Retail in crisis: The election policies retailers want to see

Retailers call for urgent action ahead of Federal Election

With the Federal Election looming, Australia’s retail sector is calling for urgent government action to support an industry that contributes nearly one-fifth of the country’s GDP. The Australian Retailers Association (ARA) and the National Retail Association (NRA) say getting retail back on its feet is key to economic recovery.

Retail is suffering from cost-of-living pressures
Retail brings in $430 billion annually and is Australia’s largest private sector employer. But after five tough years, businesses are still battling rising costs and sluggish consumer confidence. Fleur Brown, Chief Industry Affairs Officer at the ARA, says retailers are drowning in higher wages, rent, energy costs, and red tape.

“Retailers have been waiting for a recovery, but instead they’re stuck dealing with massive cost blow-outs, We need policies that support small, medium, and family-owned businesses, as they make up the majority of the sector,” Brown said.

One major challenge is Australia’s complex and outdated retail regulations.

More than 80 per cent of businesses say the current award and pay rate systems are too complicated, leading to confusion for both employers and employees. The ARA and NRA are urging the next government to simplify these systems to allow businesses to thrive.

Retail crime is on the rise

Another pressing issue is retail crime and customer aggression, which has been increasing across the country. According to the ARA, 72 per cnet of retailers have been impacted by crime, with organised crime syndicates playing a significant role.

The retail bodies are calling for stronger federal leadership to improve safety and collaborate with state governments to tackle crime at its source.

Supply chain disruptions still a problem

Since the pandemic, supply chain disruptions have been a constant headache for retailers, and global tensions and extreme weather events are only making things worse. The ARA and NRA say the government must invest in national infrastructure to improve transport logistics, particularly in high-density areas.

Government support needed for small businesses

Lindsay Carroll, Interim CEO of the NRA, says small businesses are struggling with uncertainty. While the recent interest rate cut by the Reserve Bank of Australia (RBA) is a step in the right direction, retailers need more stability and long-term support.

“Small businesses are the backbone of Australian communities,” Carroll said.

“We need both sides of government to commit to policies that stimulate productivity, growth, and workforce development.”

Retail is a major employer, with one in ten Australians working in the sector. But with labour and skills shortages still a major challenge, the ARA and NRA want policymakers to create an environment that encourages investment and career development in retail.

What retailers want from the next government

Retailers say they are ready to grow but they need the right policies in place to do so. With the election around the corner, they are urging both sides of politics to make retail recovery a priority. The ARA and NRA have outlined key priorities for the next government, including:

• Simplifying regulations to cut red tape and allow businesses to adapt more easily.
• Strengthening the retail workforce by promoting retail as a long-term career path and investing in professional development.
• Addressing economic and social challenges such as supply chain issues, retail crime, and public health concerns.

For more details, check out the ARA’s Election Policy Blueprint 2025: Thriving Retail for a Prosperous Australia.

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