MELBOURNE: Retail mogul Solomon Lew has spoken out against recent interest rate rises and the "unfair price advantage" enjoyed by international online retailers.
The chairman of Premier Investments utilised the company's annual general meeting to voice his concerns for the retail sector. Premier Investments owns and operates the Just Group.
While Lew said he had “very high regard” for the Reserve Bank, he revealed he “very strongly” disagreed with its recent decisions on official interest rates.
“Measures to counter potential adverse consequences arising from a mining boom should not be at the expense of such an important contributor to our economy – the retail sector, which is already confronting a range of external adverse factors – through the blunt instrument that continued increases in official interest rates represent,” Lew said.
He also critiqued the conditions enjoyed by international online retailers that sell to Australian consumers. While Lew conceded the Just Group enjoys the benefits of selling internationally, he took issue with international online retailers not having to collect GST or charge import duties on goods valued at less than $1000.
“The issue is not about a fear of competition. It is about unfair competition and its consequences,” Lew argued.
“The government should act to enable a level playing field and promote real competition.”
The announcements came as Lew revealed the Just Group had endured a “more difficult than anticipated” first quarter of 2010/11.
“The combination of such factors as continued extensive industry discounting, abnormal weather in major markets and interest rate pressures has meant that Q1 was even more difficult than anticipated with Group total sales being marginally below last year,” Lew said.
“Directors anticipate a significant improvement in the second half as the business cycles the abnormal retail environment of 2H FY2010.”
Lew said the Just Group's anticipated earnings for the 2010/11 year are $100 million.
Apparel brands in the Just Group stable include Just Jeans, Jay Jays, Portmans, Peter Alexander, Dotti and Jacqui E.