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Bleak retail trade indicates tough times ahead

Peak retail industry body the Australian Retailers Association (ARA) said the retail trade trend estimates released today showing no change for June 2008 and a turnover decrease of 3.9% compared with May 2008 indicate continued tough times ahead for Australia’s economy.

According to the ARA's Executive Director Richard Evans the retail sector in Australia is a barometer of the economy and if it's struggling it's a sure sign that times will continue to toughen for the broader economy as ten years of economic sunshine come to an end.

"The trend estimates show a decrease in turnover trend estimates for department stores (-0.8%), clothing and soft good retailing (-0.6%), recreational good retailing (-0.2%) and hospitality and services (-0.1%).

"On the other hand food retailing showed an increase of +0.2%, indicating the rise in grocery prices due to increased fuel costs as consumers manage family budgets by eating in.

"Department stores and clothing retailers continue to struggle, but the hospitality retailers including cafes and restaurants are beginning to experience the drop off in consumer spend as families prefer home cooked meals and workers bring packed lunches rather than heading out to nearby cafes," Evans said.

For over 104 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.

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