Joint research from the Australian Retailers Association (ARA) and Roy Morgan shows consumers are keen to take advantage of big-ticket and seasonal items or tax-deductible purchases. At the same time, retailers look to boost revenue amid discretionary spending and ongoing economic uncertainty.

“The sales have already begun,” said Fleur Brown, chief industry affairs officer at ARA. “Retailers have reduced prices on clothes, shoes, accessories, homewares, furniture and electronics. It’s a terrific opportunity for shoppers to find great deals for winter.”

Shift in spending patterns

Clothing, footwear and accessories remain the most popular categories, attracting 34 per cent of respondents, followed by household appliances and white goods (19 per cent) and electronics and tech (12 per cent).

The study also found a notable shift in shopping behaviour, with online spending declining. Just 44 per cent of shoppers plan to buy online, down 11 per cent from last year, suggesting a greater interest in in-store purchases, particularly for larger items.

An estimated 6.1 million Australians – 26 per cent of the adult population – plan to take part in the sales. Among them, 37 per cent intend to spend more than last year, 42 per cent will spend the same, and 21 per cent plan to spend less.

The average shopper is expected to spend $1714, up 4.6 per cent from last year. Consumers under 35 are forecast to be the biggest spenders, with an average spend of $2065 and a total contribution of $4.3 billion. This group includes 2.1 million shoppers, making it the largest cohort.

Men are expected to outspend women, averaging $2044 compared with $1430 for women, equivalent to a total spend of $5.8 billion for men and $4.7 billion for women.

Additionally, more consumers are planning to spend at higher levels this year. About 36 per cent intend to spend between $1000 and $4999, up 15 per cent from last year. Another 11 per cent plan to spend $5000 or more, up 5 per cent.

Brown said that the current trading environment made this year’s EOFY sales period critical.

“Given market volatility and persisting headwinds, these sales present an opportunity for retailers to stimulate growth as they begin to recover from the protracted spending downturn,” she added.

“Household budgets have been under significant strain, and these sales offer shoppers great value for money.”

• This story was originally published on Inside Retail Australia.

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Another proposed change would allow retail managers to choose an annual salary at a higher fixed rate over variable, hourly penalty rates.

ARA Chief Industry Affairs Officer Fleur Brown claimed that the amendments will remove some of the “enormous burden on small to medium businesses in particular” when it comes to keeping track of the GRIA’s hundreds of different retail pay rates.

“The complexity and onerous detail puts an enormous burden on small to medium businesses in particular who simply want to focus on fairly rewarding their team, doing the right thing by their customers and being part of the retail sector which is a crucial element of the Australian economy,” said Brown.

The Fair Work Commission will hear the ARA’s application to change the award next month. The hearing comes as a review into the GRIA initiated by the Federal Government in 2023. 

Australian Chamber of Commerce and Industry CEO Andrew McKellar has praised the move.

“It sounds pretty reasonable to us, from a business point of view,” he said on Sky News last Friday. “In a lot of cases, these awards really aren’t modern, but here’s a chance to introduce some flexibility.”

When asked by Sky News journalistTom Connell about whether small-business owners would have difficulty juggling new and old employee remuneration systems, McKellar said this could potentially be a concern.

“This is something they’d have to look at, whether they can accommodate that flexibility with a small workforce,” he said.

The post Push to change retail awards: How will it impact small businesses? appeared first on Inside Small Business.

Australian Retail Association CEO Paul Zahra says the incoming government will need to focus on labour and skills shortages, supply chain resilience, small-business recovery, inclusive and equitable workplaces and sustainable businesses.

He said retailers are looking for government leadership to advance social and economic outcomes in these priority areas.

“This election has occurred in the tightest labour market in more than 50 years and with a backdrop of surging inflation, so the new government inherits an economy that is not without its challenges,” Zahra said.

“Business costs are increasing, while staff shortages and supply chain delays are continuing to bite. Disruption remains an ongoing concern for companies large and small with conflict abroad creating a ripple of cost pressures for retailers and their customers.”

Zahra said CBD retailers and small businesses require a high level of targeted government support to recover.

He added that Australian retailers are keen to collaborate with the new government on climate change policies, addressing problems pertaining to supply chain transparency, energy use, food and textile waste, and the circular economy.

This story first appeared on our sister publication Inside Retail

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The fund will focus on advanced plastic recycling technology and tackle problematic single-use plastics like bread bags, chip packets, cereal box liners, chocolate wrappings.

“This new funding stream, dedicated to helping solve the problem of hard to recycle plastic waste, demonstrates our determination to invest in Australian industry, to grow the recycling sector and to create a stronger economy and stronger future for Australia,” Prime Minister Scott Morrison said.

Australian Retail Association CEO Paul Zahra said the newly announced initiatives will help provide retailers with more options to embrace the circular economy, improve recycling rates and reduce the amount of waste sent to landfills. 

Major grocery and food manufacturers, such as Arnott’s, Unilever, Mars Wrigley and others along with the Australian Food and Grocery Council (AFGC), also welcomed the announcement.

AFGC CEO Tanya Barden said that the grocery and manufacturing industry is committed to creating an effective and sustainable circular economy for plastic packaging.

“Our industry understands that we must maximise recycling to reduce the use of virgin plastics, build Australia’s advanced recycling capabilities and avoid harmful effects on the environment,” Barden said.

Minister for the Environment Sussan Ley said the funding will ‘fast track’ access to advanced recycling infrastructures.

“Australia has set a high bar as the first country in the world to ban the export of waste plastic, we will continue to take strong action on plastics in our own backyard by investing in technology, manufacturing capability and jobs,” Minister Ley said.

This story first appeared on our sister publication Inside Retail

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