Retailers stuck in low gear

AUGUST 2010

DISMAL retail conditions in the past quarter shows small retailer confidence plunging 29 points to negative five per cent - the lowest result for any industry sector.

The Australian Retailers Index has shown a sharp decline in March, April and May exacerbated by the flow on impacts of two-speed economic conditions.

Australian Retailers Association executive director Russell Zimmerman, says the sharp fall and conservative consumer behaviour is proof that retailers are struggling.

“The results of the June ARA Australian Retailers Index clearly show retailers are stuck in the low gear of the two-speed economy,” he says.

“The most common concern for Australian retailers in the past quarter was the lack of sales or work – a sharp increase of 14 points from the previous quarter to 27 per cent. Other major concerns for the sector included the economic climate (24 per cent), followed by cash flow (12 per cent).”

Zimmerman says the index confirms recent reports that consumers are pulling back and not spending. With retail sales performance listed as the lowest among the industry sector, down 23 points to negative 34 per cent, profitability also dropped 16 points to negative 33 per cent.

“Amid the environment of poor trade in the past quarter, there was a feeling that government policies favoured larger businesses and worked against the small business sector,” he says.

“Looking forward, employment expectations for the current quarter also fell to disappointing levels at negative nine percent. The upcoming September ARA Australian Retailers Index will show an actual reflection of the new award’s impact on employment in the sector as small retailers struggle to manage increase wage bills.”

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

From pandemic side hustle to multi-million dollar business: Meet Ling Fung
Partner Content
Ask any parent, and they’ll tell you: preparing for a new baby is no easy task.&n...
Metro Baby
Advertisement

Related Stories

QLD government seals $280m partnership to establish mRNA vaccine research hub

QLD government seals $280m partnership to establish mRNA vaccine research hub

The Queensland Government, one of the world's largest vaccine i...

ACCC gives Compare the Market operator green light for iSelect takeover

ACCC gives Compare the Market operator green light for iSelect takeover

The Australian Competition & Consumer Commission (ACCC) has ann...

How Sourci made it: Meet the founders behind Australia’s new e-commerce wave

How Sourci made it: Meet the founders behind Australia’s new e-commerce wave

In just four short years the co-founders of product development con...

Competition watchdog sniffs at Cochlear-Oticon acquisition

Competition watchdog sniffs at Cochlear-Oticon acquisition

The management at Cochlear (ASX: COH) are hoping to add an extra 75...