The Australian Retailers Association (ARA) says the decision from the Reserve Bank of Australia (RBA) to hold the cash rate at 4.35% is a missed opportunity to provide much-needed relief for households and businesses facing financial pressures across the festive season.
ARA Chief Industry Affairs Officer Fleur Brown said retailers continue to face the dual challenges of subdued consumer spending and rising business costs.
“Small businesses are particularly vulnerable, grappling with rising costs in all areas, and continuing to feel the squeeze from economic pressures,” Ms Brown said.
“With the peak trading period now underway, where many discretionary retailers make up to two thirds of their annual profit, a rate cut would have provided retailers with renewed confidence across Christmas and the New Year.
“Retailers have been investing significantly in the Christmas season, from hiring additional staff to introducing new products and festive store displays,” she said.
“Retailers employ one in ten Australians and as a sector, contribute 18 percent of our national Gross Domestic Product (GDP). The holiday season is crucial to ensure retailers can weather the slower months ahead.
“Retailers also employ tens of thousands of casual workers over this time, providing an important source of additional income for many Australians.”
Ms Brown added that the ARA will continue to advocate for relief measures from the Federal Government to support the sector.
“We urgently need action to ensure Australia’s $430 billion retail economy not only survives but thrives,” she said.
“It’s vital that retailers—both small and large—are given the confidence to continue investing in their businesses through the critical months ahead.”
(ENDS)