Despite a 4.7% increase in sales JB Hi Fi is still suffering from margin pressure due in part to the growth of online operators and rising costs which under a Bill Shorten Labor Government

could get worse. The big question now is whether both State and Federal Governments need to review the pressure that retailers are facing in Australia. While JB Hi Fi has delivered an

excellent result with online sales growing 21% the same cannot be said for David Jones, Roger David who was placed into administration late last year or the likes of Myer or the thousands of

smaller retailers who facing cost pressures due in part to overseas online operators being able to employ cheap labour and operate in a Country where the cost of doing business is cheap.

profitability. Murray whose Company is set to report today is being backed in his push by Chemist Warehouse founder Jack Gance, both are successful retail CEO’s. Currently the Australian

Retailers Association, is in early talks to merge with the National Retail Association to form a stronger voice for the industry. The move comes as online operator Amazon becomes a major

threat to the viability of local retailers as they crank up their presence in Australia. Recently Amazon re-opened up their US web site to Australian consumers a move that now allows them to

ship goods into Australia avoiding high local labour and retail costs.  This is creating margin pressure for local retailers who are being forced to match prices while absorbing

significantly higher operating costs. One of the major concerns is that a Shorten led Labor government could bring back penalty rates if it wins power later this year and while calling for

higher pay for employees takes no action against online operators who are processing orders from overseas. Retailers also want longer and better trading hours something which the retail

unions in Australia are against. In the USA retailers stay open till 10.00pm with families going to shopping malls after work to eat and then shop.  Often these malls don’t open till 12

noon. Retailers are also concerned about the cost of doing business in Australia while also trying to maintain a level playing field against offshore players. ChannelNews understands that

external consultants are currently working to put together a framework for an ARA and NRA merger. The merger proposal is being advised by Mark Gell, co-founder and partner at Reputation

Edge, and the man who helped to amalgamate the Institute of Chartered Accountants in Australia and New Zealand. The retailers involved are keen to ensure the merger is seen to be a win for

smaller retailers and not just the biggest chains. It is hoped the merger will give small and medium-sized retail enterprises a much stronger voice in Canberra as well as in the states and

territories. A merger would also bring together tens of thousands of shop- owners, retailers and employers in what the Australian said earlier this year can be a fractious sector. About Post

Author David Richards David Richards has been writing about technology for more than 30 years. A former Fleet Street journalist, he wrote the Award Winning Series on the Federated Ships

Painters + Dockers Union for the Bulletin that led to a Royal Commission. He is also a Logie Winner for Outstanding Contribution To TV Journalism with a story called The Werribee Affair. In

1997, he built the largest Australian technology media company and prior to that the third largest PR company that became the foundation company for Ogilvy PR. Today he writes about

technology and the impact on both business and consumers.