PEAK retail industry body the Australian Retailers Association (ARA) said the seasonally adjusted rise (0.2 percent increase) in monthly retail trade figures (month-on-month) reported today by the ABS followed a 1.2 percent rise in January 2014.

Year on year retail growth also rose 4.8 percent in February 2014, seasonally adjusted, compared to February 2013. These positive results have left retailers optimistic that the industry may finally be on the road to recovery.

ARA Executive Director Russell Zimmerman said it is great to see such strong trade results for February, following a particularly impressive month of post-Christmas sales in January.

“Department stores experienced a significant drop in sales (-4.7%) which was to be expected as shoppers reign in their post-Christmas spending and start looking at their budgets for the year ahead.

“It is also no surprise that household goods (2.0%) and other retailing (1.9%) were large contributors to February results, with Valentine’s Day being a major celebratory occasion.

“Research company IBISWorld estimated that $791.4 million was spent on gifts and experiences on Valentine’s Day this year - up 1.8 percent on 2013 which is a great sign for the retail sector. The ARA was also pleased to hear that, on average, consumers spent about $86 on their partner on February 14.

“Cafes, restaurants and takeaway food services (0.1%) also benefited from Valentine’s Day. February was also a very warm month, with many consumers still in holiday-mode and enjoying regular social celebrations at their local cafes and restaurants.

“The ARA was pleased to see Victoria (0.5%), Western Australia (0.4%), New South Wales (0.1%) and Queensland (0.1%) experience growth, however, these rises were partially offset by falls in Tasmania (-1.4%), the Northern Territory (-0.6%) and the Australian Capital Territory (-0.1%). South Australia was relatively unchanged (0.0%). 

“The ARA is pleased to see 2014 starting to look up for the Australian retail sector. It is now imperative that the Federal Government gives retailers the opportunity to grow the Australian economy and create employment opportunities by quickly removing unnecessary red tape costs and addressing the low value GST loophole,” Mr Zimmerman said. 

MONTHLY RETAIL GROWTH (January 2014 – February 2014 seasonally adjusted):
  
Household goods retailing (2.0%), Other retailing (1.9%),  Cafes, restaurants and takeaway food services (0.1%), Clothing, footwear and personal accessory retailing (0.1%), Food retailing (-0.2%) and Department stores (-4.7%). Total sales (0.2%).              
 
Victoria (0.5%), Western Australia (0.4%), New South Wales (0.1%), Queensland (0.1%), South Australia (0.0%), and Australian Capital Territory (-0.1%) Northern Territory (-0.6%) and Tasmania (-1.4%). Total sales (0.2%).
 
 
YEAR-ON-YEAR RETAIL GROWTH (February 2013 – February 2014 seasonally adjusted):
 
Cafes, restaurants and takeaway food services (10.3%), Food retailing (5.0%), Household goods retailing (4.5%), Clothing, footwear and personal accessory retailing (4.3%), Other retailing (4.2%) and Department stores (-4.1%). Total sales (4.8%).
 
Tasmania (7.0%), New South Wales (6.7%),  Northern Territory (6.0%), Victoria (5.8%),  South Australia (4.6%), Queensland (3.1%), Western Australia (1.6%) and Australian Capital Territory (-0.07%).Total sales (4.8%).
 
 
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 (ARA) said the Reserve Bank of Australia’s (RBA) decision to keep the cash rate at 2.5 percent was again the result that retailers were expecting. 

ARA Executive Director Russell Zimmerman said the RBA’s decision to keep the cash rate on hold for the seventh consecutive month, although somewhat disappointing for retailers, will hopefully provide the industry with the stability it needs to sustain growth over the coming year.

“Although retail seems to be showing signs of revival, unfortunately growth is not consistent and the SME sector is certainly still struggling. Interest rates must remain low to ensure that these retailers are able to cope.  

“The ARA is also concerned that with the cash rate as low as it is, banks and finance companies are starting to take advantage of this in terms of excessive charges on credit card rates. Banks need to consider Australian consumers – it is those who are least well off that must pay interest on credit cards when they need to purchase necessary products such as expensive electrical goods when they break down.

“Indicative rates from various banks show the interest charged on purchases that are not paid by the due date are between 19.59% and 20.74%.*
 
“While things seem to be looking up economically, we are aware the RBA will need to raise rates again in due course. The ARA urges the RBA to consider business owners when looking to raise rates – we are still seeing sectors of retail doing it very tough.
 
“When the RBA do raise rates they must do so slowly and exercise use the same caution as when they lowered them in 2013,” Mr Zimmerman said.

*Westpac interest on purchases -19.59%
  Westpac interest on cash out - 21.49%
 
  Commonwealth bank interest on purchases - 19.74%
  Commonwealth bank interest on cash out - 21.24%
 
  AMEX credit card interest rate on purchases - 20.74%
  AMEX credit card interest on cash out - 20.99%

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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VECCI Chief Executive Mark Stone has welcomed the headquarters to Ballarat.

"s longstanding view of the need for the State Government to further decentralise its departments and/or agencies to regional locations where appropriate," Mr Stone said.

"Strong regional economies are vital to the overall health of our state, and relocations of this nature will support regional employment opportunities.

"class liveability, Ballarat is well placed to accommodate the VicRoads headquarters and its employees.

"VECCI urges the ALP to commit to this initiative if it is elected to government."

www.vecci.org.au

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“VECCI welcomes today’s decision of the Supreme Court to fine the Victorian CFMEU $1.25 million for contempt of court because it confirms that no-one is above the law,” says VECCI Chief Executive Mark Stone.
 
“There is no place for intimidation and harassment at work, attacks on an employer’s right to decide who it wants to employ or contempt for our courts.
 
“VECCI applauds Grocon for having the courage to stand-up to the CFMEU and pursue it through the court system. No other business should have to go through what Grocon has endured.
 
“VECCI congratulates the Victorian Government for standing shoulder-to-shoulder with Grocon to demonstrate it will not tolerate the rule of law being so flagrantly ignored. Its support for a business confronted with unlawful behaviour, and its recent ‘move-on’ laws, have both been welcomed by Victorian business.
 
“It is time for the ALP and Greens to stop blocking legislation in the Senate that will restore the Australian Building & Construction Commission (ABCC) with a full suite of powers, including the power to take action against parties who do not comply with the law."

www.vecci.org.au

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