Peak retail industry body the Australian Retailers Association said it was urging banks to pass on the Reserve Bank of Australia’s (RBA) interest rate cut to both consumers and businesses given time was running out to save Christmas trade as consumers embarked on their shopping for the festive season.

ARA Executive Director Russell Zimmerman said Tuesday’s rate cut was timely relief for consumers, many of whom were starting their Christmas shopping during these first two weeks of December, but would rapidly lose its impact if banks didn’t pass on the rate cut soon.

“Most banks are yet to make an announcement on whether they will pass on the RBA rate cut to consumers and businesses and this is disappointing given time is of such essence as retailers ready themselves for Christmas trade.

“With 32 percent of consumers due to start their Christmas shopping in early December, the longer the banks drag the chain, the less likely it looks that retailers will have a successful trading period.

“Today we have heard media reports of yet another retailer going into administration, and this has a huge impact on the viability of the sector and employment given the industry is Australia’s largest employer.

“Many retailers rely on the festive trading period for a substantial amount of their yearly sales, which ensure they’re able to operate efficiently, keep people in jobs and contribute to the economy,” Zimmerman said.

For over 100 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia’s $240 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Fair Work (Registered Organisations) Act 2009 and with a range of member services including policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia.

Visit www.retail.org.auor call 1300 368 041.