The Federal Budget is just hours away from being formally announced. We have heard some of the government’s spending priorities already, including a significant cost-of-living relief package.
Last week the Reserve Bank hiked interest rates once again, bringing the cash rate to 3.85 basis points, adding further challenges to the sector to keep up with costs amidst flatlining consumer spending.
Retail trade figures for March were also released and underlined the urgency for cost of living relief. Under normal circumstances, we would welcome turnover growth of 0.4 percent in March and 5.4 percent for the year.
But with inflation running at seven percent, annual growth of 5.4 percent means retailers are actually going backwards, particularly when you take into account increasing rent and loan payments, wages, and input costs.
Small retailers in particular have been held back from economic growth since the pandemic. They are the most suspectable to changes in consumer behaviour and we’ve seen some notable business insolvencies take place recently, both here in Australia and overseas.
There is no doubt that we are looking to the government to deliver a strong response to inciting economic activity while still slowing inflation in tonight’s Budget, and I look forward to providing you with further intel on this in the coming days.
Cost of living relief aside, Budget time is a great reminder for businesses to be savvy in their forecasting and business planning.
With a tight labour market, business owners need to look no further than their existing talent pool to invest in business leadership. Retail can be a very rewarding career with an effective training program that delivers skills-based competencies tailored to the individual.
As a registered training organisation, NRA offers a range of workplace training and workshops to upskill your team, of which more information can be found here.
Our next workshop focuses on identifying and investigating misconduct in the workplace. NRA Legal will address the real issues affecting business, including how to identify bullying, discrimination, and harassment, effective interviewing techniques, and assessing witness credibility. This popular workshop is now in its fourth year, register your attendance here to avoid missing out.
Have a great week.