Retail Association calls on Government to provide $5k loans to bricks-and-mortar retailers

With the rolling back of JobKeeper looming, many retailers which are
unable to make their business function online are at risk of collapse according
towards the National Retail Association (NRA).

And, while the industry body supports government loans as high as $6000 to help retailers get online, not every businesses can easily transition to a digital environment.

To support these businesses, the NRA is calling on the authorities to provide $5000 loans to smaller businesses that rely on bricks-and-mortar shopping.

“E-commerce is going to be essential for many businesses going forward, although not all businesses can go online,” NRA chief executive Dominique Lamb said.

“What many retailers desperately need are loans so they can renew their public facing branding to draw in customers and help keep them afloat during this time period of instability.”

According
to the NRA, retail comprised about 20 percent of all businesses that closed
their doors between June 2021 and March 2021, based on ABS statistics.

And,
as Deloitte Access Economics pointed out in a report released today, things
aren't about to get easier for retail in 2021.

“We're concerned for stores that need a customer to physically inspect items before investing in a purchase – like furniture, electronics and homewares stores – it's much harder for these retailers to go digital due to the purchasing processes,” Lamb said.

These
businesses must rely on different methods to bring customers instore and
buying, according to the NRA, such as utilising certain types of light to flag
offers.

The
NRA said Adelaide-based cell phone company Pop Phones used cold white light
to market monthly promotions and saw a ten per cent increase in sales of
these things, but that physical marketing costs can quickly balloon and that
Government assistance could go a long way in helping close the gap.

The JobKeeper support is through due to be wrapped up by the end of March, leaving many industries concerned about the approaching financial “cliff” and what it'll mean for them.

The
Government has stated on multiple occasions it has no intention of extending
JobKeeper again, and that it was always intended to be a brief relief
measure.

Federal
treasurer Josh Frydenberg said captured that economic recovery would
need to move beyond relying solely on JobKeeper – with personal income tax cuts
and the JobMaker hiring credits set to complete the heavy lifting moving forward.

This story first appeared on our sister publication Inside Retail