THE Australian Retailers Association (ARA) said the seasonally adjusted rise (0.4 percent increase) in monthly retail trade figures (month-on-month) reported today by the ABS followed a 0.2 percent rise in December 2014.

ARA Executive Director Russell Zimmerman said retailers reported strong sales in the first week of January but experienced a tougher trading environment towards the end of the month.

“Boxing Day was huge for retailers this year and many consumers carried on bargain hunting well into the first half of January.

“Department stores struggled during December, but come January, it seems effective promotions were successful in drawing people in-store.

“While food retailing suffered during January (-0.7%) due to consumers often being away from home and choosing to eat out instead, the cafes, restaurants and takeaway food services sector enjoyed a nice boost in sales (2.0%). As always at this time of year, Aussies are out and about socialising with friends and family at their local eateries. 

“With many consumers returning to work from their Christmas holiday towards the end of January, there was a natural drop in discretionary spending which unfortunately impacted the clothing, footwear and personal accessory sector (0.1%).

“It will be interesting to see the results of February retail sales when this information is released next month, as Valentine’s Day usually provides retailers with another welcome boost in sales,” Mr Zimmerman said.  

In seasonally adjusted terms the states which displayed rises were Queensland (1.2%), Victoria (0.5%), Tasmania (1.9%) and Western Australia (0.1%). New South Wales was relatively unchanged (0.0%). There were falls in the Australian Capital Territory (-1.9%), the Northern Territory (-1.8%) and South Australia (-0.1%). 

MONTHLY RETAIL GROWTH (December 2014 – January 2015 seasonally adjusted)

Department stores (2.2%), Cafes, restaurants and takeaway food services (2.0%), Other retailing (1.0%), Household goods retailing (0.7%) Clothing, footwear and personal accessory retailing (-0.1%), Food retailing (-0.7%) and Total sales (0.4%).

Tasmania (1.9%), Queensland (1.2%), Victoria (0.5%), Western Australia (0.1%), New South Wales (0.0%),  South Australia (-0.1%), Northern Territory (-1.8%) and Australian Capital Territory (-1.9%). Total sales (0.4%).

YEAR-ON-YEAR RETAIL GROWTH (January 2014 – January 2015 seasonally adjusted)

Household goods retailing (8.7%), Cafes, restaurants and takeaway food services (5.0%), Clothing, footwear and personal accessory retailing (3.0%), Food retailing (2.2%), Other retailing (1.1%) and Department stores (1.1%). Total sales (3.5%).

New South Wales (5.2%), Victoria (3.6%), South Australia (3.1%), Queensland (2.4%), Western Australia (2.1%), Tasmania (1.9%), Australian Capital Territory (1.7%) and Northern Territory (-2.0%). Total sales (3.5%).

*

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 Australian Retailers Association (ARA) has continued to expand its physical presence by officially opening a Queensland office launching the ARA Queensland Division with Queensland based retailers.

The ARA Queensland Division is run by retailers, for retailers with our local board fully comprising Queensland retailers.

Following the collapse of smaller retail organisations over recent years which left local retailers with very little voice, the ARA has now officially opened offices in Brisbane with staff and board members working across Queensland.

ARA Executive Director Russell Zimmerman said the ARA Queensland Division looks forward to working with the new Queensland Government and will take a new bi-partisan approach to supporting retailers in the state.

“For some time now, Queensland retailers have reported they want certainty and security by having a stable government in place and an industry body that is accessible at all times to retailers which will advocate their issues to all sides of Queensland politics.

“In order to truly represent the retail industry and have a thorough understanding of the issues facing retailers on a day to day basis, an industry body must be run by those who know first-hand the opportunities and challenges that come with running a retail business. This is why the new ARA QLD division is proudly run by retailers, for retailers with nearly all key ARA staff also having retail backgrounds,” Mr Zimmerman said. 

ARA Queensland national board member and new Chair of the Queensland Division Ralph Edwards said Queensland-based retailers want to be certain their government is focused on creating jobs and improving business conditions.

“Retailers have told me they want clear direction from the new Queensland Government on jobs and costs for business. The ARA Queensland Division and Board will be working alongside the new government to ensure the retail industry and small business remain at the forefront of government initiatives,” Mr Edwards said.

ARA Queensland Division Board:

Ralph Edwards - Bright Eyes Sunglasses (ARA national board member and Queensland Chair)
Rowan Hodge - Battery World
Manjit Sadhwani - Dollars and Sense
Stuart Beechen - Aktiv Brands
Emmanuel Drivas - Coffee Club
 
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.

ends

THE Reserve Bank of Australia’s (RBA) decision to keep the cash rate on hold today at 2.25 percent will support the retail industry for the time being but additional cuts are likely to be necessary.

The Australian Retailers Association (ARA)  Executive Director Russell Zimmerman said the current period of stable interest rates is a positive sign for both business and consumers.

“While the stable cash rate has positively impacted consumer spending, both the Federal Government and RBA must now do all that they can to ensure that retail trade is fully supported.

“Unfortunately, we have seen some concerning data lately including low wages growth and a weak international environment which has left consumers and businesses feeling a little nervous. The ARA therefore encourages the government to prioritise real productive reforms and for the RBA to consider further rate cuts next month to maintain consumer confidence,” 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.

ends

THERE is little point in the Reserve Bank of Australia cutting interest rates on Tuesday and a move could drive business and consumer confidence even lower. 

QUT financial economist Dr David Willis said the RBA would likely resist a second cut in consecutive months but tipped a rate cut further in the year.

In its February meeting, the RBA cut the cash rate by 25 basis points to 2.25 per cent after they had been on hold for 18 months.

"The quarter of a per cent cut could be described as a surprise and wishful thinking from the RBA about the effect such a cut would have on any investment decisions and consumer consumption," Dr Willis said.

"There is little point in the RBA using what is left in its monetary arsenal at this time."

Dr Willis said with interest rates at record lows, cutting them further risked damaging the housing part of the economy.

"On one side, the side the RBA hope for, companies see low interest rates as an opportunity to invest in new infrastructure and consumers cheer lower mortgage payments and, buoyed also by cheaper petrol, start spending and stoking the economy," he said

"However the other side, which seems to be playing out, is that the RBA is seen to be very worried about the wider economy and low wage growth, high unemployment and low consumer and business confidence.

"So rather than boosting confidence, another rate cut could cause business to be more pessimistic, stop spending and amass cash in the event of a recession. Meanwhile consumers are worried about unemployment so use any savings to pay down debt.

"Cutting rates further now will only have a very marginal effect in the medium term and may drive confidence even lower."

Dr Willis said the "only bright spot" for the RBA was the property market and rate cuts could also put this in jeopardy.

"The RBA is starting to place a lot of risk into the housing market and if this develops into a housing bubble, then, when interest rates rise again, it could mean a bust taking the entire economy with it.

"Therefore I think the RBA will do the responsible thing for this cycle and keep rates on hold, as a cut gives no appreciable gain for the economy as a whole."

But Dr Willis said the RBA would probably be forced to cut rates again later in the year.

"Government is presently looking to cut the budget, not spend, and the economy is already in adjustment from the end of the mining boom," he said.

"So the RBA will have little choice but to use everything at its disposal to try to stimulate the economy later in the year, even though it knows there will be only marginal or no effect on the real economy and it risks inflating a housing bubble."

www.qut.edu.au

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KEEPING  the community safe and maintaining personal privacy and freedoms will be canvassed at a public hearing on Wednesday, as part of an Inquiry into the use of section 313 of the Telecommunications Act 1997.

The House Standing Committee on Communications will hear evidence from two organisations that question the need for section 313 of the Act, which gives Australian government agencies the ability to obtain assistance from the telecommunications industry when upholding Australian laws.

Electronic Frontiers Australia (EFA) regards section 313 as a “dangerous impediment to Internet freedoms” and recommends that it be struck out completely, or, if retained, be restricted to law enforcement, national security agencies, and possibly oversight agencies such as ASIC.

The Australian Privacy Foundation (APF) is opposed to section 313 in its current form and believes its misuse has an adverse impact on Australians’ privacy. The APF says the section should be re-written to establish due process and appeal rights, and to remove conflicts and confusion between the diverse subject matter comprising law enforcement, crime prevention and national security.

Committee Chairman, Jane Prentice said, “The Committee is conscious of the wide range of views within the community about the need for balance between personal freedom and community protection—especially in the internet age. The Committee expects that by testing a range of views on the use of section 313, we will be able to find the right balance between the rights of citizens and the responsibilities of government agencies.”

Details of the hearing are as follows:

Date: Wednesday, 4 March 2015

Time :8:00 am

Venue:Committee Room 1R3, Parliament House, Canberra

Further information about the Inquiry, including the full terms of reference and how to prepare a submission can be obtained from the Committee’s website at www.aph.gov.au/section313 or from the Secretariat on (02) 6277 2352.

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THE Australian Retailers Association (ARA) Executive Director Russell Zimmerman today welcomed the NSW Government’s commitment to sort out the ridiculous trading laws in NSW.

ARA Executive Director Russell Zimmerman said that NSW retailers have been suffering for too long and gives full support to the government to take action.

“NSW has been a laughing stock within the retail sector for too long now due to the unreasonable trading laws that restrain small businesses to open outside a few areas on Boxing Day.

“I have heard retailers right across NSW expressing their concerns on how they miss out on one of the busiest trading days of the year because of these antiquated laws,” Mr Zimmerman said.

ARA members have said that there is no sense in opening their store as a small retailer because shopping centres remain closed as a result of larger retailers not trading. The ARA has seen an overwhelming number of both small and large retail businesses who are affected by the ban.

“Both Mr Constance and Mr Baird should be commended for this move to deal with the ridiculous trading laws and we look forward to the upper house’s support in making these changes following the election,” 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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VECCI Chief Executive Mark Stone said the organisation was urging the Parliament of Victoria to support the passage of the Back to Work Bill as a priority for the job creation benefit it will bring to Victoria.

"VECCI, Victoria's major business organisation, has consistently supported this important legislation as it will establish a $100 million fund to give payroll tax relief to businesses hiring unemployed youth, the long-term unemployed and retrenched workers into full time work," Mr Stone said.

"Employers will be eligible for a payroll tax rebate of up to $1,000 per employee to subsidise the cost of training, uniforms, transport and tools.

"We understand that the Upper House resistance involves the Greens being unwilling to support the Government’s attempt to facilitate job creation in Victoria, as well as minor resistance from the Opposition on reporting requirements; both of which should not be the main game here.

"Every attempt by any Government to improve the job prospects for young people should be debated on merit, not on red tape trivia. Debate over reporting only creates more regulation and cost for small business. Jobs and the ability to employ more people is what matters," Mr Stone said.

"Any opportunity to create jobs for young Victorians and reduce the red tape impost on business must be seen as a step forward.

"VECCI hopes the two major parties resolve their differences quickly to give the Back to Work strategy a chance to succeed."

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

vecci.org.au

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BREAKING down trade barriers and improving opportunities for Australian industry and business will be on the agenda when two treaties are examined today.

The Treaties Committee will investigate the World Trade Organization (WTO) Agreement on Trade Facilitation, which aims to help Australian businesses better connect to the global economy by removing red tape and simplifying customs procedures.

The agreement was adopted by the 159 Members of the WTO in December 2013. It is the first major agreement concluded since the establishment of the WTO in 1995 and is seen as a significant milestone in the development of a multilateral trading system.

A number of administrative requirements have hindered businesses from taking full advantage of the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), Australia’s largest existing free trade agreement. The committee will investigate the First Protocol to Amend AANZFTA designed to make it simpler to complete the paperwork required to do business in the two countries.

Committee Chair Wyatt Roy MP says these two treaties will open up opportunities for Australian businesses and industry.

“It is not just tariff barriers that inhibit businesses from looking for global marketing opportunities. Often red tape and complicated customs processes prove too difficult to negotiate,” Mr Roy said.

The committee will also examine a treaty on mutual legal assistance on criminal matters with Viet Nam which will pave the way for Australia and Viet Nam to exchange information and evidence for investigating and prosecuting serious crimes.

Public Hearing: Monday 2 March, Committee Room 2R1, Parliament House, Canberra

11.10am 

World Trade Organization (WTO) Protocol Amending the Marrakesh Agreement Establishing the World Trade Organization

WTO Agreement on Trade Facilitation

11.50am

First Protocol to Amend the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)

12.30pm

Treaty on Mutual Legal Assistance in Criminal Matters between Australia and the Socialist Republic of Viet Nam

1.00pm

Close

The hearings will be broadcast through: www.aph.gov.au/live

Copies of the treaties and submissions received can be found at: http://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Treaties

ENDS