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Retailers quietly confident as Dec 08’ quarter shows signs of growth

Peak retail industry body the Australian Retailers Association (ARA) said the 0.7 percent increase in the December 2008 quarter’s retail turnover is positive news for retailers who have reserved confidence of improved consumer sentiment.

ARA Executive Director Richard Evans said retail trade growth for the December quarter (NSW -0.6%, Vic 1.0%, Qld 1.0%, SA 1.5%, WA 0.8%, Tas 2.0%, NT 3.4%, ACT -0.1%)  was impacted by a number of positive economic indicators.

"There was a lot happening in the retail sector during the December 08 quarter. Retailers were relying on heavy discounting to move stock; petrol prices began to spiral downwards; and the Rudd Government's first economic stimulus package landed in bank accounts in December," Evans said.

"All of these positive economic conditions had an effect on consumer spend and returned consumer confidence during the past quarter. Consumers have defied negative rhetoric and panic commentary surrounding the global financial crisis and responsibly injected funds into the economy.

"The key to returned consumer confidence in 2009 is job security. We're calling on all employers throughout all supply channels to hold onto their staff to ensure consumers have the confidence to get cash flowing through the economy," Evans said.

"The sector feeling most of the benefit was food retailing (1.8.%), followed by other retailing (1.3%) and department stores (0.3%). Clothing and soft good retailing was up by (-0.2%) and household goods (-0.7%) benefited from significant post-Christmas sales outside of the survey period.

"The March quarter is always the toughest for retailers as credit card bills from Christmas roll in and back to school costs reign in consumer discretionary spend, but retailers are hopeful improved growth will return to the sector by the September quarter.  

"The retail sector is the barometer of the economy and when it recovers (anticipated from the September quarter), other segments will follow three to six months later. Now is the time for the business community to show leadership and hold onto their staff, providing confidence to their employees who are the consumer market with the key to economic recovery in their wallets," 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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