NATIONAL retail spending saw 3.2 percent growth year on year in February 2016, according to Australian Bureau of Statistics, with department stores picking up the lion’s share of the rise, says the Australian Retailers Association (ARA).

Total retail sales for the month were $24.8 billion. ARA records show this to be the lowest recorded year on year growth in two and a half years, since September 2013.

Year on year figures provide the most accurate measure of the sector’s performance and are the figures used by most retail businesses in their own reporting. February 2016 sales showed a 0.0 percent increase over January 2016 (month on month).

ARA Executive Director, Russell Zimmerman, said February 2016’s year on year retail growth figure is a reflection of Australia’s economic conditions and consumer uncertainty.

“While we saw a strong Christmas and January sales period, spending growth always tends to slow in February, which has clearly been the case this year,” said Mr Zimmerman.

“A combination of warmer weather patterns across most states, a pull back in spending as consumers headed back to work and school, as well as economic uncertainty have contributed to this outcome,” he said.

On a category basis, department stores were the main beneficiary of February’s growth, with a year on year increase of 6.6 percent – a clear indication that the transformation programs of the two major chains are making headway.

“Department store growth in 2015 was mostly underwhelming, so to see this result will be heartening for David Jones and Myer, who have both placed an incredible amount of effort into reinvigorating their businesses,” he said.

The ACT saw the largest rate of growth in February, at 7.2 percent, while Western Australia sat squarely at the opposite end of the spectrum, posting a loss in trade of 0.1 percent. WA’s last growth decline occurred in May 2014, at -0.7 percent.

“The lackluster performance experienced by retailers in WA is not unexpected, with the state having been hit considerably in recent months by the deflation of the mining boom,” Mr Zimmerman said.

“Consumers in WA have been quite pessimistic over the last few months as the large groups of workers who were present in the state have withdrawn, taking with them their considerable volumes of disposable cash.”

Clothing, footwear, and personal accessories also fared well, with 6.3 percent growth, which Mr Zimmerman said could be attributed to a mix of end of season clearance sales, unseasonably warm weather, and the introduction of new season stock.

“While overall growth of 3.2 percent is not a poor result for retail by any stretch, as retail is one of Australia’s largest private sector employers it is important the industry continues its momentum to be able to support our economy long into the future.

“We anticipate 2016 will be a year of mixed fortunes, with uncertain economic conditions, an election on the horizon, and an unpredictable Australian dollar all contributing to the current landscape,” Mr Zimmerman said.

YEAR ON YEAR RETAIL GROWTH (February 2015 to February 2016 seasonally adjusted)

By category:

Food, 2.4 percent; household goods, 4.3 percent; clothing, footwear and personal accessories, 6.3 percent; department stores, 6.6 percent; other retailing, 2.9 percent; cafés, restaurants and takeaway foods, 1.6 percent.

By state:

NSW, 4.6 percent; Victoria, 4.7 percent; Queensland, 1.2 percent; South Australia, 2.7 percent; Western Australia, -0.1 percent; Tasmania, 3.1 percent; Northern Territory, 0.6 percent; and Australian Capital Territory, 7.2 percent.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $293 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 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 Australian Parliament’s Northern Australia Committee will hold a public hearing in Canberra on Friday 8 April 2016 as part of its Inquiry into the Northern Australia Infrastructure Facility Bill 2016.

The Bill proposes to establish the Northern Australia Infrastructure Facility which would provide up to $5 billion in concessional financial assistance to infrastructure projects that promote the economic development of Northern Australia.

The Committee Chair, the Hon Warren Entsch MP, said: ‘Potentially valuable but smaller infrastructure projects in Northern Australia often find it more challenging to attract investment than equivalent projects in Southern Australia. The Northern Australia Infrastructure Facility is designed to provide loans to projects that already have significant private sector backing but that will not proceed without some additional investment’.

As part of its Inquiry the Committee will hear from the Department of Industry, Innovation and Science, who will have responsibility for implementing the Bill, as well as the Department of Agriculture and Water Resources.

Where: Committee Room 2R1, Parliament House, Canberra
When: Friday, 8 April 2016, commencing at 9.00 am.
Hearing programs are available at: www.aph.gov.au/jscna

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THE Australian Retailers Association (ARA) has recommended a modest increase to the minimum wage of no more than 1.2 percent in its submission to the Fair Work Commission’s (FWC) Annual Wage Review.

The ARA’s position preserves the value of the minimum wage over recent years, where wages have outstripped selling prices in the retail industry for an extended period.

Russell Zimmerman, ARA Executive Director, said that the peak retail industry body strongly recommends FWC hand down a minimum wage increase that is realistic and reasonable.

“Any changes to the minimum wage must consider weak economic trading conditions, current and imminent wage bill increases for industries undergoing structural adjustment and underemployment levels,” Mr Zimmerman said.

“We ask the FWC to consider high minimum wage increases over recent years as compensation that the economy, employment levels, and businesses can no longer afford.

“We recommend FWC adopts the 2015-2016 Annual Wage Review andawards an increase of no greater than 1.2 percent, which translates to a $7.90 per week increase to the national minimum wage and bringing it to $664.80 per week.”

In putting forward its recommendation, the ARA has worked with national business group, the Australian Chamber of Commerce and Industry (ACCI), in addition to the ARA’s retailer membership.

“The ARA supports ACCI’s position in outlining the economic risks and the state of the national economy capacity to pay within the sector.

“The Australian economy is facing a difficult period of transition in the near term, and our proposed increase in the National Minimum Wage seeks to minimise employment losses in a weak labour market,” said Mr Zimmerman.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA is the retail industry’s peak representative body representing Australia’s $293 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

For more information, visit www.retail.org.au or call 1300 368 041.

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FOR the first time the Australasian Society of Association Executives (AuSAE) will hold itsNational Conference and Exhibition: ACE 2016 at the National Convention Centre, Canberra from May 24–25.

The association and not-for-profit sector in Australia is a large and diverse group and ACE 2016 aims to provide a platform for hundreds of professionals to come together to gain industry insight, network and connect and learn from high-profile speakers.

ACE 2016 will address a wide range of highly relevant topics including membership, governance, leadership, advocacy, revenue streams, event management, culture, innovation, future trends, engagement and content marketing.

Conference Details:

WHAT: AuSAE Conference and Exhibition

WHERE: National Convention Centre Canberra, 31 Constitution avenue,  ACT 2601

WHEN: 24-25 May 2016

PRICE: AuSAE Member $1,015 Non-Member $1,365

HASHTAG: #ACEACT16

REGISTER: www.ausae.org.au/ace

Speaking at the conference will be influential keynote speakers:

Holly Ransom, CEO of Emergent Solutions, a company specialising in the development of workforces, leadership and social outcomes. Holly holds a Law degree and BA (Economics) and in 2012, was the youngest person to be named in Australia’s ‘100 Most Influential Women’.

Steve Vamos has more than 30 years’ experience in the information technology and online media industry. Steve presently serves as a non-executive director for Telstra and Fletcher Building Limited, and is a member of the Advisory Board of the University of Technology Sydney Business School.

Wendy McCarthy has held many significant national and international leadership roles such as, Deputy Chair ABC, Chancellor of the University of Canberra, Global chair for Plan International, Non-Executive of IMF Bentham, and was inducted into the Women’s Agenda Hall of Fame in 2013.

Registrations are now open, or more information visit: www.ausae.org.au/ace 

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