John Winning, CEO of the Winning Group, proprietors of Winning Appliances, Appliances Online and Big Brown Box, has today called on the Federal Government to focus more attention on the retail sector, saying it deserves more “acknowledgement and support” for the role it plays in the economy.
“We would have liked to have seen acknowledgement and support given to the retail and e-commerce sectors, as new avenues for prosperity for the Australian economy, particularly due to the development of the NBN,” Winning said. “There is potential for retail to play a more significant role in our country’s economic landscape, as the sector offers a diverse range of jobs for Australians, everything from truck drivers and offsiders, warehouse managers, sales professionals, administration finance and marketing professionals.”
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Speaking the day after Treasurer Joe Hockey announced sweeping cuts to services and major changes to benefits, Winning said this dent to confidence would only be short term, with a surplus budget providing longterm relief.
“The combination of cuts to family payments, increasing costs of medications and doctor visits and increases in petrol prices will impact consumer sentiment and slow retail sales in the short term, as Australian families will have less household disposable income,” the 30-year-old entrepreneur said. “However, there is a need to improve our deficit, to provide stability and stimulate Australia’s economy for the longterm confidence of consumers and the success of retailers.
“Although on a global scale Australia is viewed as having a strong and thriving economy, the increasing deficit would suggest we need measures to make our economy more stable for the future. A less volatile economy means that more Australians will be more comfortable with their financial situations and are then more inclined to not only spend on needs, but also wants.”
Winning’s macroeconomic view of the budget contrasts sharply with the Australian Retailers Association’s executive chair Russell Zimmerman. He said that the doom and gloom surrounding the budget would break all the slowly regained momentum.
“We are only just beginning to see retail and the services sectors regain momentum after many years in the doldrums. It would be a travesty if these tax increases impacted on that recovery to the sector and the services economy.”
That said, Zimmerman did praise the Federal Government for abolishing the so-called Carbon Tax and cutting around $1 billion per annum in what it calls “red tape”.
Although normally very tightlipped about the Winning Group’s financial position, John Winning did let slip that Winning Appliances, no doubt spurred on by the opening of its glamorous new flagship Redfern store, achieved 13 per cent year-on-year growth during April 2014, while its online arm improved 12 per cent. Winning attributed this to a mini-boom in the housing market.
“Currently, dwelling approvals are up 30 per cent to record highs, with 4-storey approvals being the fastest growing area,” Winning said. “This should have a positive impact on consumer sentiment and result in growth for some retailers.
“From an appliance retailing perspective, we have noticed that the low interest rates have encouraged people to purchase appliances for investment properties, new homes, as well as for renovating their current properties to get them ready for sale and take advantage of the property boom.”
Winning said Government plans to improve broadband coverage in regional areas would be a boon to online retailers as it would open up more consumers to e-commerce services.