RETAIL OK SAYS GELBER

Written on the 24 October 2011

RETAIL OK SAYS GELBER

AS minimum shifts for secondary school students are reduced to just 1.5 hours, economist Frank Gelber (pictured) says it’s not so bad in the the retail sector.

Speaking at a BIS Shrapnel business forecasting event, Gelber says although retailers are ‘screaming bloody murder’ and that ‘it’s the end of the world as they know it’, this isn’t the case.

“I suspect the retail situation isn’t really as bad as retailers are saying it is,” he says.

“They’ve just got fixed in their minds the very strong growth and high margins of the last decade. They’ve lost the strong growth and so they haven’t got the growth in profitability but their profitability is still high because their margins are high – they just haven’t got the growth.

“We’ve been looking for the dreadful retail conditions to result in sales which will cut their margins, but we haven’t seen that yet. Retail is actually ok, largely because a large part of retail is imported and by keeping their prices low, their costs are low and they can still give us sale items.”

The Australian Retailers Association (ARA) has welcomed a decision to dismiss a union appeal to reduce minimum shifts.

“We welcome this decision as the first step to introducing some flexibility in working arrangements and improving productivity in the retail workplace,” says executive director Russell Zimmerman.

“ARA now believes its incumbent on Fair Work Australia and the Federal Government to look at other issues in the retail award including archaic weekend penalty rate structures.

“Fair Work Australia has made a logical decision that means shifts between the end of school and close of business are safe and available for students who want to get their first experience in the workforce - this is a win-win situation for students and retailers.

“Since the previous three-hour minimum shift requirement under the modern retail award came into play on January 1 2010, retailers across the country have been forced to deny after school work to thousands of students employed in the sector. Retailers and industry associations have advocated for a ruling to save student jobs since the first applications were made in March last year.”


Latest News

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

EXCLUSIVE INTERVIEW: MEGAPORT CEO VINCENT ENGLISH ON GLOBAL EXPANSION AND HOW TO SCALE UP A BUSINESS

THE RAPID expansion of Megaport (ASX: MP1) continues with the Brisbane-based company announcing a major partnership d...

BRISBANE ENTREPRENEUR BREAKS BARRIERS IN ECO-BUSINESS

TRACEY Bailey believes that if every person understood the true social and environmental cost of every product the...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter