The Australian Retailers Association (ARA) is predicted significant growth for the retail sector this year, with a “short term pain.. long term gain” philosophy.
While the peak retail industry body has predicted a slow start for the first few months of 2009, the retail sector will experience growth from July to September once interest rate cuts kick into the economy and consumer confidence climbs back, according to ARA executive director Richard Evans.
“As Australians retailers move into the first quarter of 2009, trade will slow seasonally. February and March are traditionally the toughest time for retailers as the credit card bills from Christmas arrive…but employers must not have a knee jerk reaction to the slower times ahead and should hang on to staff as things are predicted to get a lot better heading towards the end of the financial year.”
Evans believes that the retail sector is the “barometer of the economy” and when it recovers, other segments will follow suit, three to six months after.
