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have been quite pessimistic over the last few months as the large groups of workers who were present in the state have withdrawn, taking with them their considerable volumes of disposable cash.”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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AUSTRALIA’S resource employers have thanked former West Australian Minister for Mines and Petroleum, Bill Marmion, for his "support for the industry and service to Western Australia during his three year tenure in this critical and often challenging portfolio."

Australian Mines and Metals Association (AMMA) Executive Director Policy & Public Affairs, Scott Barklamb made the following statement:

"Minister Marmion has taken a highly considered, common sense approach to regulating one of Australia’s most important industries, and has been generous with his time and engagement at several AMMA industry events.

"Significantly, he leaves the mines and petroleum portfolio with Western Australia ranked as the world’s most attractive destination for mining investment (source: Fraser Institute, Annual Global Survey of Mining Companies 2015).

"We wish him well in his new role as Minister for State Development.

"AMMA and our members throughout Western Australia also welcome and congratulate Sean L'Estrange’s promotion to Cabinet as the new Minister for Mines and Petroleum. After serving on important parliamentary committees, Minister L'Estrange takes on a central portfolio for the West Australian economy and community.

"While the Premier has described today’s reshuffle as a commitment to diversifying the state’s economy, there is no question that the ongoing success and growth of the state’s resources sector remains critical to Western Australia’s economic, employment and community wellbeing.

"Iron ore remains Australia’s most important export and Western Australia is responsible for the vast majority of it. By 2020, Australia is also forecast to be the world’s largest exporter of LNG, driven in substantial part by major West Australian projects.

"Key priorities for Minister L'Estrange should be encouraging ongoing resources exploration and looking at new ways to ensure West Australian resource projects successfully transition from feasibility, into construction, and then production – delivering ongoing royalties and jobs for the state for decades to come.

"With suppressed commodity prices and other economic challenges, all eyes will be on lifting productivity, cutting red tape and supporting innovation and agility within Western Australia’s resources marketplace.

"AMMA looks forward to working with Minister L’Estrange in tackling these issues."

www.amma.org.au

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THE Victorian Chamber of Commerce and Industry’s recent submission to the Federal Government’s Quality of Assessment in Vocational Education and Training (VET) consultation calls for reforms to the national VET system to drive economic growth and create jobs.

“Restoring Australia’s reputation as a quality provider of VET programs is a priority,” said Victorian Chamber Chief Executive Mark Stone.

“It is crucial to improving workforce skills, lifting productivity and helping to address the recent fall in apprenticeship and traineeship numbers.”

The Victorian Chamber’s submission focuses on measures to reduce the complexity of the VET sector and boost quality standards across the training system.

“Feedback from our members shows that more must be done to ensure student, industry and employer demands are front and centre of the VET system.”

Mr Stone said differences in operating models in various states and territories increased complexity for employers operating across state borders.

“There is a clear need for greater national consistency in course funding, qualification assessment, qualification content and contact hours.”

Mr Stone said practical reforms were needed to lift the quality of training right across the system.

“Businesses need assurance that employees are equipped with the right skills to do their job and need to be able to trust in the quality of training that the VET system provides,” said Mr Stone.

“While many training providers are working hard to deliver high quality training that meets the needs of the labour market, all too often we see instances of providers engaging in inappropriate conduct.”

The Victorian Chamber’s submission supports changes to the regulatory framework that improve the capacity of the Australian Skills Quality Authority to monitor and enforce standards of conduct and assessment.

These include the re-testing of graduates where there have been a high number of complaints, a stronger role for employers in the validation of assessment and better targeting of high risk providers.

“Reforms in these areas will help make the system more responsive to individual and business needs,” said Mr Stone.

“Governments at all levels must commit to overcoming the currently disjointed VET models and their inconsistent and unreliable funding.”

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au

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NEW CEDA research has shown the Federal Budget deficit can be eliminated by 2018-19 and delaying a return to surplus will penalise those under 30 unfairly.

Releasing CEDA’s latest research report Deficit to balance: budget repair options, CEDA National Chairman Paul McClintock AO said Australia’s deficit problem is particularly alarming because despite a quarter century of sustained economic expansion, we have had eight years of deficit, with four more to go at a minimum according to Government.

“Despite promises from both major political parties to return to surplus this is yet to eventuate and on current forecasts, achieving sustained surplus seems implausible,” he said.

“The CEDA report shows that balance can be achieved using measures that will be politically palatable and can gain community consensus.

“Australia needs to have a much larger national conversation around structural economic reform, in particular tax and key areas such as bracket creep, corporate tax rates and GST.

“Reform is much easier during periods of fiscal strength. Removing the deficit by 2018-19 will allow Australia to reset the conversation on economic reform.

“Current generations of Australians have experienced an explosion of wealth in recent decades.

“Yet by running deficits during this period of economic expansion we are essentially saying that our increased wealth is not enough and we expect future generations to pay for our spending today.

“In particular, if you are under 30 you should be up in arms because the current situation is completely unfair.

“In addition to the penalty on future generations, as a player in the global economy, running a large deficit means we have no flexibility to respond to unexpected economic shocks.

“This means political choices to insulate and boost our economy become limited.

“Deficit and the resultant interest on debt narrows government spending choices by reducing the Budget pool and diverting money that could otherwise be spent on delivering services and infrastructure.”

Mr McClintock said the seriousness and urgency of dealing with the Federal Budget deficit means CEDA has taken a significantly different approach to delivering this report, with a high level expert Balanced Budget Commission formed to oversee the research.

“Commission members were chosen because of significant experience working in economics and policy, having served under governments from both sides, as public servants and leading economists,” he said.

“This is a unique CEDA report but it is necessary because no economic problem, which is in our power to resolve, is graver or more urgent in Australia than the persistence of large budget deficits.”

Mr McClintock said the report provides a number of options for bringing the Budget back to balance by 2018-19 which include a range of measures from changes to the private health insurance rebate, negative gearing, taxes on luxury cars, alcohol and tobacco, industry assistance and public sector efficiency.

“Getting back to surplus won’t be painless – some of it will be tough but we have tried to ensure almost all measures proposed will not affect the most disadvantaged in our society,” he said.

“This is not about taking away concessions from people or money from industry because they don’t deserve it.

“The reality is we have been spending more than we earn for too long and we need a realistic approach to returning to surplus.

“We recognise that it will be for the government of the day to select the measures to achieve a balanced Budget but these options show it is absolutely achievable by 2018-19.

“If our Federal politicians want to deliver something useful in the next term, balancing the Budget should be it.”

Deficit to balance: budget repair options is being launched at a National Press Club Address by CEDA National Chairman Paul McClintock AO today.

www.ceda.com.au.

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THE Australian Retailers Association (ARA) is asking Australians to spare a thought for the owners of small retail stores who will be forced to work over the Easter long weekend in order to bear the brunt of prohibitive labour costs as a result of penalty rates as high as two and a half times normal pay.

ARA Executive Director, Russell Zimmerman, said that should mum and dad owners of small retail businesses choose to open during the Easter long weekend period (where laws permit), most will forfeit their holidays as they will be unable to afford the stratospheric costs of penalty rates.

“The high cost of public holiday penalty rates will see the majority of mum and dad retailers stripped of their choice to work, with most left with no option than to work themselves or simply close their doors – missing out on crucial revenue,” said Mr Zimmerman.

“While the financial windfalls of excessive penalty rates are a boon to workers, small business owners are left at a major disadvantage as the payment of out of the ordinary labour costs eat into their bottom line. If a small retailer chooses to close instead of work themselves, they will still be forced to lose money, as the Australian consumer now expects to be able to visit stores across this period.

“If penalty rates were reduced, small business owners would be able to afford to employ staff on these days, giving them the opportunity to enjoy a day off – it is well known that the owners of small businesses are often too under resourced or financed to be able to enjoy the same holiday opportunities as paid employees.”

The ARA believes retail penalty rates must be addressed to allow business to respond to customer needs, rather than having to fit their allocation of labour to an antiquated system. The ARA is currently engaged in a review of General Retail Industry Award 2010 (GRIA), with the view to reducing costs for retailers, particularly on Sundays, with the independent arbitrator, Fair Work Commission (FWC).

“In light of online retail and the effects of globalisation, we now live in a 24/7 economy. Australian lifestyles are changing, and it is important to allow physical retailers the scope to be able to keep up with this change and compete effectively against these new challenges to provide consumers with the access and convenience to shopping they expect,” Mr Zimmerman said.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s more than $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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