Summary of Retailer Amended Recommendations

Australian Retail(er) Umbrella Industry Association Review 2009

 

Submissions Summary and Received  Comments  Investigating  the Possible Formation of  One Federated Peak Australian Retail(er) NRF Type Retail(er) Organisation During 2008 - 2009

Initiated by The RETAiL Alert Group
March 2008–Amended January 2009
 

Summary of Review Contents

1.               Introduction

2.               Submissions Recommendations Summary

3.               Retail(er) Industry Steering Committee Comparisons

4.               Current Issues for Government Relations Consideration

5.               Australian Federated Retail Sector Umbrella Industry Association Mission statement Options

6.               Australian Federated Retail Sector Retail Industry Umbrella Association; Next Stage Moves

7.               Comments and Recommendations from Received Inputs

8.               Supporting Article found on the RETAiL Alert Bulletin Website; http://www.retailalert.com.au

*****************************************************************
 

1. Introduction

 

·         Firstly, we would like to thank those many retailers and interested parties who assisted us in the preparation of this important retail(er) industry changing initiative report.

 

Your contributions were most valuable in helping us formulate the key recommendations detailed in our summary report.

The Australian retail industry is particularly grateful for the time taken by those contributors within and outside the Australian Retail(er) Industry who presented incisive, market relevant perspectives on the state of current retail(er) industry association support for average Australian retailer's and SME's in 2008.

 

·         We would also like to recognise the NRF (National Retail Federation US) for supporting a global retail industry association reference site platform.
The NRF Website has been used as a basis of US Industry Association deliverables compared with current Australian Retail Association(s) deliverables in 2008.

 

·         It is recommended that readers of this report look at the services and infrastructure provided to US and International retailers by the NRF, comparing the NRF services delivered to the average US retailer to those services and information sources currently available to the average Australian retailer in 2008?

 

·         The contribution made to International retailing by the NRF is a credit to those major and small US retailers responsible for the NRF’s direction, providing the time, effort and valuable retail information resources to retailers world wide including Australia.

 

·         It would be useful for ‘super’ major Australian retailers to observe how the NRF provides inclusive services to ALL US retailers irrespective of size and market share.
 

·         Special reference should be made to the guidance and advice on all matters retail delivered by the NRF Website, and regular newsletters.

 

·         Australian retailers’ would be well advised to compare the services provided by the NRF, supporting the initiative to deliver an organisation of similar pedigree to advise on the day to day information and support needs of the average Australian retailer on demand; preferably on-line.

 

·         It is up to all Australian retailers and interested parties to demand the formation of an Australian equivalent of the NRF in 2008, as Australian retailing moves into uncharted and uncertain waters.
 

·         Following are the recommendations received to deliver the new Australian Retail(er) Umbrella Industry Association to the Australian retail(er) community.

                             **************************************************************** 
 

2. Submissions Recommendations Summary

 

 

• Only one national Australian Federated Retail(er) umbrella Association required, servicing the needs of all Australian retailers, with state support and advisory committee structures established, including Tasmania and the Northern Territory.

 

• The name of new Australian Federated Retail Sector Retail(er) umbrella Association and structure of same to be determined by an industry panel under federal government departmental guidance.
  
   
• Submissions received showed a majority supporting the existing ARA as the proposed umbrella body.
  But there were a significant number of retailers, mainly ‘super’ and major retailers supporting ANRA, as the proposed national Federated Retail Sector retail umbrella association.

 

• It is suggested that the proposed government advisory panel consider a new over-riding association name, should there not be a meeting of the minds on using an existing association name.

 

• Location of national body; majority recommended Sydney, a number Melbourne, a few Canberra.

 

• The majority of submissions recommended a national body with strong state representation supported by advisory committees.

 

• There were a significant number of submissions that recommended a national office based in Sydney with a lobby office based in Canberra.

 

*********************************************************** 

 

3. Recommended Federated Retail Sector Retail(er) Industry Committees  

 

Proposed Australian Federated Retail Sector Retail(er) Association Committee Support Structure

Proposed Sub-Committees

 

Government Relations	Retail Sector Legislation Harmonisation Treasury and RBA Privacy ACCC Productivity Commission States Environment
Shopping Centre Relations and Tenancy	National Retailers   Specialty and SME Retailers   Planning Issues   Lease Harmonisation   Dispute Resolution   Environment
Retail Information Technology and Communication	ARTS   POS   RFID   ERP   Communication
Supply Chain	Standards EPC - RFID Transport and Logistics Product Safety
Employment	Education and Training   Industrial Relations   Trading Hours
Store Operations	Trading Statistics   Trading Trends   OH&S   Merchandising and Display   Multi-channel Retailing   Marketing and Advertising
Loss Prevention	Trends Procedures Systems Training
Finance	Banks Card Fees Tax Audit Procedures
Environment	General Strategy   Materials   Sustainability   Energy   Transport

 

*****************************************************************

 

4. Current Issues for Government Relations Consideration

 

1.               Required Further Interest Rate Cut – Possible Serious Effect on Retail Employment Levels Looming

2.               Role of the ACCC; Anti Trust; Chapter 11

3.               New Mandate for the RBA

4.               Correct application of the Infrastructure Build Fund

5.               Harmonised Lease Legislation

6.               Harmonised Trading Hours

7.               Harmonised OH&S Laws (New)

8.               Harmonised Consumer Legislation

9.               Harmonised Retail Planning and Development Legislation

10.           Harmonised Retail Education and Training

11.           Textile Clothing and Footwear Review

12.           Retail Sector Environmental Issues and Policies

13.           Clear understanding of Unfair Dismissal Laws relative to Retailers

14.           Costs of International and Local Transport Cost on Australian Consumers

15.           China to Shelf Bottlenecks and Costs to the Australian Consumer

16.           RFID; The Next Supply Chain Revolution – Government Support

17.           Current Imbalanced Relationships with the Shopping Centre Industry; Smaller Retailers

18.           Productivity Commission Reports

19.           Reduction in Government Imposed Red Tape Costs for the Australian Retailer

20.           Grocery Pricing Inquiry

21.           Government Youth Binge Drinking Initiative - Effect on Retailers

22.           Paid Maternity Leave

23.           Digital Australia - Effect on Retailers

 

*****************************************************************
 

5.     Federated Retail Sector Industry Association Mission Statement Options

 

Proposed Mission Statement Government Relations

New National Australian Federated Retail Sector Retail(er) Umbrella Association

 

• (Title to be determined) …is the voice of retailing in Australia.

 

• (Title to be determined) … government relations lobbying team to represent retailers of all types, physical and on-line; from mass merchandisers and specialty stores to department stores, discounters, supermarkets and SME retailers on matters of common retail interest before Federal and State Governments.

 

• (Title to be determined) …the government relations lobbying team analyses proposed laws and regulations, testifies before committees and agencies, and lobbies and educates government about retailing and retailer concerns and priorities.

 

Current NRF (US)

Government Relations Mission Statement for Comparison.

 

NRF is the voice of retailing in the nation’s capital. NRF's lobbying team represents retailers of all types -- from mass merchandisers and specialty stores to department stores and discounters -- before Congress and the Administration.

The team analyzes proposed laws and regulations, testifies before committees and agencies, and lobbies and educates government about retailing and retailer concerns and priorities.

 

                                                                                 *******************************************

 

Proposed General Mission Statement
New  Australian Federated Retail Sector Retail(er) Umbrella Association

 (Title to be determined) ..is Australia’s largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, bulky goods, specialty, discount, catalogue, Internet, independent stores, chain restaurants, pharmacy stores, newsagents, hairdressers and supermarkets stores as well as the industry's key trading partners of retail goods and services.

(Title to be determined)  ..represents an industry with more than ( to be clarified) thousands of  Australian retail companies, more than (to be clarified) million employees - about one in (to be clarified) Australian workers - and estimated 2008 sales of (to be clarified) billion.

 

The Australian retail(er) industry is a critical sector of the Australian economy and requires an appropriate industry umbrella body to represent the needs of all retailers to government(s).

 

As the industry umbrella group, (Title to be determined) also represents over (to be clarified) state, national, international retail associations, retail engaged interest organisations and retail vendor groups.

Under (Title to be determined)  ..  retail umbrella, sit (to be clarified)  association groups…………..
                                                                 ****************************************************************

Current NRF Mission Statement for Comparison

The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants, drug stores and grocery stores as well as the industry's key trading partners of retail goods and services.

NRF represents an industry with more than 1.6 million U.S. retail companies, more than 25 million employees - about one in five American workers - and 2007 sales of $4.5 trillion. As the industry umbrella group, NRF also represents over 100 state, national and international retail associations.

Under NRF's retail umbrella, sit 4 association groups including: the Association for Retail Technology Standards, the National Council of Chain Restaurants, the Retail Advertising and Marketing Association and Shop.org. Additional information on these groups can be found at NRF Divisions. 

ARTS (Association for Retail Technology Standards);	http://www.nrf-arts.org
shop.org;	http://www.shop.org
RAMA (Retail Advertising and Marketing Association);	http://www.rama-nrf.org
NCCR (National Council of Chain Restaurants);	http://www.nccr.net

*****************************************************************
                                          
Australian Federated Retail Sector Retail Industry Umbrella Association; Next Stage Moves

1.    An advisory panel, under government department supervision, to recommend the requirements and procedures to form the new Australian umbrella Retail(er) Association during 2008 and 2009.

2.    Time for the advisory panel to report; 60 days.

3.    From date of approval to market; 12 months.

4.    An interim steering committee formed of all parties to provide policy inputs to governments until the formal formation of the new Australian umbrella Retail(er) Association.

*****************************************************************
Final Points

1.    A copy of this report has been sent to all parties, even those who did not make a written or verbal contribution.

2.    A copy of these recommendations has also been sent to the relevant federal minister for consideration and advice.

3.    We would like to again sincerely thank those retailers and interested parties who have made major submission contributions in production of our summary. 

4.      Note was taken of contributions from individuals and organisations who in our opinion should be considered when nominating persons and organisations for the proposed advisory panel.

5.    We look forward to seeing this initiative adopted in the interests of all Australian retailers and SME’s during the trading years 2008 and 2009.

We commend this report for serious consideration.

Great 2008 Selling and Trading.........
Tony Standley
Principal
The RETAiL Alert Group (Australia)
Mobile +61 (0)41 924 0497
e-mail info@adsass.com.au
Fax +61 (0)2 9987 0633
Website http://www.retailalert.com.au
 
THE PEOPLE WHO GET RESULTS.................
 
*****************************************************************

7.  Comments and Recommendations from Received Inputs

 

• A house divided falls…?

 

• Retailer Industry Associations divided against themselves will also fall; it is happening now…….see the retailer responses?

 

• With the fracturing of the ARA, the Australian Retailer Association, one of Australia’s key sectors representative bodies in retailing Australian The legions of average Australian Retailers and SME’s have lost their voice in speaking to government.

 

• The ARA is a shadow of the power and influence it had up to the mid 90’s over the needs of the average Australian Retailer and SME?

• A disaster for the average retailer, especially as the average Australian retailer and SME moves out of easy boom times into normal or below par trading conditions.
   
• Without a strong retailer single representative organisation, the average Australian Retailer and SME is on a hiding to nothing with no single voice to counter what many perceive to be a totally distorted retail marketplace, with a duopoly of ‘super majors’ and an oligopoly of powerful landlords controlling the Australian retailing landscape.

• From feed-back there are none of the retailer supported committee structures operational that were operating up to the mid and early 2000’s; that in itself is a disgrace.
   
• Even governments and organisations representing the powerful landlord lobby would prefer, in fact insist, speaking with only one retail industry body; we don’t care what it is called?
   
• The retailer response feed-back so far is that unless there is a coming together of the two main retailing associations and other disparate parties under one ‘broad church’ umbrella organisation such as the US NRF, Australian retailers will cease receiving adequate industry association support in the face of challenging retailing times.

• Without the coming together of current retailer associations purporting to represent the interest of mainstream retailing in Australia, the current ‘crop’ of different interest retailer associations will have difficulty providing support resources for retailers in general; it is happening now.
   
• We understand that the ‘super’ major retailers have a duty to protect their own narrow interests, but a common view being expressed is that it would be more ‘politically healthy’ for major retailers to support an umbrella industry association covering the needs of all Australian retailers.

• It might be in the best interests of major Australian retailers to be somewhat ‘invisible’ operating under the umbrella of an all in nation retailers association; it works for the big retailers in the States, it should work here.

• Bluntly without the majors’ support as provided in the past, organisations such as the ARA and other smaller industry based retailer organisations will fail financially; they cannot survive on the interest from the sale of assets forever. They are already struggling to deliver on services and original national retailer and SME committee structures supporting the average retailer in day to day activities; not in anybody’s best interest for this to continue.

• The ARA nationally in particular is already a shadow of its former self.

• Despite best intentions, the ANRA is seen as the ‘big boys’ club by government with little influence in the interests of the broad retailer community, but the ANRA could have the ‘muscle’ to become that umbrella NRF type organisation retailers are seeking.

 

• Australian retailers need one credible voice to communicate with government not several confusing voices.

• From input received however, the ARA is still the preferred front runner as an industry name; maybe it is worthwhile considering an approach strategy for the ANRA to be the first mover to engage with the ARA; would be seen as a positive action with first mover advantage?
   
• From my recent visit to the US the NRF has the same issues of competing retailer interests but by focusing on key national retailer issues, providing however one place for retailers to support financially.

• While I was in New York, the NRF sent the Bush administration a ‘stinger’ on interest rates; within three weeks the Fed started to move US interest rates down.

It would be naïve for the drop in US interest rate to be credited to the NRF, but from the NRF members view their association had the courage to front up and deliver a strong message on behalf of their members; and delivered the possibility of retailers paying next years subscription fees.

 

• Retailers need more than the occasional head bobbing onto the TV screen.
   
• Retailers want to be represented by an organisation that can take the major retailing issues of the day head on to government and powerful industry groups representing the banking industry and the landlord lobby.

 

• ANRA does not have credibility for the average Australian retailer and SME, as already said they are the ‘big boys’ club.

 

• Major Australian Retail Chains and retail SME’s will not be prepared to contribute funds to a general retail industry association(s) which does not have the input and support of the major retailers; politically not a good look.

 

• There was once a vibrant broad church industry retailer body which had the respect of retailers, government and the community in general, well resourced and funded; sure it had problems but has to be better than what we have right now; a confused mess of different but same interests.
   
• Australian retailers large and small need one industry association voice to;

1.    Communicate ‘balanced’ needs of all retailers to governments.

As an example look at the costs of getting goods and getting exports out of Australia; the possible closed shop arrangements between powerful transport and logistics organisation holding Australian consumers and exporters to ransom?
 

2.    Provide state of the art retailer training resources to all retailers including SME’s in a tightening labour market; a major retail issue.
 

3.    Tackle the difficult issues of landlord relationships; get harmonisation of retail legislation in place; challenge the control over ‘closed market’ shopping centres in the interest of their members; where appropriate work with the ACCC and The Productivity Commission to provide coherent arguments to re-balance the Australian retail industry in the interests of Australian consumers.
 

4.    Develop relevant policies and support for retailers on e-commerce and technology. The ARA played a pivotal role in the introduction of bar-codes and EDI into Australia; where is that vibrant e-commerce committee to drive the next supply chain revolution to market; RFID?
 

5.    Deliver an industrial relation safety net for retailers including award advice. A leading strength of the previous ARA structure.
 

6.    Develop policies to tackle emerging issues such as climate change and the effect on retailers; take shrinkage, tax advice and associated matters.  

• For the Australian 'broad church' NRF model to succeed it has to cater for the needs of major retailers such as Woolworths and Wesfarmers; specialty chains; retail SME's, and industry associations such as the Bulky Goods Retailers Association Pharmacy Retailers, News Agents, Liquor Retailers.
   
• As with the NRF the Australian model would need to have close attachment to retailer support organisations such GS1 and ARTS.
   
• Our initiative would be to use our good offices as a neutral party, in an endeavour to create a discussion climate where this can happen again for the Australian retail industry in 2008; an honest broker role.
   
• The initiative undertaken by The RETAiL Alert Group, and friends of the Australian retailing industry makes commercial and practical sense, not only in the ‘super majors’ best interest, but also the best interest of the legions of medium size and SME retailers who make up the broad church of the Australian retailer community.
   
• To repeat, retailers do not care if it is the ANRA, ARA or another name represents their interests in what is a changing, ‘interesting/difficult’ retail trading environment; they are looking for that one association preferably Sydney based with a small lobby office in Canberra to look after their interests.
   
• It would be a tremendous help if the ‘super majors’ could see their way clear to support this initiative in the interests of all retailers.
   
• The ‘super majors’ should take a ‘champions’ role on this matter.
   

*****************************************************************

9.    Supporting Article found on RETAiL Alert Website

See http://www.retailalert.com.au

It is about time that the ARA, the NRA and the ANRA and others stopped the bickering……..?

It is about time that the ARA, the NRA and the ANRA and others stopped the bickering and concentrated on the real needs of Australian Retailers, especially in a retail climate which is becoming difficult for some and ‘interesting’ for most.

The bickering and power play between Australia’s two major peak industry associations and others is developing into a farce, with no commercial or support benefit being delivered to the average Australian retailer.

The time has come to draw the line in the sand and force the two key competing industry associations and others together.

Let's deliver a Sydney based NRF Industry Association ' broad church' model to the Australian Retail Industry.
Why Sydney based, we talk to the reasons further into our article.

For the Australian 'broad church' NRF model to succeed it has to cater for the needs of major retailers such as Woolworths and Wesfarmers; specialty chains; retail SME's, and industry associations such as Bulky Goods, Pharmacy Retailers, News Agents and Liquor Retailers.

As with the NRF the Australian model would need to have close attachment to retailer support organisations such GS1 and ARTS.

The ARA / ANRA / NRA and other organisations ‘who’s in charge’ debate is unnecessary. Retailers’ valuable time is being wasted by getting involved in power plays, and on certain occasions actions and grandstanding by some organisations are bordering on childish behaviour.

We are getting daily calls from retailers large and small asking for advice where to spend support time and who to deliver this years subscription fees to….?

Australian retailers large and small need one industry association voice to;

1. Communicate ‘balanced’ needs of all retailers to governments.
    
2. Provide state of the art retailer training resources to all retailers including SME’s.
    
3. Tackle the difficult issues of landlord relationships.
    
4. Develop relevant policies and support for retailers on e-commerce and technology.
    
5. Deliver an industrial relation safety net for retailers including award advice.
    
6. Develop policies to tackle emerging issues such as climate change and the effect on retailers; take shrinkage, tax advice and associated matters.

Right now neither ARA nor the NRA has the funding, locations or enough people to deliver the support needs of Australian specialty chain, medium and SME retailers.

·         The ARA has the right major capital locations, assets, some very good people and an excellent reputation with government.

 

·         The NRA has the energy, some new ideas, some good people and the ear of major retailers.

The NRA has the energy, some new ideas, some good people and the ear of major retailers.

 

·        ANRA has the major retailers who have the major funding source.

Whatever the outcome, we have a view that the main retailer industry association location should be Sydney with a small lobby office in Canberra.
If there was a 'blank sheet' approach, as well as taking a 'broad church' view, in 2008 Sydney would be chosen by default as the natural national industry association location.

Geographically Sydney sits between the well established Victorian retail community and the growing Queensland retail market.
Queensland retailers have strong views and have vocal organisations purporting to represent the specific needs of Queensland retailers.

Whether this is true can be debated, but the new 'broad church' body will be obliged to work hard to satisfy the perceived or actual different needs of Queensland, SA, WA and Tasmanian retailers.

For any distance managing of State bodies and organisations it makes perfect sense for Sydney to be the central national base for the reconstituted national retail organisation.

·        From a day to day managing of retailer issues it also makes sense to make Sydney the national base.

Two major deliverables from the new retailer body will be to provide substantial support on Tenancy and Technology matters.

Sydney has the majority of Shopping Centres and also has the Head Offices of the majority of Retail and Associated IT organisations plus substantial Banking and Finance Head Offices.

Distance managing relationships with the above from Brisbane or Melbourne makes no sense; the costs incurred unnecessary and the communication outcomes will be probably poor or irregular token contact only.
Although it is true that business communication in 2008 has improved substantially, nothing substitutes from the real benefits of daily face to face contact with parties such as the landlord community, technology provider community and financial institutions.

From experience it is the anytime off the cuff 'coffee chats' which will maintain and grow retailer relevant relationships with landlords, e-commerce / IT providers and financial institutions.

·        For all the above reasons and probably more, Sydney needs to be the national base for the new reconstituted retail body; we hope this makes commercial sense to the readers of this article.

Before either body comments on services provided by currently established retailer representative organisations, believe me the feed back is that services to retailers, particularly smaller retailers are being provided in a timely efficient manner is an illusion only for the average retailer.

A lot of current ‘support’ is Website flummery poorly crafted and out of date; trying to find someone with experience to talk to is 'hard yards'; if opinions are gained from different State or purported industry associations the messages are different and many times confusing.

Surely in 2008 it makes sense that the resources of the ARA, the NRA and the ANRA are pooled and the needs of all retailers are delivered by one well funded and resourced industry body; the name does not matter; it is the deliverables delivered to ‘paying’ retailer members that matters.

·        Surely it makes sense for governments state and federal to deal with one retailing industry body; the same applies to the Shopping Centre Industry.

·        When common sense prevails, and Australian retailers have the one industry body to talk with, maybe it would be prudent to look at the construction of the re-constituted body with committee structures which are relevant to retailer’s time availability and real world retailer needs in a competitive 2008 retail environment.

2008 retailers do not have the luxury of long winded ‘get to location’ industry association meetings; in 2008 technology should deliver video conferencing; WebEx and similar communication tools to bring committee’s together to advise state and federal councils.

The same technology tools should be applied to industry retail training.

As an individual who has volunteered substantial time to Chair retail industry committees (that really delivered) it saddens me to see the demise of the genuine retailer involvement provided in the past by vibrant retailer inclusive 'real world relevant' retail industry committees.

The enemies of the average retailer must be laughing at the decline industry general retail committee support being provided by the two competing industry associations?

·        To be blunt none of the current retail sector associations have the man / woman power or funding resource to deliver what is needed by the average Australian retailer in 2008 and beyond.

The retailer advisory committee structures are a joke with hardly any retailer involvement.

No one persons fault; the man / woman power and time resources are no longer there.

Also to have an industry association propped up by major retailer funding is not healthy.

The Australian retail industry is far more than three or more major retailer groups and an oligopoly of landlords.

The danger to the ARA, the NRA the ANRA and other well meaning organisations will be the death of the 1,000 industry membership funding renewal cuts.

Retailers will not subscribe money or time to the ARA, the NRA and the ANRA; there is only room for one industry association in Australia from a membership funding perspective; and then to one that delivers daily benefits to its membership.

The time has come to draw the line in the sand and force the three key competing industry associations and others together.

As a long term friend of the retail industry the writer is prepared to provide time and resource with others in an endeavour to broker a joining of the ARA, the NRA and the ANRA into one Federated Australian retailing industry representative body.

I would welcome feed back from others who would be prepared to deliver their time and resources to make this happen.

·        The objective; to deliver a single voice Sydney based retailer industry association with the adequate membership, funding and resources to deliver the best service and advice to the Australian Retailing Community in 2008 and beyond.

I welcome your comments and support for change.

·        Let's deliver that Federated Retail Sector NRF Industry Association model to the Australian Retail Industry.

Let’s make it happen now in the interest of all Australian retailers.

Great 2009 Selling and Trading.........
Tony Standley
Principal
The RETAiL Alert Group (Australia)
Mobile +61 (0)41 924 0497
e-mail info@adsass.com.au
Fax +61 (0)2 9987 0633
Website http://www.retailalert.com.au
 
THE PEOPLE WHO GET RESULTS.................