THE Australian Retailers Association (ARA) said the latest Australian Bureau of Statistics (ABS) April retail trade figures showed a disappointing 2.62% seasonally adjusted total growth year-on-year. 

Russell Zimmerman, executive director of the ARA, said higher petrol prices and declining house prices were partly to blame for a soft April, with consumers tightening their belts to meet their household budgets.

“April’s figures are somewhat poor for the industry, with either flat or declining turnover across several key categories,” Mr Zimmerman said.

Hardware and Building (5.33%) and Cafes and Restaurants (4.86%) led year-on-year turnover growth in April, while Department Stores (-3.74%) and Clothing (0.56%) returned to their well-documented struggles.

Mr Zimmerman said an unseasonably warm Autumn impeded winter apparel sales, with a later-than-usual break in the weather pressuring retailers to begin early discounting to keep the tills ringing.

“The continued slide in the Department Store category shows no sign of abating, especially with its heavy reliance on Clothing and Footwear, which are also experiencing continual problems,” Mr Zimmerman said.

“While Household Goods retailing, and Cafes, Restaurants and Takeaway Food remain strong, overall growth has been weighed down by mixed results in Food retailing and Clothing and Department stores going backwards.”

Food Retailing grew by 3.45 percent year-on-year, led by Supermarkets (3.62%), however, Specialised Food (0.28%) was flat, reflecting an earlier-than-usual Easter.

Across the country, Victoria (4.73%), the Northern Territory (3.64%) and New South Wales (3.55%) showed the strongest year-on-year growth of all the states, while the Australian Capital Territory (2.85%), Tasmania (2.82%) and South Australia (1.76%) remained steady. Western Australia (0.12%) saw a slight increase for the first time in 2018. Concerningly, Queensland saw a major drop off, posting a 0.03% rise to lag behind the rest of the country.

“We are hoping that relief will be just on the horizon for retailers, with the application of GST to overseas purchases under $1000 and potential income tax relief on the way from 1 July,” Mr Zimmerman said.

“Local retailers will finally be able to compete on a more level playing field once the GST changes come into effect, and we are hoping this will see consumers increase their spending in local stores.”

Monthly Retail Growth (March 2018 - April 2018 seasonally adjusted) 

Cafes, restaurants and takeaway food services (1.31%), Other retailing (0.87%), Household goods retailing (0.69%), Food retailing (0.30%), Clothing, footwear and personal accessory retailing (-0.82%) and Department stores (-0.90%).

Northern Territory (2.58%), Tasmania (0.90%), New South Wales (0.69%), Western Australia (0.69%), Australian Capital Territory (0.55%), Victoria (0.35%), Queensland (0.14%), and South Australia (-0.59%).

Total sales (0.27%).

Year-on-Year Retail Growth (April 2017 - April 2018 seasonally adjusted)

Food retailing (3.45%), Cafés, restaurants and takeaway food services (3.38%), Household goods retailing (3.00%), Other retailing (2.10%), Clothing, footwear and personal accessory retailing (2.02%), and Department stores (-3.74%).

Victoria (4.73%), Northern Territory (3.64%), New South Wales (3.55%), Australian Capital Territory (2.85%), Tasmania (2.82%), South Australia (1.76%), Western Australia (0.12%), and Queensland (0.03%).

Total sales (2.62%).

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 industry body, 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 QUEENSLAND coal industry is prepared to accept the independent competition regulator’s final decision on Aurizon’s rail maintenance budget and Aurizon should declare the same immediately and end the coal export impasse.

Queensland Resources Council (QRC) chief executive Ian Macfarlane said Aurizon should cooperate with the Queensland Competition Authority, immediately resume its normal maintenance program on the Central Queensland Coal Network and end the coal export impasse it started.

In its submission lodged with the QCA this afternoon, the QRC has noted the regulator’s preliminary position was for Aurizon’s rail maintenance budget to be increased by $73 million over four years, pending Aurizon itself providing the QCA with more information to support its position.

The QRC estimates the cost of Aurizon’s plan to stop the movement of up to 20 million tonnes per annum under its new maintenance regime would cost up to $4 billion per annum in lost Queensland export revenue and up to a $500 million cut in royalties paid to the Palaszczuk Government for services and infrastructure for all Queenslanders.

Link to Queensland Resources Council submission to the Queensland Competition Authority http://www.qca.org.au/getattachment/6892ea34-b870-45fe-8171-9ebc000aac56/QRC-submission-on-UT5-maintenance-matters.aspx

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THE AUSTRALIAN Retailers Association (ARA) is concerned the National Minimum Wage increase of 3.5 percent announced today by the Fair Work Commission (FWC) will stifle jobs growth within the retail sector.

Today the FWC announced the National Minimum Wage will increase to $719.20 per week, or $18.93 per hour from 1 July 2018. The General Retail Industry Award (GRIA) will increase to $789.90 per week or $20.79 per hour for full-time and part-time employees and $25.98 per hour for casuals.

Russell Zimmerman, executive director of the ARA, said Australian retailers were already facing an unsteady trading environment and this increase will be detrimental to the growth and stability of the Australian retail industry.

“Monthly retail sales growth is currently around 2 percent however we would like to see this growth increase to 4 percent to ensure retailers can invest in their business and employ more staff,” Mr Zimmerman said.

“With retailers already struggling to keep their heads above water, today’s 3.5 percent minimum wage increase will stifle retail growth and delay staff employment across the sector.”

As the retail industry is volatile at present, the ARA sought a minimum wage increase of 1.9 percent to increase staff employment by 3.5 percent over the next 12 months.

Given the current state of the sector and recent store closures, Mr Zimmerman said today’s increase would certainly have a negative effect on retailers and could potentially result in job losses.

“The ARA are passionate about maintaining a sustainable wage growth and would like to see retailers given the chance to not only invest in their business, but invest in employment to promote retail as a vibrant career choice for all Australians,” Mr Zimmerman said.

“Today’s minimum wage increase is well above inflation, putting the brakes on employment and innovation throughout the industry, which is detrimental for the retail sector.”

With the Australian retail industry employing over 1.2 million people, the ARA believed a 1.9 percent minimum wage increase would have brought balance back into the industry and preserved jobs for Australia’s largest private employer.

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 industry body, 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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IN ANOTHER positive sign for local industry, Aussie companies are being invited to supply equipment for the Future Submarine Construction Yard at Osborne in South Australia.

The Minister for Defence Industry, Christopher Pyne, said it’s very important Naval Group Australia continues to engage with Australian industry in the development of Australia’s shipbuilding enterprise.

“The Turnbull Government is committed to creating a sovereign naval shipbuilding capability including the construction and sustainment of the Future Submarine fleet for the Navy,” Minister Pyne said.

“The Future Submarines will be built in Australia, by Australians, and we want to maximise the involvement of local industry in all phases and facets of the program.

“The 15 Expressions of Interest are the first for capital equipment released by Naval Group Australia with more scheduled for release," he said.

“The items required include machining, metal cutting, shot blasting and automated welding equipment.”

Minister Pyne said Australian industry involvement in the Future Submarine Program was expected to generate an annual average of around 2,800 jobs over the life of the program.

“This equipment will be central to creating the Australian capability to manufacture the submarines,” Mr Pyne said.

Interested companies should visit: www.NavalGroupFutureSubmarine.icn.org.au

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