlled;
• As bricks and mortar retailers move to PIN on credit (August 2014 onward) there will be necessity for increased security in the online area as fraud will shift from bricks and mortar retailing to the online retail space;
• Retail trading conditions are currently improving but unfortunately these increases are not being seen across all sectors of the retail industry. Retailers are still struggling from the post GFC and are unable to accept costs of innovation and increases in MSF that they have been experiencing from new entrants into the payment space. 

View the ARA’s submission here
 
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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“VECCI welcomes today’s decision of the Supreme Court to fine the Victorian CFMEU $1.25 million for contempt of court because it confirms that no-one is above the law,” says VECCI Chief Executive Mark Stone.
 
“There is no place for intimidation and harassment at work, attacks on an employer’s right to decide who it wants to employ or contempt for our courts.
 
“VECCI applauds Grocon for having the courage to stand-up to the CFMEU and pursue it through the court system. No other business should have to go through what Grocon has endured.
 
“VECCI congratulates the Victorian Government for standing shoulder-to-shoulder with Grocon to demonstrate it will not tolerate the rule of law being so flagrantly ignored. Its support for a business confronted with unlawful behaviour, and its recent ‘move-on’ laws, have both been welcomed by Victorian business.
 
“It is time for the ALP and Greens to stop blocking legislation in the Senate that will restore the Australian Building & Construction Commission (ABCC) with a full suite of powers, including the power to take action against parties who do not comply with the law."

www.vecci.org.au

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