The Australian Retailers Association (ARA) and the National Retail Association (NRA) strongly support the focus of the Albanese Government on productivity in its second term.

Responding to the Prime Minister, Anthony Albanese’s National Press Club address yesterday, ARA Chief Executive Officer, Chris Rodwell said “every Australian has a vested interest in supporting the competitiveness of Australian businesses by lifting productivity”.

“It is essential if living standards are to rise,” he said. “It’s also essential if we are to protect and grow jobs. That’s especially relevant for the retail sector because it employs more than 1.4 million Australians, making it the single largest private sector employer in the nation.”

Addressing disruption

Competition in retail has never been so fierce, he added, noting the disruption of ultra-low cost operators such as Temu and Shein and supply chains, and rising energy costs. Further, the adoption of AI and other technology applications is advancing rapidly in the sector.

“In the face of this disruption, Australia’s inclination has been to add to regulation, not to repeal it,” Mr Rodwell said. “Sadly, we have climbed a summit of ‘peak’ regulation and firmly planted an Australian flag on it.

“We must retreat because this mountain of regulation comes with a cost. Governments see it in flagging economic performance. Retailers see it in the cost in doing business. Workers see the cost in decreased job opportunities. Regrettably, Australians see the cost at the checkout.”

Sustained commitment needed

Mr Rodwell said it will take sustained commitment to address “the decade long malaise”.

“It can’t be a theoretical exercise. It will require a broad range of government agencies to commit to targets that deliver genuine reform. This need not be an ideological debate. It needs to be a discussion grounded in common sense,” he said.

“The ARA and NRA have made significant contributions to recent policy enquiries. We look forward, in the coming months, to deepening this contribution, whether at the Productivity Summit later this year or through other forums and discussions.”