Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

Supply chain costs affecting Australian tech prices: ARA

Increases in retail staff wages may not be sustainable for some brick and mortar retailers warns Australian Retailers Association executive director

The cost of transporting technology goods across Australia and artificially inflated rent for retail space is forcing Australian bricks and mortar retailers to pass on these costs to consumers, according to the Australian Retailers Association (ARA).

ARA executive director, Russell Zimmerman, told an inquiry hearing on Monday of the House of Representatives Standing Committee on Infrastructure and Communication that due to the size of Australia, the costs associated with transporting retail goods from one point in the country to another are high.

“It is also well documented that [retail] rents in Australia are artificially set higher against places like the US and Europe,” he said.

In addition, Zimmerman said that brick and mortar retailers in Australia will soon be required to pay retail staff time and a half for working on Saturday and double time for staff who work on Sunday. This is due to the introduction of the Modern Awards scheme pay rates in January 2010 which will be fully rolled out by 1 July 2014.

“You cannot sustain those kinds of rates in Australia in the long term because people will naturally go to buying [cheaper] products overseas,” he said.

For example, Zimmerman said consumers could travel to somewhere in Asia and import the Sony camera they want for a cheaper price.

“The downside to parallel importation is that you don’t get Australian retailer and consumer protections,” he said.

Follow Hamish Barwick on Twitter: @HamishBarwick

Follow CIO Australia on Twitter and Like us on Facebook… Twitter: @CIO_Australia, Facebook: CIO Australia, or take part in the CIO conversation on LinkedIn: CIO Australia

Recommended

  1. Where is IT outsourcing heading in 2013?

  2. Saving Google Maps destinations for easy navigation

  3. Tapping into social experience: Tourism Australia

    CMO

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: Australian Retailers Association, Facebook, Sony
References show all
Comments are now closed.
Related Whitepapers
Latest Stories
Community Comments
Latest Blog Posts
Whitepapers
  • BYOD and Beyond - Implementing a Unified Access Solution
    The rise of BYOD programs is the single most radical shift in the economics of client computing for business since PCs invaded the workplace. Whether you are contemplating the creation of a BYOD program or currently trying to establish one, this fact cannot be overstated. Find out how to overcome these challenges.
    Learn more »
  • IDC: Delivering Customer Value with Enterprise Flash Deployments
    When it comes to flash, “one size does not fit all.” IDC examines recent flash trends in enterprise storage deployments. This includes: highlighting how SSDs are filling in gaps of existing storage systems when coupled with intelligent archiving and automated tiering, the pros and cons of different SSD approaches, and tips to overcome concerns of reliability, manageability and scalability.
    Learn more »
  • Vodafone Ireland Implements World-Class Service Excellence with HP BSM
    Shane Gaffney, head of IT operations explain how HP Business Service Manager solutions have helped Vodafone to transform from a reactive to a proactive IT Operations function, and to align their priorities to match the business and drive business value, delivering 300% ROI in one year. Download today.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Recent comments