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ABS trade figures for April, released today, show the retail industry is at 0.0 per cent growth, prompting industry bodies to call for more to be done by the government to stimulate confidence and spending.

National Retail Association (NRA) CEO, Trevor Evans, said the result of 0.0 per cent growth, seasonally adjusted, indicated that penalty rates and public holidays over Easter stifled growth in April.

“Despite a strong start to the year, today’s figures show there’s still a lot of work needed to foster growth in the main lanes of the economy,” Evans added.

“April should be a perfect opportunity for consumer spending given the four-day Easter long weekend. Yet steep penalty rates on public holidays are shutting down our industry when it desperately needs to stay open,” he said.

Country holds breath in lead up to Federal Budget

Evans noted the April figures indicate that households and businesses held their collective breath in the lead up to the Federal Budget, waiting to see how it compared to last year.

“Retailers will be hoping to see better sales figures following the Federal Budget, given its focus on households and small business. For longer term confidence, we are hoping that the Senate passes the big ticket budget items promptly.”

The ABS reported that while consumer spending on household goods remained relatively unchanged (0.0 per cent), there were small rises in clothing, footwear and personal accessory retailing (1.3 per cent). There were falls in food retailing (-0.1 per cent) and department stores (-0.7 per cent).

Victoria, the Australian Capital Territory, South Australia and Northern Territory recorded small rises, New South Wales remained relatively unchanged. However Queensland, Tasmania and Western Australia experienced falls.

Winter weather increases takeaway food and clothing sales

Australian Retailers Association (ARA) Executive Director, Russell Zimmerman, said there were rises in cafes, restaurants and takeaway food services (0.8 per cent) and clothing, footwear and personal accessory retailing (1.3 per cent).

“These rises are to be expected when you take into account Autumn’s cold weather which had well and truly settled in during the month of April, prompting many Australians to start building their winter wardrobes and turn to their local restaurants and takeaway services for comfort food.

But he added: “While interest rates are sitting at an all-time low and the recently released Federal Budget delivered some good news for business, unfortunately there is still a lot of support needed to ensure the success of the retail industry into the future.

“The ARA also has strong concerns following the Fair Work Commission’s decision this week to increase the National Minimum Wage to $656.92 per week, or $17.29 per hour.

“The ARA advocated before the tribunal a realistic and manageable minimum wage increase of no more than $5.70 per week for the retail sector, so we are obviously concerned about the adverse effects this decision will have on retailers. The retail industry simply cannot keep up with excessive wage increases,” Zimmerman said.

Comparing year-on-year retail growth
If you look at this year’s April figures in comparison to last year’s April figures, seasonally adjusted, there is an overall growth in retail sales of 4.1 per cent.

Compared to April last year, household goods sales have grown by 8.5 per cent, clothing, footwear and personal accessory by 7.5 per cent, food by 3.5 per cent, cafes, restaurants and takeaway food services  by 3.3 per cent, department stores by 1.4 per cent and other retailing by 0.6 per cent.

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