Australia’s peak retail body, the Australian Retailers Association (ARA) said the Reserve Bank of Australia’s (RBA) decision today to again hold cash rates at 4.35% will be a relief for retailers.
ARA Chief Executive Officer Paul Zahra said retailers continue to battle the dual headwinds of slow spending coupled with higher costs of doing business.
“Many Australian household budgets remain under significant pressure,” Mr Zahra said.
“Whilst there is no immediate relief in sight, today’s announcement will help keep consumer and business confidence steady.
Mr Zahra said small businesses are particularly vulnerable.
“We’ve seen extraordinary resilience from our retail community in recent years. But with ongoing pressure from many directions, many small businesses are struggling to cope,” he said.
“From the impacts of retail crime and ongoing labour shortages to rising costs across the board. Alongside this we have seen the most aggressive industrial relations reform in many decades, which also has flow on costs and impacts on business leaders and their teams.
New data from the ARA and American Express Small Retail Index also shows that financial strain is taking an emotional toll on small retailers.
33% of small business owners are taking on more work than they usually do, 30% say they have never felt more stressed, and 34% say they have worked even when sick during the past 12 months.
Mr Zahra said the ARA will continue to advocate for relief measures from the Federal Government.
“We need urgent action to ensure Australia’s $420 billion retail economy not only survives but thrives,” he said.
“It’s essential that retailers, both small and large, have the confidence to continue investing in their businesses over coming months.”
