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Unit Pricing will cost retailers up to 30 million

Peak retail industry body the Australian Retailers Association (ARA) has urged the Government to reject plans for national unit pricing scheme with retailers expecting up to $30 million in compliance costs. ARA Executive Director Richard Evans said the Standing Committee on Economics report tabled in parliament yesterday cemented evidence that plans to introduce unit pricing will do nothing to reduce grocery prices for consumers.

"Anyone who thinks unit pricing will reduce grocery prices needs to spend more time analysing the situation. The Committee's report clearly indicates restrictions and additional compliance requirements on the retail market (including in-store redesign and technology upgrades) will increase costs for retailers by up to $30 million, which would ultimately be passed onto consumers.

"The assumption that unit pricing would enable Australian families to cut their weekly grocery bills is deceptive. If the Rudd Government chooses to ignore the facts in the Committee's report, they will increase the weekly grocery bill for working families who are already struggling.

"Retailing is an extremely competitive market. However, it is not driven by retailers, it is driven by consumers and the retail market responds to consumer demand and currently there is no consumer demand for such a scheme. The Rudd Government will only increase costs for retailers, and ultimately consumers, by placing restrictions on the market and compliance requirements on retailers," 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.

For interview opportunities with ARA Executive Director Richard Evans contact: Kath Christie, ARA Policy & Media T: 0422 293 544 E: kath.christie@retail.org.au

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