Home' Border Enterprise : May 2012 Contents ENTERPRISE DIRECT MAY 2012
ED AT THE SHOPFRONT
THE decision by the Reserve Bank
of Australia (RBA) in early April to
maintain the cash rate at 4.25 per cent
is putting further pressure on struggling
retailers, according to the industry's
National Retail Association executive
director Gary Black said the RBA's action
was disappointing, particularly in light
of Australian Bureau of Statistics figures
showing that areas of discretionary
spending are suffering.
"Retailers need clear air and lower rates
to pick themselves up after a horror two
years for the sector," Mr Black said.
"The illusion is that because the mining
industry is showing strong financial
growth, the rest of the economy must
be following suit.
"Unfortunately, that growth pattern is
not evident in the retail sector.
"The lack of a cut by the RBA has
particularly disappointed retailers who
are vulnerable to the discretionary
spend of consumers. A rate cut may be
the catalyst consumers need to move
them from savings mode to spending
mode," Mr Black said.
"Recent retail trade figures show the key
discretionary categories -- household
goods, clothing and footwear and
department stores -- are struggling to
get out of negative growth and trading
conditions remain extremely difficult.
"The rising costs of living have led to a
tightening of consumer's purse strings.
A rate cut is the best tool available to
ease the pressure on individuals and
businesses and contribute to a revival
of Australia's retail sector."
The National Retail Association is
Australia's largest and most diverse
retail association, representing large
and small businesses across all areas of
retail and hospitality.
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T: 02 6021 5866
F: 02 6021 8876
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