As the retail industry braces for the release of the Productivity Commission's report into the retail sector tomorrow, the call to establish a retail advisory body is growing louder.
The Australian Sporting Goods Association (ASGA) is the most recent organisation to join the raft of retailer's and associated industry bodies demanding the Commonwealth Government create a retail advisory body ahead of the release of the Productivity Commission’s report, scheduled for 2pm tomorrow.
The report, a public inquiry into the economic structure and performance of the Australian retail industry, was announced by Government on December 18 last year, and since then has received a raft of submissions from retailers across the country.
One of these submissions from department store giant Myer, saw chief executive Bernie Brookes also alluding to the need to establish a retail advisory panel “similar to the mining and resource panel”, as well as the harmonisation of trading laws across all states and territories to help support the national retail industry.
“The Panel would represent the views of one of the largest employing industries, and provide feedback to the Government on the implementation of policy and the various changes to Government legislation on behalf of retailers,” Brookes said.
The ASGA backed Brookes' sentiment and has also recently addressed Prime Minister Julia Gillard and Assistant Treasurer Bill Shorten calling for the Government to establish retail advisory structures, citing the poor state of the retail economy and the lack of a central focus for the retail sector in government.
According to ASGA executive director Brad Kitschke, there is a need for a formal retail advisory structure to advise the Government on the PC's report, and to ensure the industry owns responsibility for the outcomes and recommendations.
“Retail representative associations all need to put aside traditional petty membership competition and work together. The Fair Imports Alliance, a coalition of industry Associations has lead the way, but to move forward others must overcome their historical differences and constant competition for membership,” he said.
“When the Productivity Commission report is released tomorrow the retail community and the Government need to work together. The sector cannot remain fragmented and competitive and the Government must engage one of the most important sectors in the economy.”
The bid to launch a retail advisory body and aid struggling Australian retailers also follows a report recently released by the Australian Bureau of Statistics, which depicts a 0.1 percent drop in ABS Retail Trade for June.
The Australian Retailers Association (ARA) has since spoken out, claiming that the ABS figures reinforce anecdotal reports that low consumer sentiment have destroyed the midyear sales period for struggling retailers. ARA executive director Russell Zimmerman also said the categories most reliant on midyear stock take sales showed a sharp decline in sales compared to the same time last year, with food and groceries once again buoying up the sector and inflating figures.
“Traditionally, retailers would see a bit of a boost at this time of year as consumers let their guard down and take advantage of goods on sale. However, compared to June last year sales for department stores (-4.8 per cent), clothing (-1.5 per cent) and household goods (-1.6 per cent) were dismal and showed a significant decline - the very categories most reliant on midyear sales,” he said.
The ABS Retail Trade figures contain monthly estimates of turnover for retail establishments. Trend, seasonally adjusted and original estimates.