Today, the Reserve Bank once again held rates, but shoppers’ wallets remain shut to struggling retailers.
The Australian Bureau of Statistics (ABS) reported that year-on-year sales flatlined in July, despite efforts by retailers to encourage spending.
National Retail Association (NRA) Interim CEO Lindsay Carroll said the sector is bracing for a significant discounting period from November, with Black Friday and Cyber Monday sales expected to play a crucial role in supporting retailers through the end of the year.
“Discretionary spending remains subdued, and many retailers are doing it tough in the lead-up to Christmas,” Ms. Carroll said.
“Retailers are working hard to generate enough profit, but consumer spending isn’t where it needs to be.
“Ongoing pressure from rising interest rates continues to impact the sector, with little relief in sight.
“The weight of these interest rates is unprecedented, especially since they’ve done little to address true inflationary drivers like housing supply and low productivity,” she said.
Despite government efforts to raise retail wages, workers in the industry are still vulnerable due to the high cost of living and cuts to working hours.
“Business owners are having to scale back on shifts just to manage rising costs, which in turn undermines the wage reforms meant to support workers,” she said.
“Policymakers need to take greater action to protect the industry and support both businesses and their employees.
“Retail is the largest employer of young people—the first group to feel the effects of economic downturns.
“We need a regulatory environment that supports businesses so they can grow and provide better opportunities for their workers. More must be done to protect such a vital part of our economy.”
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, please phone the NRA media unit on 0467 792 013.