CEO REPORT
CEO Welcome A warm welcome to all members, industry friends, and industry colleagues to the Autumn 2022 edition of the Independent Retailer Magazine. At the time of writing, we wish to acknowledge all our members, their families, staff members and customers who have been exposed to more substantial and ongoing inclement weather causing catastrophic flooding in Northern and Central New South Wales, Sydney, and Southern Queensland. We wish you all a very quick recovery to some form of normality. Members, please call MGA should you require any “back of house” support and assistance as a consequence of these flooding events. Last month former Treasurer Josh Frydenberg delivered his third Federal Budget. A budget delivering a significant fiscal policy investment, as well as, committing to spending across many facets of the Australian economy, to enable a robust post COVID-19 business recovery. See inside this edition for a summary of the FY 2023 budget. For the third year in a row, COVID-19 continues to dominate our daily lives, whether it be at home or in our businesses. Members continue to experience business challenges at various levels around the country. In Queensland, New South Wales and Victoria, the spread of the Omicron COVID-19 variant is playing havoc, causing chronic worker shortages owing to staff testing COVID-19 positive or identified as a close contact and having to test and isolate for seven days. Western Australia’s border officially opened on 5 March 2022, a great relief for all concerned, particularly those wishing to see family and friends after the border shut for such a long time.
Western Australia and South Australia are experiencing similar challenges to the eastern states twelve months ago, with chronic staff shortages a top challenge. Western Australia is fortunate to have a very high uptake of vaccinations around the state, allowing for a more planned approach to opening out the Western Australia economy. Illicit tobacco continues to be a very serious issue for members. MGA estimates that illicit and illegal tobacco is causing loss to members of $300m per annum in legitimate tobacco sales. The knock-on effect is the loss of very important cash flow and revenue, not just with loss of legitimate tobacco sales, but also loss of “add on” sales that tobacco customers purchase while in the store. This is having a significant and serious impact on staff member reductions, owners working longer hours in the business, and no funds available to invest back into their businesses to remain competitive against the major chains. We wish to officially farewell ACCC Chairman, Rod Sims, after eleven years at the helm, and welcome Gina Cass-Gottlieb, the ACCC’s inaugural female Chairperson to the role. Rod Sims’s hard work and passion to protect the consumer and small businesses from unfair and unconscionable practices by large businesses has left a significant legacy. MGA looks forward to working with the new Chairperson, Gina CassGottleib, toward fostering fair and robust competition and creating a diversity of choice for consumers in
the food, grocery, beverage, hardware, and timber industry sectors. After two years of COVID-19 lockdowns and meeting face-to-face only twice during that time, MGA’s Board of Directors was finally able to meet in Adelaide from 23 to 25 March 2022. Our Board had the good fortune to visit some of Adelaide’s most iconic and brilliant food and grocery stores, as well as conducting the Board meeting at Foodland House, which has now located itself in the heart of bustling Adelaide. Stores visited included Romeo’s Rundle Mall, City East IGA, Drakes Supermarket Eyre, Chapley Group’s Saints Foodland in Salisbury, Drakes Supermarket Fulham Gardens, and IGA Henley Beach. As most members will know, retail standards in South Australia are very high and are aspirational to us all around Australia. MGA congratulates our South Australian members for their incredible presentation and extensive offerings which sets them apart from the chain stores and the German retailer. Until next edition, we wish all flood effected members a very fast recovery from all the devastating weather events and a good trading period leading into the winter months. Best wishes Jos de Bruin Chief Executive Officer
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