Seven-Week Retail Delay To Cost Victoria $6 Billion
While retail sales were up 1.1 per cent during August, according to Mastercard SpendingPulse, a seven-week delay in the roadmap out of lockdown for Victoria will cost the sector $6 billion in lost profits.
“We appreciate the health and safety of the community needs to come first, but we can’t hide our concern for vulnerable retailers who will have been continuously closed for 13 weeks in total – which will sadly be unsustainable for some,” said ARA boss Paul Zahra.
Despite the huge setback, the reopening of NSW and ACT is likely to bolster the retail sector, heading into Chirstmas.
“There’s hope on the horizon with NSW set to start to open back up next month, [and] the ACT expected to follow suit,” said Zahra.
“The timing couldn’t be more important as retailers gear up for the festive trading season, when most discretionary retailers make up to two-thirds of their profits for the year – and there are positive signs it’ll be a buoyant sales period.”