THE Australian Retailers Association (ARA) said January 2018 trade figures released today by the Australian Bureau of Statistics (ABS) represent a timid post-Christmas trade, with a 2.09 percent total growth year-on-year.

ARA executive director Russell Zimmerman said the ARA and Roy Morgan post-Christmas sales predictions were close to the actual post-Christmas trade results released today by the ABS. 

"The ARA and Roy Morgan release the only professionally researched retail predictions annually, and we are hopeful our post-Christmas forecast is in-line with the actual December and January trade results," Mr Zimmerman said.

"We predicted a 2.9 percent increase in post-Christmas trade, forecasting Australians to spend almost $17.9 billion from December 26, 2017 to January 15, 2018. As this forecast is over a three-week period the ARA and Roy Morgan will analyse these results against the December and January trade results to see if our predictions are on track.”

The strongest retail category in January was Other Retailing (3.22%), which was primarily driven by online retail which grew 3.23 percent year-on-year.

"The ARA and Roy Morgan predicted online retail to grow the strongest of all categories in post-Christmas trading, forecasting a 4.02 percent increase in post-Christmas trade,” Mr Zimmerman said.

"With the constant increase in online sales, we believe online retail will only grow even bigger as we continue to progress through the new year."

Unfortunately, Mr Zimmerman said, Newspapers & Books (-5.08%), Furniture (-2.43%), Footwear & Personal Accessories (-2.32%), Takeaway food (-0.95%) and Department Stores (-0.94%) all received negative figures in January.

"Although footwear is down at this point, we are hoping to see a pick-up in February’s retail figures as the back-to-school period was later than normal this year," Mr Zimmerman said.

"We believe furniture sales are lower than usual, partly due to the drop in the housing market and widespread pricing pressures for furniture retailers in Australia."

Across the country, Victoria (3.85%), South Australia (2.52%) and Tasmania (2.17%), showed the strongest year-on-year growth of all the states. While both New South Wales (1.84%) and Queensland (1.79%) remained steady, the Australian Capital Territory (0.44%) received minimal growth, and Western Australia (-0.27%) and the Northern Territory (-1.57%) received negative figures in January.

"With retail figures continuing to underperform, landlords need to understand how escalating rental costs affect an already struggling industry," Mr Zimmerman said.

The ARA claims current rental increases are unsustainable with rental prices increasing 5 percent on average, therefore retailers are looking for landlords to meet them halfway and shoulder some of the burden.

"The retail industry is struggling, and without retail landlords won’t survive, so we need support now," Mr Zimmerman said.

Monthly Retail Growth (December 2017– January 2018 seasonally adjusted)

Food retailing (0.01%), Clothing, footwear and personal accessory retailing (-0.69%), Cafés, restaurants and takeaway food services (0.05%), Department stores (-0.57%), Other retailing (1.00%), and Household goods retailing (0.05%).

Queensland (0.42%), Western Australia (0.32%), Victoria (0.26%), Tasmania (0.31%), Australian Capital Territory (0.04%), South Australia (-0.61%), New South Wales (-0.22%) and Northern Territory (-0.50%).

Total sales (0.07%).

Year-on-Year Retail Growth (January 2017 – January 2018 seasonally adjusted)

Food retailing (2.56%), Clothing, footwear and personal accessory retailing (0.43%), Cafés, restaurants and takeaway food services (2.75%), Department stores (-0.94%), Other retailing (3.22%), and Household goods retailing (1.38%).

Victoria (3.85%), South Australia (2.52%), Tasmania (2.17%), New South Wales (1.84%), Queensland (1.79%), Australian Capital Territory (0.44%), Western Australia (-0.27%) and Northern Territory (-1.57%).

Total sales (2.09%).

About the Australian Retailers Association:
Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak body industry, the ARA is a strong pro-active advocate for Australian retail and 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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THE FEDERAL Government is investing about $20 million in a Western Australia project producing lithium concentrate, an essential component in electric vehicles and battery storage.

The government’s Clean Energy Finance Corporation (CEFC)  is investing in the project located about 120km south of Port Hedland in Western Australia. The Pilgangoora open pit lithium mine will produce lithium concentrate that can support a full range of lithium products used in products such as lithium batteries. 

The CEFC’s investment in the project, led by Pilbara Minerals Limited, will help to finance the development of the Pilgangoora project.

A spokesperson said lithium was a vital component used in battery storage, which helps to support Australia’s increasing use of renewable energy.

“Increasing the supply of lithium will help to drive the uptake of clean energy technologies, such as electric cars and battery storage,” the spokesperson said. “This is the Turnbull Government’s first investment in a mining project of its kind in Western Australia and demonstrates our commitment to investing in clean energy technologies.”

Construction of the mine is expected to start in early 2018. The mine will provide direct employment in  the Pilbara region during the construction phase.

www.cefc.com.au

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THE Australian Small Business and Family Enterprise Ombudsman has launched an inquiry into access to justice for small business.

Ombudsman Kate Carnell said small business operators were at the wrong end of a power imbalance in dealings with big business and governments. 

“Consumer protections don’t always apply to small businesses, who have limited options in seeking resolution,” Ms Carnell said.

“There are mediation services provided by my office and state Small Business Commissions, but if the dispute can’t be mediated it starts to get expensive.

“The current legal system puts small business in no man’s land.

“The court system is expensive and takes a lot of time. If there are two things that small business operators don’t have it’s time and money.”

Ms Carnell said the Federal Government’s new one-stop shop to deal with banking disputes, the Australian Financial Complaints Authority (AFCA), was a positive step.

But AFCA is an industry-funded scheme and won’t be able to deal with non-financial matters.

“That’s why I’m launching an inquiry into how we can improve access to justice for small business in disputes with big business and governments,” Ms Carnell said.

The first phase of the inquiry will examine:

• The nature and incidence of small business disputes in Australia, identifying patterns and trends;
• The level of awareness of options available to small businesses, particularly alternative dispute resolution;
• Actions taken by small businesses when faced with a dispute;
• Reasons for decisions made throughout the dispute resolution process, and
• Developments and trends in similar jurisdictions overseas.

“Our starting point is to research the current situation by talking with academics, legal experts and mediation services,” Ms Carnell said.

“Early next year we’ll survey small businesses and any business operator who’s interested will be able to participate.

“I’m particularly interested to learn more about overseas experiences. If there are practical models elsewhere that work we’d like to evaluate them for potential application in Australia.”

Ms Carnell said a discussion paper would be released by the middle of 2018 to summarise the research and propose policy options.

Public comment will be invited on the paper.

www.asbfeo.gov.au

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THE AUSTRALIAN Small Business and Family Enterprise Ombudsman (ASBFEO) has called for a bipartisan approach to energy policy to avoid job losses and business closures.

Ombudsman Kate Carnell said the small business sector faces being crippled by rising electricity costs and reduced reliability if the status quo remains.  

Ms Carnell said both sides of politics should endorse the Finkel Report and adopt its recommendations.

"Business as usual is no longer an option. Business as usual is lack of reliable power and exponential price increases," Ms Carnell said.

"If Parliament obfuscates and refuses to get behind Finkel it will cause small business closures and job losses, it's that simple.

"What we've seen up until now is a perception from both sides that there are more political brownie points in shooting down the other side than there is in coming up with a solution.

"The most important issue here is that support from all sides of politics for Finkel gives investment confidence," she said.

"These investments are long term. You don't invest in power for two, three or five years.

"It's for the long term and investors need confidence there's not going to be another change of policy when there's a change of government."

Ms Carnell said the Finkel Report provides a framework that's not technology specific. It doesn't rule in or out any form of generation.

"The report's whole focus is it allows any technology to occur inside certain parameters of emissions," she said.

"It would allow a current coal-fired power station to be upgraded significantly to make it more carbon efficient, but it also gives rewards for low-emissions technology.

"There are no penalties but there are rewards. It's not a carbon tax because no revenue flows to government.

"We understand there are a number of projects ready to go. Without confidence that there won't be policy change the investors are not willing to take the risk, which is totally understandable," Ms Carnell said.

"The major issue right now is investor confidence."

www.asbfeo.gov.au

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