The Australian Retailers Association (ARA) is calling on the Queensland, South Australian and Western Australian Governments to deregulate their retail trading hours.
The peak body noted they should follow the lead of states that have approved deregulated trading hours such as New South Wales, Victoria and Tasmania.
ARA CEO Paul Zahra said this is particularly important now as retailers aim to address declining discretionary spend amid the upcoming Christmas trading period.
“Customers expect to shop where and when they like – and they expect the same convenience in physical stores as they get online,” Zahra said. “The settings in the three states that have yet to deregulate are restrictive and don’t reflect the 24-hour retail economy we see around the world.”
Zahra said this is a significant disadvantage to retailers within those three states. He said it inhibits their ability to maximise sales as cost of doing business is elevated alongside higher levels of debt.
“These issues are most evident as we head into the all-important Christmas trading period when many discretionary retailers make up to two-thirds of their profits,” he said. “Customers and retailers in Queensland, South Australia and Western Australia are worse-off because of the highly regulated nature of trading hours in these three states.
According to Zahra, shopping is no longer confined to brick-and-mortar stores with set trading hours. He said consumers now expect convenience, choice and the ability to shop when it suits them.
“They also expect to shop the sales like Black Friday without the pressure of limited opening hours. It is time for state governments to recognise that the world of retail has transformed.
“An example of this disconnect is a decision made by the Western Australian Government, who declined our request to commence extended trading hours for the upcoming Holiday Period one week earlier than planned so consumers and retailers can take advantage of the weekend between Black Friday and Cyber Monday.”
In the week leading up to Christmas this year, Western Australian shops can open until 9pm on weekdays, with a 6pm closure time for weekends, including Saturday, December 23 and Sunday, December 24. Boxing Day trading hours also end at 6pm on Tuesday, December 26.
Another example, Zahra said, is Queensland’s limited holiday trading hours, which he believes are complex for consumers and retailers alike.
“Retailers are broken down into a confusion classification of exempt and non-exempt businesses, and trading hours are different in specific areas or zones,” he said. “This creates confusion for retailers and consumers, and dampens consumer spending at a time when we should be doing everything we can to grow sales.”
Non-exempt shops in Queensland can open until midnight between December 18 and 23, but must close at 6pm on December 24 according to the state's Trading (Allowable Hours) Act 1990.
Business Queensland, under the Queensland Government, defines non-exempt shops as “other than exempt shops" and include large retailers including supermarkets, department stores and hardware shops or shops selling motor vehicles or caravans.
It adds that the core trading hours permitted for non-exempt shops depend on the goods predominantly for sale and the shop's location.
Zahra also claimed South Australia’s holiday trading hours are difficult to navigate for customers, noting different restrictions placed on retailers on certain public holidays like New Years Day – with CBD retailers able to trade, while metropolitan shopping districts are closed.
In South Australia, retailers in Adelaide metropolitan can open until midnight on Black Friday this year, according to Safework SA, but must close at 5pm on Boxing Day. Proclaimed shopping districts must remain closed on Boxing Day.
South Australia's midnight trading on up to three weekdays during the period from December 11 to December 23 has yet to be announced.
"Differing shop trading hours between states is confusing and unnecessary,” Zahra said. “We urge Queensland, Western Australian and South Australian governments to reconsider their approach and embrace a more competitive, flexible, and consumer-centric retail environment.”