Retailers stuck in low gear

Written on the 2 December 2010

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.”


Latest News

ADELAIDE APARTMENT BREAKS OFF-THE-PLAN RECORD WITH $3M SALE

AN apartment in 'The Adelaidean' residential development in Adelaide has sold for more than $3 million, which...

CABCHARGE GIVEN GREEN LIGHT TO BUY YELLOW CABS IN QUEENSLAND FOR $20M

THE consumer watchdog will not oppose the proposed acquisition of Yellow Cabs in Queensland by taxi payment service C...

SLEEPING ROUGH IN THE NAME OF CHARITY: 170 BRISBANE BUSINESS LEADERS TAKE PART IN THE CEO SLEEPOUT

OVER 170 Brisbane CEOs and business leaders will brave the cold tonight to fight homelessness in what will be the big...

DOMESTIC TOURISM IN AUSTRALIA BREAKS RECORDS, INJECTS $61.7 BILLION INTO NATIONAL ECONOMY

DOMESTIC Australian tourists have spent a record breaking $61.7 billion on intra and interstate travel this year, acc...

Related News

DOMESTIC TOURISM IN AUSTRALIA BREAKS RECORDS, INJECTS $61.7 BILLION INTO NATIONAL ECONOMY

DOMESTIC Australian tourists have spent a record breaking $61.7 billion on intra and interstate travel this year, acc...

THE DOCTORS WHO PLUNGED INTO THE SHARK TANK AND SURVIVED WITH A $500,000 INVESTMENT

THEIR mission is to change the face of cancer care with an app that empowers and connects patients and care givers...

IMF BRACES FOR BIG LOSS FOLLOWING WITHDRAWAL FROM SPOTLESS CLASS ACTION

LITIGATION fund IMF Bentham (ASX: IMF) is set to lose as much as half a million dollars after it ceases funding one o...

WAGERING GIANTS TABCORP AND TATTS GIVEN GREEN LIGHT FOR $11B MERGER

THE Competition Tribunal has approved Tabcorp's (ASX: TAH) $11bn takeover bid for Tatts (ASX: TTS) on the conditi...

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