The Reserve Bank has been praised for seeing the light of day and deciding to pause interest rates at 4.1 percent, giving retailers a chance to find their bearings.
National Retail Association CEO Greg Griffith has welcomed the RBA’s decision to pause interest rates this month, allowing the sector to make use of the positive momentum gained in May.
“Australian Bureau of Statistics data shows that Mother’s Day spending in May gave retailers some relief as promotional sales encouraged consumers to spend on florists and cosmetic retailers,” Mr Griffith said.
“The pause in interest rates immediately follows the wage and superannuation guarantee increases that kicked in last Saturday (1 July).
“We predict the payroll increase of 5.75 per cent could force smaller retailers to shed labour costs, but the rates reprieve might give them time to find creative solutions to deal with increasing business costs.
“The resilience of the Australian retail sector speaks for itself, and we urge businesses to do what they can to boost morale and offer their customers experiences that inspire loyalty even through the inflation storm,” Mr Griffith said.
Mr Griffith said the retail sector hopes the RBA’s insistence on taking more money out of the retail sector and blocking future income is at an end.
“We ask the RBA to stay their hand for another couple of months so businesses can find their bearings before dealing with another rate increase.
“Retailers have faced several blows and while the rates pause is a step in the right direction, we urge the Government to turn its attention to businesses that are struggling to stay afloat.”
The National Retail Association represents more than 60,000 stores across Australia. It has been serving businesses in the retail and fast-food sectors for close to 100 years.
For more information, contact the National Retail Association’s media unit on 0467 792 013.