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The value of retail

By Richard Evans | 14 April 2009
It’s not often folks would contemplate the value of retail to the Australian community. The most common cry from savvy consumers is “never pay full retail” but it seems that is where thoughts about the importance of retail ends for many Australians. And that is a shame.

Retail is more than just the latest sale; indeed it is a vital component to the essence of what Australia is to all of us. This should be no melancholy romantic statement lost among the jargon of business, rather, if based upon the evidence, Australian retailing is undervalued for the role it plays to the wealth of our nation.

If we were to consider retailing as an industry then clearly it is a leading industry. It turns some $290 billion dollars contributing significantly to GDP; and it employs 1.5 million people representing over 10% of those employed. There are over 150,000 retail brands ranging from leading national names to the local retailer in regional Australia.

Compare these figures to other industries such as mining, transport and finance and retailing is clearly among the leading industries … but you wouldn’t know it.

In terms of opportunity, the retailing sector allows Australians easy access to being their own boss; it is usually the first job most of us enter; it exports its IP through the franchising model and it provides support for those who want to be employed on reduced hours to cope with other issues in their lives. Retailing is dynamic with its opportunity offerings … but you wouldn’t know it.

Wherever there is a grouping of population then we will find a retailer. Retailers construct a sense of community, they underpin their local areas through sponsorship and other support; they support charities and provide product or services to many who ask for help and they do it with a sense of community and social responsibility, not recognition. So when it comes to acknowledgement of the vital link between retail and the community where is it?

The bottom-line is this … the retail sector needs a strong united voice to promote and protect the sector.

The Australian Retailers Association has a new Council, a new Constitution and new management to provide a strong representative voice for retailers. Our preferred position is that we should have a united retail voice in Australia but it seems self interest is impacting upon other national groups that also want to have a strong retail voice. This leads to fragmentation, confusion and conflicting messages thus diminishing our strength of voice. We get it and thus seek unity but it seems others do not. So our new position is to ignore this self interest and work for the betterment of the retail sector … regardless of the issue.

The ARA is your voice and the evidence is clear in our recent activities on your behalf … we were representing you at the Fair Pay Commission arguing for no increase; we were at the Senate Inquiry arguing for relief within the Fair Work Australia legislation; we were at the Industrial Relations Commission arguing a better deal on Awards; we are arguing the retailer’s case regarding the Economic Stimulus package before the Parliament; we are submitting to government on retailers’ Federal Budget needs; we are accessing government funds to roll out education specific to retailers and we are working for all retailers.

Over the next few months you will see the ARA active on issues that affect all retailers not just sectional interests. And, we will be representing the sector’s interests to government on matters pertinent to the entire industry. We do this because it is worth it and to do less diminishes the value of retailing.

It’s time for self interest and old prejudices to be put aside and let’s place value into retail by repositioning it to the place of importance it deserves within the Australian community.



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