The Australian Retail Council (ARC) says new Australian Bureau of Statistics (ABS) data confirms what retailers have been warning for weeks, with supply chain disruption, fuel costs and broader operating pressures continuing to weigh heavily on the sector.
The latest ABS Business Conditions and Sentiments survey, conducted from 4 to 15 May, found 74 per cent of retail businesses were negatively affected by fuel prices or availability, 58 per cent reported higher operating expenses, and 45 per cent reported lower revenue over the previous four weeks.
Retail was also among the industries most exposed to supply chain disruption, with 31 per cent of businesses reporting impacts. A further 41 per cent expect revenue to decline over the next month, underscoring the pressure on margins as costs rise and consumer demand remains subdued.
ARC Chief Economist and Chief Policy Officer Glenn Fahey said the official data reinforced the urgent need for practical measures to reduce business costs and improve supply chain resilience.
“The ABS has now independently confirmed what retailers have been telling us for weeks, that supply chain disruption and fuel costs were putting serious pressure on margins, staffing and business viability,” Mr Fahey said.
“The official numbers are concerning, but our own retail data suggests the pressure is even sharper on the ground, particularly for smaller operators with less room to absorb rising costs.
“Retailers have done everything they can to shield customers, but that becomes harder when freight, fuel and compliance costs keep rising at the same time consumer demand remains fragile.
“This is exactly why retailers need practical relief, not more cost and complexity.”
ARC’s own recent retailer survey found three in four retailers said supply chain conditions had worsened in April, while two in three reported high or severe concern about the next three months.
More than three in five retailers reported shipping and freight cost increases of more than 10 per cent, while three in four said they were fully or partially absorbing those costs rather than passing them directly on to customers.
“Our own surveys show businesses are calling for practical measures that improve freight productivity, strengthen supply chain resilience, reduce energy and operating costs, and ease unnecessary regulatory burden so retailers can remain competitive and keep prices down,” said Mr Fahey.
“Now more than ever, is the time to pursue the reforms that reduce the cost of doing business.”