The Australian Retailers Association has described Christmas sales growth as "well below historic levels" and urged for a cut in interest rates next month.
Australian Retailers Association (ARA) executive Russell Zimmerman said there had been slow retail sales growth in a number of categories over the recent Christmas period.
“While Christmas sales initially appear to have been a little better than last year we know some categories were down and sales growth was still well below historic levels,” he said.
Zimmerman pointed to recent store closures, profit downgrades and sluggish housing, business and consumer confidence figures as further impetus for a rate cut.
The RBA will meet to make a decision on interest rates for the first time this year in February.
Zimmerman said current levels are globally uncompetitive.
“Australia has comparatively high interest rates compared to equivalent performing economies in Canada, New Zealand and Norway, which have cut interest rates to 1 percent, 2.5 percent and 1.5 percent respectively and has resulted in the Australian dollar being driven to record consistent highs affecting the economy," he said.
“For some time economists have recognised the potential problems through the ‘Dutch disease’. We are now facing significant issues through the value of the Australian dollar along with the hangover from the GFC stimulus government spending, affecting productivity and consumer confidence along with housing prices continuing their stagnation which has lead to low levels of retail sales growth."
DAVID JONES: Summer campaign.
