Retail industry heads have pointed the finger at the Australian government, following lacklustre results from the latest sector report by the Australian Bureau of Statistics.
The ABS Retail Trade figures, released earlier this week, revealed a 0.2 per cent rise in Australian retail turnover for April 2013, seasonally adjusted, following a fall of 0.4 per cent in March 2013.
However, both the Australian Retailers Association (ARA) and the National Retail Association (NRA), have since voiced their opinions on the fragile state of the market and the Australian government's connection.
Commenting on the results, NRA chief executive Trevor Evans said the soft ABS retail trade data largely a result of continued government instability.
He added that the negligible rise was further evidence that growth in the vital retail sector had stalled as consumers waited for an election to reveal a secure and predictable government.
“We saw some initial signs of improvement in the retail sector at the start of the year, but after the early announcement of the election date, confidence has been de-railed as households responded to the uncertainty caused by government instability, some pessimistic forecasts for jobs and mining investment, and news of the worsening budget position,” Evans said.
“Shoppers are sitting on their hands, and their wallets, while they wait for a sense that there is a stable, longer term plan for the economy and the nation.”
ARA executive director Russell
Zimmerman also weighed in on the ABS statistics and said while any
rise in sales figures is welcomed; the marginal increase is also a
sign that the retail sector is still facing significant
challenges.
“Overall, the 0.1 percent increase in May
illustrates that consumers are still holding on to their purse
strings and discretionary spending remains tight. Cafes, restaurants
and takeaway food services suffered negative growth (-0.6 percent)
which may be a reflection of consumer nervousness in discretionary
spending due to instability in government. It is evident there is a
lack of consumer confidence in the whole economic situation in
Australia,” he said.
“Retailers are facing significant
cost pressure at the moment, including coming to grips with the
fourth transition of the modern award penalty rate, increases to
minimum wage and increases to superannuation of .25 percent as of
July 1. It is time for the Government or alternative government to
step in and increase consumer confidence by showing strong economic
leadership and reform.”
According to the latest ABS Retail Trade figures, the largest contributor to the rise in April 2013 was food retailing (0.5 per cent) followed by clothing, footwear and personal accessory retailing (1.8 per cent), cafes, restaurants and takeaway food services (0.5 per cent) and other retailing (0.1 per cent).
These rises were partially offset by falls in department stores (-2.0 per cent) and household goods retailing (-0.6 per cent). Over the longer term, the largest contributor to growth remains food retailing (up 0.6 per cent in trend terms).
Through the year, Australian retail turnover rose 3.1 per cent in April 2013, seasonally adjusted, compared to April 2012.