Getting the retail sector back on its feet must be a priority in the Federal Election, with retail contributing almost one fifth of the nation's Gross Domestic Product, the Australian Retailers Association (ARA) and National Retail Association (NRA) said today.
ARA Chief Industry Affairs Officer Fleur Brown says retail contributes $430 billion annually to Australia's economy and is the largest private sector employer, making it a cornerstone of community wellbeing.
"Retail performance impacts every Australian and it's clear we can't have an economic recovery without a retail recovery. With a thriving retail sector, we can have a prosperous Australia.
"Retailers have been waiting for a recovery for five years but instead remain saddled with massive cost blow-outs amidst an ongoing cost-of-living crisis. Primary growth barriers include: low consumer confidence, increased regulation & compliance, higher leasing, energy and wages costs.
"We are calling for policies that provide a foundation for growth - including targeted support for small, medium and family-owned businesses who make up the majority of our sector. We also need federal leadership to harmonise outdated and duplicated state and territory regulations.
"The sector has been subject to an endless reform agenda that has added complexity rather than drive efficiency. For example, more than 80% of businesses have told us they need simplified retail award and pay rate systems, which are causing confusion for many retailers and employees around Australia. What we now need to see are policies that prioritise jobs and growth to allow the sector to thrive. "Retail Crime and customer aggression affects all communities in Australia, and unfortunately has been a growing issue. The majority (72%) of retailers say their businesses have been impacted by retail crime.
"The ARA and NRA are seeking Federal leadership that priorities worker and community safety through greater collaboration with the states and territories to reduce instances of retail crime. The primary focus should be on targeting organised crime syndicates, which contribute to instances of retail crime most significantly.
"Supply chain disruptions have been ongoing since the pandemic and have an impact on all Australians and many businesses. With increased weather events and ongoing global tensions, we can expect this to remain a high-pressure area. We are calling for prioritisation of national infrastructure to smooth out transport logistics in vulnerable and high-density locations. "Around half of the businesses we spoke to also felt that the Federal Government had been very unsupportive during the past challenging year, which is why it's more important than ever for the retail sector to work in harmony with the Federal Government."
NRA Interim CEO Lindsay Carroll says the upcoming election presents a crucial opportunity for both major parties to develop policies that support local businesses and, by extension, Australian communities.
"The retail sector needs certainty, and the recent RBA interest rate reduction brings us closer to a more stable operating environment. However, business certainty remains out of reach for many retail owners," Ms. Carroll said.
"Small businesses are the backbone of Australian communities and play a key role in economic and employment outcomes."
"We are urging both sides of government to prioritise investment in local retailers in light of the recent rate cut and to commit to policies that stimulate productivity and growth."
"Our retail workforce represents one in ten Australians, making it a significant part of the nation's workforce. While labour and skills shortages remain unacceptably high, we urge current and future policymakers to prioritise policies that create a business environment conducive to investment."
The ARA and NRA urge the government to act on the following core pillars:
Embrace a Growth Mindset
By simplifying outdated regulations and cutting red tape, retailers will have greater ability to adapt to market changes, while investment in small business will support growth and innovation.
Grow the Retail Workforce
Retail is a key employer nationwide and must remain a sustainable career option. Promoting it as a long-term pathway will boost workforce participation, while ongoing professional development will encourage a more diverse workforce.
Collaborate on Community Outcomes
Australian retailers face economic and social challenges, including supply chain disruptions, rising retail crime, and public health concerns. Strengthening supply chains, improving security, and investing in public health initiatives are key to supporting the sector's stability and adaptability.
Read the ARA's Election Policy Blueprint 2025: Thriving Retail for a Prosperous Australia.
