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Shop Trading Hours Charter 2018 Industry Focus Paper Charter 2018 02 Introduction 04 Evidence from Recent Government Reviews 05 Consumer Preferences and Online Retail 07 Shop Trading Impact on Youth Employment Hours 08 Other States and Overseas Experience 010 Impact on Tourism 011 Impact on Small Business 012 Case Studies 014 South Australia Now 015 Appendix Industry Focus Paper Business SA South Australia: Open for Business Shop Trading Hours Charter 2018 02 Introduction Business SA works to ensure the broader 5pm on weekends and before 11am on South Australian economic environment Sundays. Furthermore, only the Adelaide is conducive to successful business in an CBD is exempt from public holiday trading increasingly-globalised economy, requiring restrictions, meaning suburban shopping local businesses to be highly cost competitive. centres remain closed. We have long argued that shop trading hours deregulation, while not a cure-all, is a necessary South Australia has some of the most step toward making South Australia the complex trading hours regulations in vibrant state it should be. Australia. For example, certain shops can sell furniture on public holidays, but they are Business SA calls on the State Government not able to sell electrical white goods. South to join the forward-looking states and Australia now sits with Western Australia as territories of our nation by opening South the least flexible state, half an hour and at Australia in reality, not just on the state least a decade behind the rest of Australia. brand; but by providing consumers, visitors, traders and retail employees with the benefit Business SA represents businesses impacted of choice through the implementation of directly and indirectly by shop trading hours 1 a competitive retail environment, through restrictions. In a 2017 survey, 82.35% of our deregulating of trading hours. members said the current shop trading hours Shop trading hours restrictions created a negative perception of deregulation is a necessary step Business SA recently commissioned the world South Australia as a place to visit, and 81.7% toward making South leading University of South Australia ‘Institute believed deregulation of shop trading hours Australia the vibrant for Choice’ to undertake a comprehensive would have a positive impact on the South state it should be. survey of consumer preferences for shop Australian economy. Members cited reasons trading hours. The survey found 74% supported such as: changes to existing restrictions with 62% wanting to shop at a full sized supermarket “People would have greater opportunity to work after 5pm on weekends, 68% wanting to shop and generate an income.” before 11am on Sundays and 58% wanting “Deregulation would create a more positive to shop outside the CBD on a public holiday. perception with visitors to the state.” Regulation of retail trading hours varies “Retail would have a better opportunity to across Australia. The Australian Capital contribute toward city life and vibrancy as it Territory, Northern Territory, Victoria, does in Melbourne and Sydney.” Tasmania and New South Wales have almost completely deregulated shop “Deregulation would allow retailers to be more trading hours while Queensland has made effective in servicing their customers and give significant changes by reducing regulation people the ability shop at any time that works and restrictions (refer Appendix 1). The for them and the business owner.” vast majority of South Australia’s regions, including all the major town centres, have long been deregulated but greater Adelaide remains subject to a range of shop trading hour restrictions which, for example, limit full-size supermarkets from opening after 1 Business SA, ‘Survey of Business Expectations September Quarter’, 2017. Industry Focus Paper Business SA South Australia: Open for Business Shop Trading Hours Charter 2018 “Only those that believe they can make it work The message is clear, to create a vibrant 03 would open for customers convenience. Wages, economic environment the South Australian penalty rates are something the owners will have Government must amend the Shop Trading to consider. If they can turn a profit, and employees Hours Act 1977 (the Act). earning more, [it] must be a good thing.” Ultimately, trading hours restrictions “Let the owners determine what their market throughout the state should be deregulated, needs are, let the employees determine not including Good Friday, Christmas when they want to work, and let the shoppers Day and ANZAC day restrictions, which determine when they want to buy things. The should continue to apply in line with other natural market forces will settle the shopping deregulated states (refer Appendix 1). hours on what is right for that business or area, and everyone will be happier. This whole Deregulation would open up trading hours regulation by people that don’t own businesses to enable retailers to respond to trading (our government) leads to frustrations.” opportunities as they arise; consumers to shop when convenient; and tourists to “Help with tourists in CBD who think they have experience a lively destination and also turned their clocks back 20 years as they walk provide simplification for business by among closed shops in the mall. Freedom of removing an Act which is illogical, complex businesses to better meet customer needs.” and difficult to understand by both traders and visitors alike. “Residents and visitors alike will spend more if they can shop when it is convenient for them. While total deregulation would be the The argument (against deregulating shop optimum method of reaching this goal, Deregulation of shop trading hours) about consumers having a fixed Business SA argues the minimum trading hours would amount to spend in shops each week, month amendment to the Shop Trading Hours Act enable retailers to or year and thus trading hours don’t affect total 1977 should be to reduce trading hours respond to trading spend is not valid and is in fact plain ridiculous. restrictions throughout the state by: opportunities as they Flow-ons include productivity increases across arise; consumers • removing public holiday restrictions in all to shop when the economy from people maximising and convenient; and better balancing work and both discretionary areas, other than Good Friday, Christmas tourists to experience and necessary shopping activities, along with Day and ANZAC day restrictions, which a lively destination. wages/employment impacts in the retail sector.” should continue to apply; “People are very busy with work and life so do • extend trading hours on Saturday and not have time in the regulated hours to shop.” Sunday to reflect those on weekdays by extending closing times from 5pm to 9pm “Regional visitors to Adelaide want to shop on on both Saturday and Sunday; and weekends and long weekends.” • remove Sunday morning restrictions “Deregulation opens up the opportunity for to opening hours. the public to engage in shopping and purchases whenever they wish. This may stimulate With online retail sales having grown using shops instead of online shopping that is 90% in the past five years, and the recent increasing, due mostly I believe, to regulated hours.” introduction of Amazon still making its mark, deregulating shop trading hours is critical “It should provide the opportunity for businesses to helping level the playing field for South and employment to grow. It will also provide Australia’s bricks and mortar retailers.2 confidence for customers. At the same time, it is probably linked to a long hard look at penalty rates which are appalling for small businesses (unless they are family run).” 2 National Australian Bank, ‘NAB Online Retail Sales Index Report – In-Depth Report’, January 2013–January 2018. Industry Focus Paper Business SA South Australia: Open for Business Shop Trading Hours Charter 2018 04 Evidence from Recent Government Reviews Business SA is not alone in making this on retailers to remain open when it was recommendation. Many recent reviews, uneconomical to do so. including those listed below regarding competition and productivity policy and Business SA notes the Retail and Commercial legislative simplification, have strongly Leases Act 1995 voids any commercial recommended the urgent need for tenancy agreement provision which requires deregulation of trading hours. a tenant to: • The Productivity Commission’s Economic • open for business outside core trading Structure and Performance of the hours of the shopping complex or standard Australian Retail Industry, 20113 trading hours―core hours cannot exceed 54 per week nor include anytime on a Sunday • The Productivity Commission’s Relative Costs of Doing Business in Australia: • pay for costs of the complex incurred Retail Trade, 20144 outside core trading hours when the tenant’s shop was not open for business • The independent federal Competition or when it’s unlawful to trade. Policy Review, 2015 (Harper Review)5 Accordingly, shops in the Greater Adelaide • The Federal Government’s Response to Shopping District (central business district Many recent the Competition Policy Review 20156 tourist precinct, the Glenelg tourist precinct reviews regarding and the metropolitan area) are not obliged to competition and The Harper Review of 2015 stated that open on a Sunday, even if required by a retail productivity policy, “deregulation of retail trading hours is overdue, and legislative shop lease or other determination. simplification, and that remaining restrictions should be have strongly removed as soon as
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