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ABS February 2014 retail trade figures: 4.8% year on year growth

 

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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ARA urges RBA to exercise caution before adjusting interest rates

 

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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VicRoads’ regional relocation a win for Victoria - VECCI

 

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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Million dollar fine for CFMEU welcomed by peak business body

 

“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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Derek Dyson to keynote at retail industry awards celebration

PEAK retail body the Australian Retailers Association (ARA) is pleased to announce that Derek Dyson, Specsavers Global Retail Director, will be delivering the keynote address at the 2014 eftpos ARA Australian Retail Awards Breakfast on July 15 in Melbourne. 

ARA Executive Director Russell Zimmerman said it will be a pleasure to have Derek Dyson’s extensive experience and insights showcased at the Awards Breakfast in front of all award winners and contestants. 

“The Specsavers brand has certainly become a centrepiece of Australian retail. Specsavers first came to the Australian market in 2007 as a wholesale business before opening their first stores in 2008 in Melbourne. There followed one of the fastest retail roll-outs ever seen in Australia with 100 Specsavers stores opened over the course of just 100 days – a truly inspiring retail story that needs to be shared,” Mr Zimmerman said. 

Derek Dyson said it was an honour to be invited to give the keynote address at the 2014 eftpos ARA Australian Retail Awards Breakfast. 

“The retail industry has endured some tough times in recent years but it is important to remember that it is a cornerstone of the Australian economy - and needs to be seen as such, not just by retailers but also beyond. The ARA Awards are part of that and give all retailers, large and small, the opportunity to show just how good they are and just how focussed they are on their customers and the community at large. 

“For us at Specsavers, as a relative newcomer to the retail landscape across Australia, we were really thrilled to win two major awards at last year’s ARA Awards. Our offer of professional eye care matched with high quality, affordable eyewear has been embraced by the community. At the 2014 eftpos ARA Australian Retail Awards Breakfast I’m looking forward to sharing my views on how retailers can succeed in the face of ever-present competition,” Mr Dyson said. 

The ARA is calling on Australian retailers to prepare and submit their nominations for the 2014 eftpos ARA Australian Retail Awards. 

 key information and dates:

WHAT: 2014 eftpos ARA Australian Retail Awards
WHEN: Nominations now open and due by Friday 16 May 2014
Winners will be announced at the eftpos ARA Australian Retail Awards Breakfast in Melbourne on 15 July 2014 (tickets available at www.australianretailawards.com.au).
TO ENTER/NOMINATE: Visit www.australianretailawards.com.au to view eligibility criteria and select from eleven award categories
MORE INFORMATION: Go to www.australianretailawards.com.au, call 1300 368 041 or email This email address is being protected from spambots. You need JavaScript enabled to view it..

AWARD CATEGORIES: eftpos Australian Retailer of the Year, BDO Australian Retail Employer of the Year, Visa Australian Independent Retailer of the Year, Quest Payment Systems Australian Retail Innovator of the Year, Expr3ss! Staff Selection Software Australian Retail Graduate of the Year, eBay Inc Australian Multichannel Retailer of the Year, FCB Australian Retail HR Practitioner of the Year, Rest Industry Supermale & female, Roy Morgan Customer Satisfaction Retailer of the Year, Victorian Government Victorian Retailer of the Year and the Shop for Shops Australian Retail Store Upgrade of the Year.

Visit www.australianretailawards.com.au, call 1300 368 041 or email This email address is being protected from spambots. You need JavaScript enabled to view it. for more information.

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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ARA calls for maximum increase of $8.50 in FWC minimum wage review

 

PEAK retail body the Australian Retailers Association (ARA) recommends that the Fair Work Commission’s (FWC) Minimum Wage Panel increase national minimum and award wages by no more than $8.50 or 1.3 percent in the 2014 Minimum Wage Review. 

ARA Executive Director Russell Zimmerman said the 1.3 percent increase allows for expected inflation over the year to the September quarter 2014, while clawing back the over-compensation for inflation provided in the past two minimum wage decisions. 

“The ARA’s position preserves the value of the minimum wage over the last three years, and our submission addresses the key considerations of FWC when performing its wage setting function - which is to promote the economic prosperity of the people of Australia having regard to the capacity for the unemployed to obtain employment, as well as providing a safety net for the low paid and providing minimum wages for junior employees. 

“The ARA’s submission has outlined the difficult trading environment existing for the retail sector. With most small to medium retailers being reliant on a minimum wage workforce, any move to increase wages within the sector during this time of low consumer confidence and low to negative growth will only further job losses currently underway within the sector. 

“The retail industry makes a significant contribution to the overall state of the national economy and employs more people (including more juniors) in Australia than any other private sector industry. The retail industry is more reliant on pay scales than any other industry, and also suffers a higher disproportionate effect in minimum wage increases than other industries due to deregulated trading hours and penalties across all retail awards. 

“It is no secret that the retail sector is on a low to negative growth period during this time of low consumer confidence and low business confidence in the services sector. The FWC should consider any increase on an award-by-award basis and provide an interim decision or statement prior to handing down a final decision. 

“The ARA strongly recommends the FWC hand down a minimum wage increase that is realistic and reasonable and one that considers weak economic trading conditions, current and imminent wage bill increases for industries undergoing structural adjustment and underemployment levels. 

“What also must be taken into account is that the retail sector could hold potential wages growth if costs through wages are kept under control,” Mr Zimmerman said. 

View the ARA Minimum Wage Submission 2014
 
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.

 

Retailers welcome competition review panel to address serious competitive issues in the Australian economy

 

PEAK retail industry body the Australian Retailers Association (ARA) has welcomed the Federal Government’s announcement today of the final terms of reference and the panel for its Competition Review and congratulates Small Business Minister Bruce Billson for driving this review.
 
ARA Executive Director Russell Zimmerman said the ARA is positive about the scope of the inquiry and will be active in the process to see serious competitive issues addressed within the retail sector which have hurt consumers and reduced competition in some areas.

“The ARA sees the short-termism of dominant sector players are working to the long term disadvantage of retailers, retail jobs and consumers.
 
“Retailers will be happy with the balance in the panel and the need for the panel to look at markets in the retail sector which lack real competition.

“The ARA has worked with many of the panel appointees in the past, whether in workplace relations roles such as with Ian Harper on the Australian Payments Clearing Association (APCA) Merchant Forum, or in the case of Peter Anderson, as the head of Australia’s largest small to medium business representative body ACCI of which the ARA is a member.
 
“The ARA looks forward to working with appointees including Professor Ian Harper (Chair), Ms Su McCluskey, Mr Michael O’Bryan SC and Mr Peter Anderson.
 
“The Harper Review will be the first comprehensive review of competition laws and policy in more than 20 years and we look forward to this initiative getting underway,” 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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Unnecessary migration zone changes must be repealed

THE Abbott Government’s move today to repeal the extension of the Migration Act to vessels servicing Australia’s offshore oil and gas projects shows it is serious about reducing red tape and attracting further resource investment to Australia, says resource industry employer group AMMA.

The Migration Amendment (Offshore Resources Activity) Repeal Bill 2014 seeks to repeal last ditch Gillard Government legislation designed to deliberately increase the regulatory burden on employers using essential overseas labour to temporarily service Australia’s offshore oil and gas projects.

“The current legislation is a relic of the 2013 election year, delivered by Labor and the Greens at the behest of trade unions whipping up false panic on foreign workers,” says AMMA executive director Scott Barklamb.

“It is set to force foreign nationals working on foreign-flagged ships in international waters to obtain an Australian visa.  This is an extraordinary proposition, only possible through an equally extraordinary expansion of Australia's migration zone. 

“Extending Australia’s migration zone to regulate offshore activities in this way was never in our national interest. It is completely at odds with how offshore resource projects are built and regulated anywhere in the world.”

Mr Barklamb says the current legislation, set to take effect from 30 June 2014, puts Australia at a competitive disadvantage as a place to do business in a critically important part of the offshore oil and gas sector.

“Labor’s legislation introduced a radical change that massively expanded Australia’s legal territory and targets highly specialised international vessels assisting with the laying of pipes and assembly of critical infrastructure in international waters,” he says.

“It was an attempt by a dying government to deliberately impose punitive red tape for red tape’s sake and pander to a union desire to control workplaces that were outside Australia’s legal reach.

“Imposing unnecessary additional costs on this critical service sector will only delay the construction of mega oil and gas projects and damage Australia’s reputation at a time when we need to demonstrate to international investors that we are a rewarding, productive and flexible place to do business.

“AMMA urges the parliament to pass this important remedial legislation as soon as possible and correct the short-sighted regulatory excess bequeathed by the previous government.

“Now is not the time to play petty party politics. It is time to make smart decisions that will support further investment and employment in Australia.”

AMMA’s 2013 submission to the federal government detailed the detrimental effect of the provisions on Australia’s resource industry, economy and employment.

www.amma.org.au

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Costs are killing retail jobs – ARA to inform national red tape conference

PEAK retail industry body the Australian Retailers Association (ARA) urges the Federal Government to give retailers the opportunity to grow the Australian economy and create employment opportunities by quickly removing unnecessary red tape costs.

ARA Executive Director Russell Zimmerman will present at the Regulatory Reform conference in Canberra tomorrow morning. Mr Zimmerman will outline key cost blowouts which are killing jobs and growth in the Australian retail sector, as well as highlight potential employment growth opportunities if these issues are addressed in a timely manner. 

“The key message we will be delivering is that retail has a real opportunity for jobs and economic growth over the next five years, however, regulatory costs have stifled that growth in the last five years. The only way we will achieve our potential is to remove costs and restrictions. 

Key points that will be raised include: 

  • Over the last five years retail has grown by around 2% p.a. while jobs have only grown by 0.2% p.a.
  • Average full time wage is now over $55,000 with regulation killing flexibility.
  • Ernst & Young report confirms 93,000 jobs have been lost due to non-collection of overseas GST and the sector could grow by 87,000 jobs in the next four years with this red tape non-compliance measure being removed.
  • ARA/ACCI report shows 70% of businesses had their red tape burden increased in the last 12 months.
  • More than 55% of all businesses indicated they had no capacity to pass the cost of regulation on to consumers.
  • The carbon tax has significantly increased costs for retailers (e.g. for bakery retailers by $20,000 p.a.)
  • Almost one quarter of businesses (23%) spent between $10,001 to $50,000 on compliance management.
  • Safety and Workers Compensation is the most complex area of compliance (55.8 %). This was followed by Employee Wages, Conditions and Superannuation (51.4%) and Tax Compliance Obligations (47.5%).

“The retail sector shows real promise as the jobs driver for the economy over the next five years, but in order to achieve this, we must reduce costs and burden on retailers. 

“I see retailers every day of the week, from single store businesses to the boardrooms of some of Australia’s largest companies, and I can confirm that all of them have done a fantastic job in surviving - they have all had to cut costs and cut jobs. They are running on the smell of an oily rag. 

“The ARA congratulates the government on their first steps to reducing burden but the bulk of the work is still in front of them,” 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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Tourism body applauds Melbourne public transport cost reduction

 

 

THE s initiative that will reduce the cost of public transport for Victorians and visitors to our state.

“This initiative will make Melbourne a more attractive destination for international and domestic tourists and encourage them to explore the many attractions our city has to offer,” says VTIC Chief Executive, Dianne Smith.

“This is a ‘win’ for Melbourne’s significant international student population and will further enhance the city’s reputation as a world-class study destination. 

“A comprehensive communications plan must accompany these changes so visitors are aware of their ticketing obligations when using public transport. 

“Ticketing for Victoria’s regions should be reformed to encourage visitors to explore more of our state and spread the associated economic benefits. 

“It is positive that this initiative has bipartisan support and we look forward to it coming into effect.”

www.vtic.com.au

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Tourism body calls for MCEC funding to stem Melbourne’s loss of international business events

VICTORIA'S lead tourism body has called for the Melbourne Convention and Exhibition Centre (MCEC) to be funded to stem Melbourne's loss of international business events.

Victoria Tourism Industry Council (VTIC) Chief Executive, Dianne Smith said:

"VTIC calls on the State Government to fund the expansion of the Melbourne Convention and Exhibition Centre (MCEC). 

"MCEC turns away 17 percent of potential clients due to lack of capacity. 

"VTIC has been a consistent advocate of the need for this project and the VTIC 2014-15 state budget submission encourages the government to prioritise funding for this expansion.

"Business events are vital to Victoria, as they contribute $1.2 billion to the economy and are responsible for 22,000 jobs.

"Work recently commenced on Sydney’s convention and exhibition centre renovation, so if the MCEC expansion does not go ahead Victoria will lose a significant amount of business to NSW. 

"Losing business events to Sydney would mean Victoria loses the very high return on investment benefits that business events provide to the events and associated sectors.

"Victoria's priority sectors, such as health and medical research, greatly benefit from the array of worldwide industry leaders that congregate in Melbourne for events, such as for the recent Diabetes World Conference or the upcoming AIDS conference.

"There is also significant flow-on benefit for local businesses such as hotels and restaurants."

* The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s s tourism and events industry, providing one united industry voice. Tourism and events are growth industries for Victoria and contribute $19.1 billion to the state economy each year and employ more than 201,000 people.

www.vtic.com.au

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