The Australian Retailers Association (ARA) has warned Victorian businesses could suffer as a result of the Grand Final long weekend.
Introduced as a public holiday last year, ARA executive director Russell Zimmerman believes the instalment places unnecessary burden on local retailers.
“Holding a public holiday this Friday comes at a significant cost to businesses, which will be forced to pay higher than usual wages to operate their stores.
“At the same time, Melbourne CBD businesses will more than likely experience lower foot traffic as a result of business closures on the day, diminishing what was a peak sales period prior to 2015.
“Retailers will be faced with the difficult choice between remaining open and paying incredibly high penalty rates, or closing and losing sales.”
According to legislation in Victoria, the holiday will see businesses forking out 2.5 times the regular wage to their employees.
Zimmerman believes there is minimal benefit to the holiday in terms of driving revenue from retail and business due to costs incurred by additional labour.
“Feedback from our retailers indicates that a majority do not support the public holiday, and many operators simply plan not to open.
“There will be no wages transfer through higher penalty rates being paid or the traditional net benefit from tourism during AFL Friday as workers and businesses abandon Melbourne CBD to stay at home.”
Around 85% of businesses in Victoria closed for the day during last year's Grand Final holiday.