ARA: Retail figures look gloomy
June retail figures showing a lacklustre 0.2 per cent growth for the second month in a row reflect anecdotal trading doldrums from retailers across the country, according to the Australian Retailers Association (ARA).
ARA Executive Director Russell Zimmerman said a 0.8 per cent sales volume growth for the June 
quarter, shown in figures released by the Australian Bureau of Statistics, also painted a bleak picture but looking at year-on-year growth would give the most accurate assessment of how retailers are travelling.
"When July results are posted next month we'll see how retailers fared during the first month of wage bill increases under the new retail award but we're already getting emails every day from retailers across the country saying this is one of the worst years of trade they can remember. If business doesn't start to improve, small retailers who are already struggling to hold onto staff will have to start making employment cuts.
"Retailers aren't so concerned with how their trade is faring compared to the month before - this will always vary. However, when retailers compare current trading conditions to the same time the year before they get a clear indication of how business is going.
"Retail sales across all states and categories have increased only 1.9 per cent from June 2009 to June 2010. This is not real growth; it's well below healthy levels for the sector and it's a very real signal for the RBA to hold interest rates until retailers begin to post some significant and consistent growth.
"An even closer look at year-on-year retail sales for particular retail categories including clothing, footwear and personal accessories (-0.8), department stores (-1.6) and household goods retailing (-1.0%) shows a decline in trade from June 2009 to June 2010," Zimmerman said.
Comments
Michelle
I thought June and July was bad.. but nothing is has prepared me for how bad August has been... I will definately be cutting all staff hours and working in the shop myself as much as I can.. It seems last year we had the stiumulus to stop us from cutting wages... Kevin Rudd told Australia that he had to prop up retail as we were one of the biggest employers ...! What happened this year.. six interest rate rises later.. and we are just holding on...!!! If summer and the warmer weather does not start soon... I am done for...!
Penny
Even us in the Mining City of Mount Isa are doing it tough. They say mining towns don't suffer as much as the big cities, but not this time. Having to cut back in every dept. Focusing more on cheaper floor stock labels than indent labels bacause of comitments and wholesale prices on indent labels.
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Sass
It is difficult to maintain your optimism and positive outlook when there are no real signs of improvement month after month. Unfortunately even though our sales have steadily decreased over the past 8 months in particular, operating costs have increased. Our already overly inflated rent increases at 5%pa, wages have increased as have our energy bills and the cost of buying stock. I have had to let my staff member go and am now working 7 days a week unpaid to keep things running around until we see some much needed growth. Bring on spring!! Hopefully the sunshine might encourage people to start opening their wallets again.