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

VITA GROUP POSTS STEADY RESULTS DESPITE ROUGH YEAR

IT'S no secret Vita Group (ASX: VTG) has had a testing year, however the company has still managed to deliver ...

KOGAN BREAKS FORECASTS IN ITS FIRST YEAR OF PUBLICLY LISTED TRADE

RAISING the bar high in its first year as a publicly listed company, Kogan.com (ASX: KGN) has smashed its forecast...

CAMPLIFY MOTORS INTO THE UK MARKET

CARAVAN hire and RV sharing community Camplify has made its move in the European market, establishing its first op...

COCHLEAR R&D INVESTMENT DRIVES NEW PRODUCTS AND BOOSTS PROFIT AND REVENUE

COCHLEAR (ASX: COH) has boosted its 2017 full year net profit by 18 percent to $223.6 million and has forecast furthe...

Related News

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

SEVEN WEST REPORTS MASSIVE LOSS AND CUTS CEO TIM WORNER'S PAY PACKET BY $450K

SEVEN West Media (ASX: SWM) has posted a full-year loss of $744.3 million and cut CEO Tim Worner's pay packet by ...

HOW MAKING MISTAKES AND PASSION SCORED WEIGHT LOSS PARTNERS A DEAL WITH SHARK TANK'S JANINE ALLIS

THEY partnered up to provide a scientific and targeted approach to dieting, and Kate Save and Geoff Draper cut Sha...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter