Dire trading conditions crash retail performance – new research
Friday 21 January 2022
New research shows most retailers have a negative business outlook over the next three months as January consumer confidence reaches its lowest point in thirty years.
An online poll conducted this week of Australian Retailers Association (ARA) members shows staff isolations are continuing to bite, with businesses limiting trading hours and temporarily closing locations. Retailers are calling for urgent expansion of close contact isolation exemptions as Omicron staff isolations decimate small business.
The survey findings representing thousands of businesses nationally, both large and small, include:
65% of businesses have up to half of their workforce in isolation
62% of businesses have rated current trading conditions as ‘poor’ or ‘terrible’
63% are concerned about the performance of their business in the next three months
Around a third of businesses (34%) say they have limited trading hours at some locations
Around one in five businesses (22%) say they have closed some locations due to staff shortages
66% of businesses support an expansion of the close contact isolation exemptions to include all retail, hospitality and hair and beauty workers
“Retailers would normally be thriving at this time of year with the post-Christmas sales and people out enjoying their summer holidays, but Omicron has been like a wrecking ball through the retail economy and small businesses in particular are suffering as a result,” ARA CEO Paul Zahra said.
“Consumer confidence is at an all-time-low, we’re seeing equally low levels of foot traffic through our major shopping destinations. The hopes of struggling businesses who were banking on a prosperous holiday sales period have been dashed.
“Unlike in 2020 and 2021, businesses are navigating these challenges with little to no support from Government. There’s no JobKeeper, no JobSaver and there is little in the way of cash grants to help businesses pay the bills during this unprecedented downturn.
“The Omicron impacts will be ongoing and targeted support is desperately needed from governments.”
** The online poll conduct 18 – 21 January had more than 165 respondents, representing tens of thousands of stores. Retail respondents were from all states and territories across a diverse range of businesses, including enterprise level retail and SMBs **
About us: The Australian Retailers Association (ARA) is the oldest, largest and most diverse national retail body, representing a $360bn sector which employs 1.3 million Australians and is the largest private sector employer in the country. As Australia’s peak retail body, representing more than 100,000 retail shop fronts and online stores, the ARA informs, advocates, educates, protects and unifies our independent, national and international retail community. To learn more about ARA’s exclusive member benefits and more, visit retail.org.au