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

BABY STEPS FOR BELLAMY'S IN TURNAROUND

GREEN shoots are appearing in the Bellamy's Organic (ASX: BAL) business in the early days of its turnaround.

T...

LOSSES MOUNT AT SLATER AND GORDON

SLATER and Gordon's losses continue to mount following its disastrous entry in to the UK market. The compa...

NVC PLAYS A DIFFERENT GAME, AND WINS

AS its profits rise, National Veterinary Care's (ASX: NVL) focus on training over retail is proving to be a wi...

SUPERLOOP $2M LOSS DOES LITTLE TO KILL SLATTERY'S CONFIDENCE

BEVAN Slattery (pictured) is optimistic that Superloop's (ASX: SLC) financial position is promising, despite t...

Related News

HOW TO TAKE CONTROL OF YOUR CAREER THROUGH TRAINING

GIG economy, remote working, and freelance Friday are more than just buzz terms; our workforce is changing, and so...

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter