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The fourth edition of the AFGC CHEP Retail Index forecasts continued subdued growth for Australia’s retail sector in the March quarter, which is traditionally one of the slowest trading periods of the year.
The Index forecasts retail trade figures ahead of the Australian Bureau of Statistics using industry data, which indicates retail trade in December increased by a better than expected, 3.1 per cent year on year.
Year on year, Australian retail experienced a slight improvement in December but this was from a particularly low base in 2011, Australian Food and Grocery Council (AFGC) Chief Executive Kate Carnell said.
“During this highly challenging and subdued retailing environment, Australian retailers and manufacturers are focusing on planning and operational execution through the supply chain by removing inefficiencies and delays,” Ms Carnell said.
“Management of the supply chain has become particularly important in light of recent operational and sales trends such as an increase in the percentage of sales on promotion and value conscious customers creating downward pressure on prices generally. With manufacturing and farming input costs increasing, margins have decreased putting pressure on inventory holdings.
“Nevertheless, retailers and suppliers are working together to achieve mutually beneficial outcomes through understanding the pressure points and putting in place alternative arrangements that reduce costs and ensure product supply.
“By optimising the efficiency of the entire supply chain, through improved processes and practices, retailers, manufacturers and consumers all win.”
President of CHEP Australia & New Zealand Phillip Austin said while the AFGC CHEP Retail Index results projected continued year on year growth in the quarter ending March, retail trade was not out of the woods yet.
“The analytics used to generate the AFGC CHEP Retail Index are based on supply chain activity. The devastating and tragic floods in Queensland in January last year resulted in ‘one off’ changes in supply chain activity that will impact year on year comparisons during the early months of 2012.”
The AFGC CHEP Retail Index is generated by Deloitte using CHEP Australia transactional data based on pallet movements. The methodology has been tested by Deloitte over the past two years and is a lead indicator of ABS Retail Trade data.
The AFGC CHEP Retail Index is published quarterly, with the next announcement due in late April. To read the Index and access more background visit the AFGC website or www.chep.com/index.
Download the index below:
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More information: Brad Watts AFGC Media Manager (02) 6270 9021 or 0437 379 818
Connie Soldatos CHEP Australia Media Contact 0414 288 200.
About AFGC
The Australian Food and Grocery Council (AFGC) is Australia’s peak national industry association, representing the $108 billion food, beverage and grocery manufacturing industry. As Australia’s largest manufacturing sector, the food and grocery manufacturing industry is a vital contributor to the wealth and health of our nation. The industry’s products are in more than 24 million meals, consumed by 22 million Australians every day, every week and every year. AFGC’s aim is for the Australian food, beverage and grocery manufacturing industry to be world-class, sustainable, socially-responsible and competing profitably domestically and overseas. AFGC represents one of the few manufacturing sectors that continues to grow and has significant potential for even further growth into the future. For more information, visit www.afgc.org.au
About CHEP
CHEP is a global leader in managed, returnable and reusable packaging solutions, serving many of the world's largest companies in sectors such as consumer goods, fresh produce, beverage and automotive. CHEP’s service is environmentally sustainable and increases efficiency for customers while reducing operating risk and product damage. CHEP’s 7,500-plus employees and 300 million pallets and containers offer unparalleled coverage and exceptional value, supporting more than 500,000 customer touch-points in 49 countries. Our customer portfolio includes global companies and brands such as Procter & Gamble, Sysco, Kellogg's, Kraft, Nestlé, Ford and GM. CHEP is part of Brambles Limited. For more information, visit www.chep.com
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia’s leading professional services firms. Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 5,000 people across the country. For more information, please visit our web site at www.deloitte.com.au
The information provided in the AFGC/CHEP Index ("the Index") will be provided collaboratively by CHEP Australia ABN 11 117 266 323, Australian Food and Grocery Council ABN 23 068 732 883 and Deloitte Touche Tohmatsu ABN 74 490 121 060 (“the Producers”). The information provided in the Index will be current as at the stated release date and will be provided without taking account of any person's personal objectives, financial situation or needs. Because of this readers should, before acting on any information, consider its appropriateness, having regard to their objectives, financial situation or needs. The information in any report may contain material provided directly or indirectly by third parties. The Producers accept no responsibility for the accuracy or completeness of any such material. Except where contrary to law, the Producers exclude all liability in negligence or otherwise for the information contained with any report. The information in each report will be subject to change without notice and the Producers will be under no obligation to update the information or correct any inaccuracy which may become apparent at a later date or to produce future releases of any report. The forecasts given in reports will be predictive in character and therefore inherently uncertain. Whilst reasonable efforts will be made to ensure that the assumptions and facts on which the forecasts are based are reasonable and correct, the forecasts may be affected by incorrect assumptions, incorrect facts or by known or unknown risks and uncertainties. The ultimate outcomes may differ from these forecasts.
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