These comments can be attributed to Margy Osmond, ANRA CEO:
All bets are off for a happy retailing Christmas after the RBA decided to lift the cash rate from 4.5% to 4.75% today.
“With Christmas just around the corner retailers will be worried about the most important period in the retail calendar as they round the last furlong before
Santa comes riding in on his sleigh.
“Of 1000 Australians asked just last week what their spending intentions would be with a rate rise – almost 40% said they would slash their spending – a
disasterous blow to the retail sector.
“Retailers have raised their concerns with the RBA as the sector remains in the outside lane, and lagging behind, in the two speed economy – which shows
no signs of evening out any time soon. An interest rate rise before Christmas will delay retail’s recovery even further.
“The high Australian dollar has been great for consumers, with low prices at home and the opportunity to purchase online overseas. Retailers have been
passing those savings on to customers, even though it means they have to sell more product to maintain profitability. And with high numbers of internet
shoppers, they are now competing with overseas retailers as well as those at home.
“With these challenges the last thing retailers need is for consumers discretionary spending to be slashed by an interest rate rise.
“Almost half surveyed in the 25-34 year age bracket – first home buyers – would cut spending, while 45% of the 35-44 year olds would reduce shopping.
The continuing trend in these statistics is that any interest rate increase hits retailers, and it hits them hard,” Mrs Osmond said.
How would another interest rate increase impact on your retail spending
habits?
Overall
Male
Female
18-24
years
25-34
years
35-44
years
45-54
years
55-64
years
65+
years
Reduce my retail spending
39.36%
38.71%
40.00%
30.71%
49.18%
45.18%
46.24%
38.41%
20.38%
Have no impact on my retail spending
59.84%
60.48%
59.21%
68.50%
50.27%
53.30%
53.76%
60.93%
78.34%
Increase my retail spending
0.80%
0.81%
0.79%
0.79%
0.55%
1.52%
0.00%
0.66%
1.27%
NEWS 
