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Small retailers blame Rudd Govt as confidence falls - Inaugural ARA Australian Retailers' Index released today

New research released today in the inaugural Australian Retailers Association (ARA) Australian Retailers' Index revealed retail support for the Federal Government has dropped dramatically during the past quarter falling 28 points to a negative 32 percent approval rating, with 42 percent of retailers believing government policies worked against small business.

ARA Executive Director Richard Evans launched the quarterly Index today at the Retail World Management & Technology Exhibition in Sydney and said the sector shouldn't be too quick to judge the new government but its clear confidence among retailers was much lower than the general SME population.

"The ARA Australian Retailers' Index shows confidence amongst the retail sector has deteriorated significantly during the past quarter with a fall of seven percentage points. That's 42 per cent lower than the same time last year.

"It is no surprise that 19 percent of respondents are citing the current economic climate as the prime concern this quarter. People are not spending and this has retailers worried. In fact, at 12 percent retail businesses were the most likely of any industry sector to report problems in this area.

Evans said rising interest rates was another economic climate issue concerning seven percent of retailers.

"There is a lot of concern about a range of issues including lack of work / sales and keeping staff (both 14 per cent) followed by cash flow and fuel costs (both 12 percent). There is pressure coming from all angles," Evans said.

The Australian Retailers' Index analyses the Sensis® Business Index results for businesses in the retail sector, providing a snap shot of the retail sector every quarter in the following categories: Retailer confidence; retailer concerns; sales, profitability and employment; capital expenditure; wages and prices and assessment of Federal Government policies. The results of the ARA Australian Retailers' Index assists the ARA to maintain strong links with government and influence and direct policy that may affect the retail industry.

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.

Get your copy of the Retail Confidence Figures - Information Slides.

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