Submission to the Department Mines, Industry Regulation and Safety - Consumer Protection Western Australia in respect of proposed extended trading ...
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Submission to the Department Mines, Industry
Regulation and Safety – Consumer Protection
Western Australia
in respect of proposed extended trading hours
during
the Christmas/New Year period 2021/2022 and
Public Holidays
20thAugust 2021
National Support Centre - Suite 5, 1 Milton Parade, Malvern VIC 3144
P 1800 888 479 | F 03 9824 4022 | www.mgatma.com.au | ABN 44 004 063 263 1
© MGA TMA 2018Introduction
The Department of Commerce has sought public views on proposals for changing trading
hours which the Minister may consider, in respect of the forthcoming Christmas/New Year
retail trading period 2021/ 2022 for the Perth Metropolitan Area.
Master Grocers Australia trading as MGA Independent Retailers and Timber and
Hardware Merchants Australia, (MGA/TMA) is an industry association that represents the
interests of our members who consist of family and privately owned retail businesses in
Western Australia. MGA/TMA welcomes the opportunity to make this submission on
behalf of our members in Western Australia in respect of any changes to trading hours.
It has been proposed that general retail trading hours in the Perth Metropolitan Area be
extended between 7.00am to 9.00pm on weekdays between 16th December 2021 and 24th
December 2021 and 8.00am to 9.00pm on Sundays and Public holidays between these
dates. There are also proposed extended trading hours between, 8.00am and 6.00pm on
Boxing Day 26th December 2021 and Monday 28th December 2021 and on New Year’s
Day, 1st January 2022. Closures would be on Christmas Day 2021.
MGA Independent Retailers and MGA Timber Merchants Australia (MGA TMA)
MGA TMA is a national employer industry association representing the interests of family
and private businesses throughout Australia.
Our focus “partnering for success”, is driven by a dedicated MGA /TMA team of
professionals which is always prepared to assist and support our members with their
business requirements “back of house needs”, including employment legal advice,
workplace relations and human resources support, training solutions for management and
staff, and advocacy that affects all aspects of our members’ businesses, which will assist
them to operate both efficiently and sustainably.
MGA TMA represents independent grocery, liquor, and other retail outlets including
timber and hardware, in all States and Territories of Australia. These businesses range in
size from small, to medium and large, and make a significant contribution to the retail
industry, accounting for approximately $16 billion in retail sales.
There are 2,700 branded independent grocery stores, trading under brand names such as:
Drakes, Farmer Jacks, FoodWorks, Foodland, Friendly Grocers, IGA, IGA Xpress, Supa
IGA and SPAR, with a further approximately 1,300 independent supermarkets trading
under their own local brand names.
National Support Centre - Suite 5, 1 Milton Parade, Malvern VIC 3144
P 1800 888 479 | F 03 9824 4022 | www.mgatma.com.au | ABN 44 004 063 263 2
© MGA TMA 2018In addition, there are numerous independent liquor stores operating throughout Australia
and trading under names such as: Cellarbrations, The Bottle O, Duncans, and Local
Liquor, which are either single or multi-store owners.
Our members also own independent hardware stores trade under brand names including
Mitre 10, Home Timber and Hardware, Thrifty Link and True Value Hardware.
These stores and businesses collectively employ more than 120,000 staff.
In Western Australia MGA TMA’s members trade under a variety of different brand
names including, Farmer Jacks, FoodWorks, Supa IGA, IGA, IGA Xpress, Eziway,
Cellarbrations, The Bottle O and Mitre 10 Hardware and Home Timber and Hardware.
In WA, MGA TMA has 491 members, employing over 20,000 staff with a sales turnover
of $2.8B per annum.
The independent grocery sector makes a significant contribution to the WA economy and
the communities in which they trade.
MGA’s WA Director is Ross Anile, who together with his family owns and operates the
IGA Fresh local community supermarket in Roleystone.
The Western Australian Department of Commerce is currently reviewing the Christmas
trading extensions for the Perth metropolitan area and any extension of trading hours is a
significant issue for many of our members as it makes it even more difficult for
independent, community-based businesses to compete.
The position of MGA in respect of increased trading hours.
MGA opposes any extension of trading hours in the metropolitan area beyond the times
currently specified.
Current trading hours for general retail shops in the Perth Metropolitan Area:
Monday to Friday 8am to 9pm
Saturday 8am to 5pm
Sunday and Public 11am to 5pm
Holidays
Christmas Day, Good Closed
Friday, and ANZAC
Day
It is noted that there are exceptions to the above trading hours laws which provide that
National Support Centre - Suite 5, 1 Milton Parade, Malvern VIC 3144
P 1800 888 479 | F 03 9824 4022 | www.mgatma.com.au | ABN 44 004 063 263 3
© MGA TMA 2018• Small retail shops can trade 24 hours a day, every day of the year.
• Small retail shops are shops owned by up to six people who operate no more
than four retail shops, in which up to 25 people work at any one time (people
employed as apprentices are not included in maximum permitted staffing
numbers).
• To be classified as a small retail shop, the store must satisfy the above
conditions and apply to the WA government for a certificate confirming the
status.
It is noted that the Minister has previously granted extensions to trading hours during the
festive season as follows:
Wednesday 16 December 2020 7am to 9pm
Thursday 17 December 2020 7am to 9pm
Friday 18 December 2020 7am to 9pm
Saturday 19 December 2020 8am to 6pm
Sunday 20 December 2020 8am to 6pm
Monday 21 December 2020 7am to 9pm
Tuesday 22 December 2020 7am to 9pm
Wednesday 23 December 2020 7am to 9pm
Thursday 24 December 2020 7am to 9pm
Friday 25 December 2020 Closed (Christmas Day)
Saturday 26 December 2020 8am to 6pm (Boxing Day)
Sunday 27 December 2020 8am to 6pm
Monday 28 December 2020 8am to 6pm (Boxing Day Public Holiday)
Tuesday 29 December 2020 8am to 9pm (Normal Trading)
Wednesday 30 December 2020 8am to 9pm (Normal Trading)
Thursday 31 December 2020 8am to 9pm (Normal Trading)
Friday 1 January 2021 8am to 6pm (New Year’s Day)
Tuesday 26 January 2021 8am to 6pm (Australia Day public holiday)
National Support Centre - Suite 5, 1 Milton Parade, Malvern VIC 3144
P 1800 888 479 | F 03 9824 4022 | www.mgatma.com.au | ABN 44 004 063 263 4
© MGA TMA 2018Reasons why MGA/TMA opposes any extensions to trading hours.
MGA has previously opposed the extension of trading hours on behalf of our members and
continues to oppose any further relaxation of trading hours due to the serious
consequences that will impact on family and privately owned supermarkets and retail
businesses. Small businesses rely on the few remaining trading hours in which larger
businesses are unable to trade, for their sustainability.
Members of MGA are an integral part of the community hubs in which they trade.
Together, with many other small family-owned food growers, producers and
manufacturers, they are a part of a vital commercial ecosystem. Our Members make it
possible for small local businesses to start-up, acquire distribution, and make their local
products available to our WA customers. If trading hours are relaxed over the festive
period in favour of the Chains, then this valuable and robust ecosystem of local WA
businesses risks becoming unviable.
Over recent years there have been amendments to trading hours legislation in Western
Australia, which have provided businesses with greater trading opportunities.
These extensions have impacted the ability of smaller businesses to operate their
businesses successfully and profitably. This has enabled larger supermarkets, such as
Coles and Woolworths, to grow their market power and such growth seriously damages
the viability of MGA/TMA members to remain in business.
An increase in trading hours does not necessarily mean more jobs. Stores such as Coles
and Woolworths simply spread any additional hours of work availability across their
current staff and make greater use of automated self- serve checkouts.
Furthermore, there is no more money available in the community than already exists and
extending trading hours simply means spreading the available money that consumers have
to spend, over a longer period of shopping time. Thus, there is no economic benefit for the
State. Larger businesses, such as Coles and Woolworths argue that the extension of trading
hours provides greater “customer convenience.” However, it simply removes a few
additional hours of trade from smaller retailers currently have and takes away the
livelihood of small businesses which will eventually force them from the market.
The proposed extensions over the Christmas /New Year period includes an extension of
trading hours on certain public holidays. This is far beyond the current allowable trading
hours in the Perth Metropolitan area.
National Support Centre - Suite 5, 1 Milton Parade, Malvern VIC 3144
P 1800 888 479 | F 03 9824 4022 | www.mgatma.com.au | ABN 44 004 063 263 5
© MGA TMA 2018If the proposed Christmas/New Year trading extensions are implemented, there will be an
expectation that small businesses will be open on public holidays in line with other
businesses, or they will face pressure from their landlord, or lose customers. However due
to the exorbitant penalty rates, small retail businesses must pay on public holidays (in
some cases up to 250%), and small businesses do not make a profit on these days, as they
are paying extremely high wages to compensate staff for working on these days. Big
businesses have their own enterprise agreements and automated self -serve checkouts
which reduce their cost of trading on public holidays. In any event their costs can be easily
absorbed which is not the case for smaller family and privately owned retailers and
businesses.
If the extension of trading hours is continually introduced, smaller businesses will
gradually disappear through a process of attrition and there will be no competition.
This will result in the larger stores controlling prices and it will distort the ability of
consumers to make choices and destroy any semblance of competition.
There is ample evidence of the detrimental effect that the extension of trading hours has
had in other States.
MGA members face a highly competitive environment in other States where the
experiences are no different to those in Western Australia.
The opportunity to trade when the Chains are closed is important to our members with
most stores endeavouring to open before their nearest chain store opens and remain open
until after their nearest chain store has closed. Any opportunity to remain open allows
small businesses to remain competitive and make up for the lost sales during the hours
when the Chains are open. If changes to trading hours are introduced the difficulties
currently faced by the independent small businesses will worsen.
If the WA Government is serious about helping family and private small businesses to
survive and maintain a healthy economy, it must not allow the proposed amendments to
trading hours during the Christmas/New Year period to progress. It is not difficult to show
how many small businesses have fallen by the wayside due to the extension of trading
hours.
The WA Government should look beyond its borders for evidence of how trading hours’
extensions could economically affect Western Australian businesses. It should look
interstate at the number of shops that have closed and how their owners have gone into
liquidation due to the expansion of the power of larger businesses. Large businesses will
be the main beneficiaries of extended trading hours, not Western Australia. The
National Support Centre - Suite 5, 1 Milton Parade, Malvern VIC 3144
P 1800 888 479 | F 03 9824 4022 | www.mgatma.com.au | ABN 44 004 063 263 6
© MGA TMA 2018Government should also consider the fact that a great deal of the wealth derived from
extended trading hours will find its way interstate.
MGA strongly believes that further change would seriously damage the continued viability
of the businesses of independent retailers and urges the Minister to resist any changes to
trading hours in Western Australia.
National Support Centre - Suite 5, 1 Milton Parade, Malvern VIC 3144
P 1800 888 479 | F 03 9824 4022 | www.mgatma.com.au | ABN 44 004 063 263 7
© MGA TMA 2018MGA thanks the Minister and the Department of Commerce for the opportunity to make
this submission on behalf of our WA members.
Jos de Bruin
Master Grocers Australia – MGA Independent Retailers/Timber Merchants Australia
20th August 2021
National Support Centre - Suite 5, 1 Milton Parade, Malvern VIC 3144
P 1800 888 479 | F 03 9824 4022 | www.mgatma.com.au | ABN 44 004 063 263 8
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