Rubbery ABS retail sales numbers - the answer Monthly Category Sales already provided by some Australian Shopping Centre Groups
An efficient Australian retail sector demands accurate retail data and statistics from the ABS (Australian Bureau of Statistics).

Governments Federal and State, the RBA, Shopping Centres and retailers need certainty and accuracy in retail sales statistics – the current perceived ‘rubbery’ retail sales data provided by the ABS are perceived to be ‘best we can do with the resources’ numbers – reality not good enough in a mature economy such as Australia.

Inaccurate retail sales data distorts the RBA view on the CPI and therefore interest rates – creates lagging retail sales data for governments – creates uncertainty for those who wish to invest in the Australian retail sector, retailers and property developers.

·         Currently there is no independent government department compacting  of accurate retail sales data for Shopping Centre developers or retailers to use when assessing retail sales data or category sales per meter performance  – unless you pay substantial money to get the information, sometimes off the back of a truck.
 

·         New retailers have to rely on retail leasing managers to gain an understanding of sales per meter by category – sometimes with clouded numbers with very little sales history, often with disastrous results for the retailer.
 

·         International retailers looking to invest in Australia face the same problem – local chains wanting to expand, the same issue.

The answer sits in point four of the proposed Four Pillars of Harmonised Retail Lease Legislation as follows;

All Retailers’ Sales provided to an independent third party

To eliminate the perceived misuse of sales figures for rental increase purposes, individual monthly sales and annual audited sales figures should be only provided to an industry sector approved independent third party.

The independent body would compress individual retailers’ sales into Retail Categories for general and ABS retail statistics publication.

Should however the sole basis of occupation be a gross % of sales, (which can rise and fall in relation to sales within a centre) then individual retailer’s sales can be declared to the landlord via the independent third party on a monthly or annual basis.

Retailers’ should be able to review their individual sales figures within their category but not be privy to competitors’ sales other than those reflected at Category level performance or sales per meter averages.

Australian retailers’ need to be able to obtain sales per meter statistics by category and overall centre performance to assess their performance against the average of their competitors and assess market conditions in other Shopping Centres.

Shopping Centre Category sales figures should be an open document available for prospective tenant, Local Council, State Government, Federal Government and ACCC review.

The independent body to provide an open monthly and annual report on the sales performance status of reporting Shopping Centres by category by sales per meter, occupancy sales % ratio levels and vacancy levels.

Shopping Centres should be able to access category sales performances for marketing and valuation purposes at anytime.

A retail sector Website to be created for this purpose.

The costs of collating Shopping Centre sales performance statistics to be borne by the Shopping Centre Industry.

The independent body to be mandated as a non profit centre; the costs of the independent body open for audit purposes making sure that costs to the Shopping Centre Industry are kept to the minimum.

Shopping Centre Groups such as Westfield already collate and provide excellent Sales Reports and Sales per Meter reporting by Category – a software pattern easily adapted by the ABS.

Sales input maintenance patterned on BAS statement standard reminder and enforcement emails – low cost of maintenance.

·         The RETAiL Alert Group recommends dialogue be commenced between The RETAiL Alert Group, the ABS, The SCCA and retail sector associations to determine the appropriate category chart of accounts supporting a category retail sales database.
 

·         The Australian retail sector, governments need accurate retail sales statistics – category sales and sales per meter provided by Shopping Centres already collecting the data is the right cost effective vehicle.
 

·         Retailing is a key element of the Australian economy – accurate and truthful reporting of retail sales data essential providing timely and effective sales data for instrumentalities such as the RBA.
 

·         The objective – a fully informed Australian retail sector market, data provided by the ABS – with little cost.

To provide support to this proposition email ABS Sales per Category reporting.

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
 
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