Page 11 - Toy & Hobbby Retailer Magazine Nov-Dec 2018

Christmas trade marred by penalty rates hike
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including blind bags, slime and putty, squishies, collectibles and mystery eggs. The line is expected to launch in Australia through November-December.
IN October, the Fair
Work Commission (FWC) handed down its decision in the wake of the four- yearly review of the General Retailing Industry Award (GRIA).
350,000 casual workers who work on Saturday’s and after 6pm on weekdays had their penalty rates increased from 01 November.
In the wake of the FWC decision both the Australian Retailer’s Association (ARA) and National
Retail Association (NRA)
expressed their concerns
about small retailers and how they will cope with the increase during the Christmas trade.
“Small retailers in particular are already struggling with soaring electricity costs and increasing wholesale prices,” NRA CEO, Dominique Lamb, said.
“Now these mum-and-dad small business owners will need to absorb a hike in Saturday penalty rates for casual staff that many simply cannot afford.
“The retail sector is about to enter its busiest part of the year – the Christmas trade period – and the last thing they need is to be hamstrung with further costs,” she said.
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BEGIN INVESTIGATING
In response to consumer concern over the safety of squishy
toys, consumer authorities in Western and South Australia began investigating the toys in September. Consumer Protection in WA tested five different squishies, while Consumer
and Business Services in South Australia tested seven different squishies, all from varying suppliers. However, the concern seems to be unwarranted according to the Australian Toy Association’s compliance officer, Richard Hayman, who said that the Danish EPA study found that there was no migration of chemicals to
a sweat solution, meaning that a chemical could not be transferred to the hands or mouths of kids.
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the end of September. The store had been trading for 30 years, but felt the impacts of discount department stores, changes in kids’ play habits and the rise of technology.
Owner, Mal Geary, said that in the early years the business was booming, but since then, a lot has changed in the industry.
“I am sad. I have mixed emotions about closing the store,” he said.
Spending supported by dip into savings
DELOITTE Australia released its most recent figures into retail spending in Australia, in September.
According to the firm’s quarterly survey, retail spending improved in 2017-18, with retail sales growing 2.6 per cent, an improvement on the 1.9 per cent gain in 2016-17.
The survey also predicts that real retail sales growth for the current financial year is expected to remain around 2.6 per cent, with most of the spending growth occurring in the food sector.
However, during the period Deloitte found that household budgets remained under pressure due to stagnant wage growth and non-discretionary price rises. Consumers had to dip into their savings to support spending activity, which is why there was still an increase.
Deloitte Access Economics partner and Retail Forecasts principal author, David Rumbens, said that consumers spent most at the end of the financial year.
“The household savings ratio fell to a decade-low 1.0 per cent in June, a dramatic fall from the 4.7 per cent savings ratio in March 2017.
“This decline, has actually helped retailers. Consumers opened their wallets at the end of [June] with sales...on the upside.” ❉
MALS TOY SHOP TO
CLOSE AFTER THREE
DECADES
Mal’s Toy Shop closed at
Meanwhile, executive director of the ARA, Russel Zimmerman, echoed the concerns of the NRA.
“Christmas trade is the biggest trading season for retailers, and these increases to casual workers pay on Saturday’s and weekday evenings will certainly impact on trading hours around the country.
“Retailers usually thrive during the Christmas period, however this year, I’m concerned many retailers will bear the brunt of an unjust and detrimental decision.
“Casual staff are the lifeblood of the retail industry, and instead of seeing our retailers shine this Christmas, we will see them undertake more pressure and have to make serious decisions about their Christmas trade,” he said. ❉
SQUISHIES UNDER THE MICROSCOPE – AUSTRALIAN AUTHORITIES
NOVEMBER / DECEMBER 2018 TOY & HOBBY RETAILER 11