The JobKeeper program has been extended, providing critical wage subsidy relief for retailers. So what do the major groups think?
Australian Retailers Association (ARA) : a welcome relief, but room to extend rent support too
The CEO of the Australian Retailers Association Paul Zahra welcomed the extension as retailers approach the most critical trading period of the year.
Zahra said the revamped program addresses the main concerns raised by the ARA in recent months.
“The October to December quarter is a make or break period for many retailers particularly this year as it includes the all important Christmas trading period and the start of the Boxing Day sales. Whilst at a reduced rate, JobKeeper’s extension will ensure that jobs in the retail sector, many of which are held by women and young people, will be preserved through a period that is vital for retailers’ recovery,” Zahra said.
“JobKeeper, JobSeeker and other support measures have successfully provided an important boost to our economy. This extension of the program, tailored to those in highest need, will support the recovery of the retail sector - which is crucial to our wider economic recovery.
“We are also pleased to see payments more closely aligned with working hours of staff, with a lower payment for employees working less than 20 hours per week which addresses retailers’ concerns about fostering greater workplace cooperation with casuals and part-time staff.”
Zahra said that wages and rent were the two biggest pain points for retailers, and urged the Government to also extend the Mandatory Leasing Code of Conduct beyond September.
“The withdrawal of rent relief when the code elapses in September is another big concern for retailers in high need categories. When retailers win, landlords win - it’s important we all work together to ensure the survival of retail tenants and the Code has been working well to protect the interests of small to medium size retailers.
“Though we had hoped to be further on the road to recovery at this time, the spike of infections in Victoria and NSW clearly shows us we aren’t out of the woods. Today’s news eases the pressure on many retailers doing it tough and helps them to plan the next six months.
“Pockets of retail will take longer to recover, particularly discretionary retailers or for stores in the CBD and popular tourist locations. These retailers depend on higher foot traffic which we are unlikely to see for quite some time.
“Ultimately the future outlook for retail is positive, but it will be a challenging and bumpy road to recovery for many,” Zahra concluded.
The National Retailers Association (NRA) : a much-needed break but tough climate ahead
The National Retail Association (NRA) has welcomed the Federal Government’s extension of the JobKeeper subsidy until March 2021, but warned that the economic climate remains hostile for many businesses.
NRA CEO Dominique Lamb said that retailers welcomed the announcement but that an extension on an industry basis would be more appropriate.
“The future of thousands of businesses and the jobs they provide remain firmly in the balance. The NRA welcomes the extension of the JobKeeper program until March 2021, but the economic terrain will remain hostile for many retailers,” Lamb said.
“By our calculations, $3.4 billion in retail sales were lost in the month of April during the height of the lockdown restrictions. If we see the same spike we’ve seen in Melbourne occur in other parts of the country, the economics ramifications would be dire.”
“The JobKeeper scheme has undoubtedly saved many jobs, the challenge was always going to be how it would be scaled back.
“We’d have preferred an approach that extended it by industry. Sectors such as retail and tourism were always going to require additional assistance compared to other parts of the economy.
“Only 1 per cent of retailers are looking to employ more people at present. The extension of JobKeeper until March will hopefully result in a boost to business confidence, but many employers will continue to tread carefully.
“Ultimately we really need to see a pick up in discretionary spending to prevent many small businesses from hitting the wall.
"That is why careful consideration also needs to be given to programs such as JobSeeker so that we don’t see an overnight plunge in consumer spending.”