Retailers are continuing to face an uphill battle against the cost of doing business with the third interest rate increase in three months announced today by the Reserve Bank.
National Retail Association Chief Executive Dominique Lamb said the challenges of doing business have never been more difficult.
“Retailers are well are well and truly in the midst of inflationary pressures and the latest interest rate hike is a blow for small businesses in particular.
“These businesses are already struggling to keep their heads above water with supply chain issues, staff shortages, the cost of energy, and now further interest rate hikes to loans, which will also deter shoppers even more.”
Ms Lamb said despite national turnover figures being strong the past few months, the culmination of inflationary pressures will come to a head in the remainder of 2022.
“High sales volumes can be attributed to the higher consumer prices we’re seeing across the country, but the reality is the average household budget is tightening which places future consumer spending at risk.”
“This puts significant pressure on the viability of many businesses, and unfortunately their situation will get worse before it gets better, if ever.”
The National Retail Association is the voice of modern retail, serving businesses owners for close to 100 years. It represents more than 60,000 shop fronts nationally.