Australian retailers across industries are expected to cut staff in 2013 in response to low consumer confidence and rising business costs, according to Russell Zimmerman, executive director of the Australian Retailers Association (ARA).

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“Retailers are dealing with a range of business costs and pressure, including penalty rates, which at their current levels are too high to be able to sustain employment and open during those weekend opening hours hotly sought after by Australian shoppers,” said Zimmerman.

“Extensive research done by the ARA last year clearly shows employees are looking for flexible hours, which a modern shopping economy can provide if it is able to break even after factoring in the costs associated with employing people, in particular on Sundays.

“Iconic retailers…have had no choice but to downsize in the face of tough economic times, and this is of concern to such a large economic sector.

“In the lead up to this year’s election, the ARA is calling on governments and alternate governments to work in the interests of workplace and economic reform and take the opportunity to prove they can create jobs and investment.”