PEAK retail industry body the Australian Retailers Association (ARA) said the Reserve Bank of Australia’s (RBA) decision to keep the cash rate on hold at 2.5 percent does little to support the current upswing in retail sales.

ARA Executive Director Russell Zimmerman said that despite an uplift in the previous months retail sales figures, consumer confidence remains extremely fragile.

“Lowering interest rates today would have been a supportive step in the right direction for the retail sector but unfortunately this wasn’t the reality.

“Given the government still needs to pull money out of the economy to balance the budget, retailers believe the RBA will need to continue to support the economy via low interest rates for some time.

“We’re also aware that Australians are struggling to save at present. According to the latest Banking Day Report, only 46 percent of households said they were able to save each month – down from 49 percent in December and the lowest level since ME Bank started the survey in 2011.

“Although the retail sector finished the 2013-14 financial year on a relatively strong note, (recovering somewhat in June from the post-Federal Budget downturn), the reality is that this activity will be short lived.

“Consumer confidence often shows a dip in sales between August and October and it is now imperative that the Federal Government do all that it can to ensure that retail trade does not suffer as we gear up toward the spring/summer racing season and also the Christmas trading period.

“The ARA urges the RBA to lower interest rates at their next meeting in September in order to aid retail growth, especially for the SME sector,” Mr Zimmerman said.

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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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THE Queensland Government has set the stage today for development of a multi-billion dollar, world-class uranium mining industry in North Queensland. 

Queensland Resources Council Chief Executive Michael Roche said Mines Minister Andrew Cripps’ release of a strictly regulated framework for the resumption of uranium mining would support economic and jobs growth into the future. 

‘Essentially the state government has invited prospective uranium developers to make their case,’ Mr Roche said. 

‘The framework released today is the product of two years of meticulous review and provides a solid framework for assessing and regulating uranium mining.’

Estimates value current known uranium resources in Queensland at $18 billion.

A potential bonus from the framework’s development is a new lease of life for Queensland’s last uranium producing mine, Mary Kathleen (near Cloncurry). 

‘The Geological Survey of Queensland has appraisal studies at Mary Kathleen confirming its potential as a source of rare earths, which are critical to the development of digital and low emission power technologies,’ Mr Roche said. 

‘The new data will be closely scrutinised by investors as companies develop tenders to win the right to develop Mary Kathleen’s potential.’

Mr Roche said despite the good news for North and North West Queensland in terms of jobs, economic growth and government royalty revenues, he expected an hysterical backlash to the announcement from anti-industry activists.

‘Despite the years of work that have gone into developing a Queensland framework reflecting the experience of South Australia, West Australia and the Northern Territory, activists will claim that the nuclear power industry is shrinking and unsafe,’ Mr Roche said.

‘Yet the International Energy Agency has forecast electricity demand to grow by more than two-thirds from 2011-2035 with nuclear energy making up 12 percent of the mix (link below).

‘Contrary to activist propaganda, the state government and industry have worked together with other major stakeholders to deliver world’s best environmental protection and safety standards.’

On the transport and export of uranium, QRC supports the recommendation of the independent (Queensland) Uranium Mining Implementation Committee: ‘Uranium oxide mined in Queensland is to be exported via existing ports and shipping lanes for the export of uranium oxide. Queensland ports should be encouraged to seek additional business from the activity uranium mining will present in terms of materials supplied for construction, maintenance and mining operations. If a future request is made to export uranium oxide from a Queensland port, this request should be assessed by the Coordinator-General and the existing regulation for the transport.’ 

www.qrc.org.au

 PEAK retail industry body the Australian Retailers Association (ARA) said the seasonally adjusted rise (0.6 percent increase) in monthly retail trade figures (month-on-month) reported today by the ABS followed a -0.5 percent fall in April 2014.

Year on year retail growth also rose 5.5 percent in June 2014, seasonally adjusted, compared to June 2013.

ARA Executive Director Russell Zimmerman said that after an unseasonably warm autumn and post-Federal Budget drop in consumer confidence, retailers breathed a sigh of relief in June as the winter chill slowly started to settle in.

“Although retailers reported sales to be patchy, consumers finally started to stock up on their winter wardrobes and household items. Clothing, footwear and personal accessory retailing experienced an increase during June (1.4% increase) and household goods retailing also got boost from the change of season (1.7%).

“This increased activity also coincided with the launch of the mid-year stocktake sales period, with many retailers launching major sales mid-June.

“According to the Australian Retail Index (delivered by BDO and Retail Express), the retail sector finished the 2013-14 financial year on a relatively strong note, recovering somewhat in June from the post-Federal Budget downturn. The Index warned, however, that retailers should expect activity to be short lived over the remaining cooler months with historic consumer confidence showing a dip in sales between August and October.

“Overall, turnover rose in New South Wales (0.9%), Victoria (0.6%), Western Australia (1.1%), South Australia (0.5%), Tasmania (1.3%) and the Northern Territory (0.3%). Queensland was relatively unchanged (0.0%). There was a fall in the Australian Capital Territory (-0.5%).

“The Federal Government must now do all that it can to ensure that retail trade does not suffer as we gear up toward the spring/summer racing season and also the Christmas trading period.

“On this note, the ARA also strongly urges the RBA to cut interest rates when they meet tomorrow,” Mr Zimmerman said. 

MONTHLY RETAIL GROWTH (May 2014 – June 2014 seasonally adjusted)

Household goods retailing (1.7%), Clothing, footwear and personal accessory retailing (1.4%), Other retailing (0.9%), Food retailing (0.5%), Department stores (-0.5%) and Cafes, restaurants and takeaway food services (-0.6%). Total sales (0.6%). 

Tasmania (1.3), Western Australia (1.1%), New South Wales (0.9%), Victoria (0.6%), South Australia (0.5%), Northern Territory (0.3%), Queensland (0.0%) and Australian Capital Territory (-0.5%). Total sales (0.6%).

YEAR-ON-YEAR RETAIL GROWTH (June  2013 – June 2014 seasonally adjusted)

Cafes, restaurants and takeaway food services (9.6%), Household goods retailing (7.3%), Food retailing (5.7%), Other retailing (4.2%) Clothing, footwear and personal accessory retailing (3.5%) and Department stores (-3.2%). Total sales (5.5%).

Tasmania (10.6%), New South Wales (8.7%), Northern Territory (7.7%), Victoria (6.1%), Queensland (3.3%), South Australia (2.7%), Western Australia (1.6%) and Australian Capital Territory (-2.2%). Total sales (5.5%).

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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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PEAK retail industry body the Australian Retailers Association is confident the official change from signature to PIN for all scheme debit and credit card purchases will allow retailers to get on with the important job of doing business.

ARA Executive Director Russell Zimmerman said retailers will begin to see less fraud following the change to PIN-only purchases being made official today.

“Retailers are relieved to know that PIN is now officially the main form of card payment authorisation in Australia.

“The move to PIN is an important step to maintain a high level of integrity and security within Australia's card payment system.

“Not only is the move to PIN about strengthening payment security across Australia, this initiative will also help protect consumers and retailers alike from fraudsters. PIN is much more secure than signature - there is only a one in ten thousand chance of someone guessing your PIN.

“The real change for expanding PIN usage will be a behavioural one. Habits at point of sale will require some adjustment and consideration; however, it is a move that will help safeguard against fraud, making cards even safer to use.

“Consumers have been warned they risk being stranded at the checkout today if they have failed to memorise their credit and debit card PIN numbers or have not yet organised a PIN altogether. These consumers should contact their bank or card issuer immediately.

“Today’s official change-over marks the start of a three-month process to update 800,000 merchant payment terminals nationwide, rendering the signature obsolete.

“The ARA will be monitoring the success of this initiative very closely and we encourage all cardholders to embrace this change and enjoy the benefits of Australia’s highly secure card payment system,” 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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