ARA welcomes Myer Hobart redevelopment
– Surrounding retailers set to benefit from flagship city store.
Peak retail industry body the Australian Retailers Association (ARA) said Myer’s announcement earlier today that it would rebuild its store in Hobart would give the city’s retail sector a much needed boost after 17 months of declining trade.
ARA Tasmanian spokesperson Damon Thomas said Myer’s multiple storey development in Hobart city would bring traffic back for surrounding retailers who have been hit hard over the past year and a half with a worrying decline in retail sales.
“The Tasmanian retail is struggling with the latest ABS figures showing a year- on- year sales decline of 2.8 percent in May 2011 compared to May 2010.
“Among the reasons for this disastrous year for retailers is an increase in household budget pressures while retail trade slumps and the cost of doing business soars.
“The opening of a flagship store not only generates excitement for and visitation to the store itself, but will also give people a new reason to visit the city of Hobart and reignite interest in the shopping experience, which can only mean good things for surrounding retailers.
“Myer will dedicate multiple storeys to their store, leaving additional floor space for specialty retailers to set up shop, which further creates a unique and exciting shopping trip for visitors.
“The decline in sales in Tasmania and the opportunities which arise from new store developments gives a clear case for a Retail Summit in Tasmania which would ensure businesses were consulted with to determine future directions for Hobart’s business district.
“Hobart will also benefit from the jobs created through new and busier stores as well as the tourism boost as both Tasmanians and other visitors find a new reason to head to the CBD.
“There might be issues in the short term for businesses in the CBD due to the store’s construction, however businesses will reap the benefits in the long- term, and it makes it an appropriate time for councils and the State Governments to get together and work out how they’re going to help retailers and ensure their future viability,” Thomas said.
For over 100 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia’s $240 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Fair Work (Registered Organisations) Act 2009 and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.auor call 1300 368 041.
• Mercury: What it will look like (at the moment you get a blank page but Mercury will fix it at 9am????
• Mercury: Business hopes rock-bottom:
BUSINESS confidence in the state economy is at its lowest level since surveys began in 1995.
The Tasmanian Chamber of Commerce and Industry’s survey of business expectations for the September quarter found retail sales revenue had fallen over the past 16 months and was expected to keep falling.
TCCI chief economist Mark Bowles said sales were at their lowest recorded level.
“What’s happening in retail markets is that there is a shift to thrift, so consumers are buying cheaper products. They are scaling down from premium brands to more thrifty brands,” Mr Bowles said.
He said the unemployment rate, at 5.6 per cent in June, was climbing and it was the highest in Australia but still well behind the 20-year average of 8.3 per cent.
Mr Bowles said “very tough trading conditions” expected for Tasmania contrasted with a high level of confidence in the national economy, which was benefiting from the mining boom.
Businessman Errol Stewart said the state could not afford to sit and wait for the black cloud to blow away.
The car dealer and hospitality entrepreneur said it was time for Tasmanians to get off their backsides.
…
