The Australian Retailers Association (ARA) said the 0.2 per cent month on month drop in December retail trade reported by the Australian Bureau of Statistics would be disappointing to retailers who were hoping for a boost in sales over the holiday period.
ARA executive director Russell Zimmerman said the figures showed consumers were “under too much pressure” with confidence hit hard by tax hikes, increases in utility bills and private health insurance.
“Compared to December 2011 overall retail growth sat at 2.3 per cent for December 2012, which is well below the rate of inflation. It was clear in the lead up to Christmas household budgets were stretched to the limit.
“Retailers were hoping the December interest rate cut might have saved the festive season, but the rate cut wasn’t passed on and other cost pressures had accumulated, especially from the second half of the year with the introduction of the carbon tax.
“The decision by the RBA to leave the cash rate unchanged was disappointing for retailers and the latest figures reinforce the need for rates to be cut to 2.5 per cent to bring economic stability as well as rates down to interest rates in other comparable overseas economies.
“Now that the election has been announced, retailers need to know what the government and alternate governments are planning to do for business, as many struggle with unsustainable business costs and a sector in need of serious overhaul.
“The reality, when it comes to government business, doesn’t care about personalities or trite statements; what it cares about and needs is government stability and strong leadership.
“The ARA is calling on the current and alternate federal governments to implement key reforms crucial to viability and productivity for the $243 billion retail industry, including tax reform, workplace reform, a majority government, infrastructure, training and a return to budget surplus while reducing the pressure on business and consumers’ pockets.
“The ARA is also calling on banks to pass on borrowing cost savings they’ve been enjoying since June last year to their consumer and business customers, who are currently at the mercy of banks’ inflated pricing.
“Our economy comprises over 120,000 retail enterprises, most of which are small businesses but some of which are among the largest and most successful corporations in the world. As the peak industry body and the direct line between government and industry, the ARA will be advocating for the best outcomes for Australian retailers,” Zimmerman said.
