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New research shows small retailers warrant big government support - ARA State of the Independent Retail Sector Report launched today

Peak 105 year-old industry body the Australian Retailers Association said new Deloitte research released today gave federal members of parliament a clear picture of the characteristics, operations and complex issues unique to independent retailers for the first time.

ARA Executive Director Russell Zimmerman said independent retailers – who are typically operating as sole proprietors, partnerships or family run businesses - hoped the results of the ARA State of the Independent Retail Sector Report would give the smaller guys in the fashion, service station, newsagency and convenience store sector more political clout.

 “The ARA State of the Independent Retail Sector Report revealed an overwhelming feeling the Government didn’t give enough support to independent retailers despite the fact they each provide jobs for an average five to ten staff, totalling over 108,000 Australians working for independent fashion, service station, newsagency and convenience stores across the country.

 “In the wake of the Global Financial Crisis and with declining sales and difficulties retaining staff, the most common challenges for independent retailers are: managing the compliance costs associated with new legislation (including time and administrative burden of understanding new workplace regulation); their capacity to compete with major players; access to working capital and cash flow; and managing low margins and high volumes.

“The costs to comply with new legislation are usually the same for all retailers – big or small, but independent retailers just don’t have the same resources as larger operators. The new research also highlighted the relatively short time frames to implement legislative changes put additional pressure on independent operators who are often working on the shop floor as well as trying to manage staff and store operations.

 “If the Government and opposition are serious about small business, the ARA State of the Independent Retail Sector report is exactly the kind of information they need to appreciate. The ARA calls on the Government to match the Coalition’s promise that the Minister for Small Business will sit in Cabinet,” Zimmerman said.

The ARA State of the Independent Retail Sector Report was prepared by Deloitte for the Australian Retailers Association and provides a snapshot of four independent retail sectors; fashion, independent service stations, convenience store and newsagencies in Australia. For each of the four sectors, this report has canvassed the following issues: Characteristics (ownership, size, operations) employment, market trends, key challenges and opportunities. Visit www.retail.org.au or call 1300 368 041 for a full free copy of the ARA State of the Independent Retail Report and accompanying Employment Atlas detailing independent retail employee numbers in each Commonwealth electoral division.

 For over 105 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 Fair Work (Registered Organisations) Act 2009 the ARA promotes and protects over 5000 independent and national retailers throughout Australia.

 -ends- Download a full copy of the ARA State of the Industry Report and Employment Atlas http://www.retail.org.au/index.php/policy/ara_research.For interview opportunities with ARA Executive Director Russell Zimmerman contact: Kath Christie, ARA Policy & Media T: 0422 293 544 E: media@retail.org.au

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