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Retail assistance critical as sector faces more job cuts and closures

Peak retail industry body the Australian Retailers Association (ARA) said the retail industry was in critical need of assistance after recent announcements of more job cuts and recent Treasury predictions of shrinkage in manufacturing, meaning retail will face more pain as the catchment point in a supply chain already threatened by economic instability.

ARA Executive Director Russell Zimmerman said help with training, productivity and further acknowledgement of cost increases brought on by household taxes and regulatory burden was needed to ensure retail didn’t continue to be another weak link in the economic chain.

“Retail has been suffering since the GFC with store closures and job losses rapidly increasing across the sector in recent months. Retail is unable to sustain being next in line as a result of weakness in other sectors, and further staff cuts and business closures will inevitably arise from becoming a weak link.

“With other industries now letting substantial parts of their workforces go, ARA sees the pain only increasing for the retail sector through flow on effects making their way down the supply chain.

“As a $240 billion sector and Australia’s largest employer, retail assistance is critical especially for smaller retailers to be able to operate in a time of consumer uncertainty and job losses elsewhere,” Zimmerman said.

Zimmerman said he was hopeful the retail industry would see some sort of help through productivity training after he had positive discussions with Government in Canberra last week.

“I am hopeful Government will continue its focus on retail as an industry given it is Australian biggest employer and now is a critical time for retailers to innovate and review their business models to remain viable and competitive in a global economy. We will also be actively seeking further help in the coming weeks for the retail sector,” Zimmerman said.

For over 100 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia’s $240 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Fair Work (Registered Organisations) Act 2009 and with a range of member services including employment relations, 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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