The incoming chief executive of the soon-to-be-formed Australian Retail Council (ARC), Chris Rodwell, has outlined key areas requiring urgent attention from the re-elected Labor government. Among the priorities identified are increasing productivity, addressing rising operational costs, and tackling the escalation in retail crime. These issues are placing considerable pressure on Australia’s retail sector, which includes many jewellery retailers nationwide.
Retail’s Economic Significance and Cost Pressures
The Australian retail industry is valued at AU$430 billion and employs around one in ten workers, according to Rodwell. This makes the sector a substantial contributor to the national economy, accounting for nearly 20 percent of the country’s gross domestic product. “Retail performance impacts every Australian and it’s clear that we need strong economic leadership to support the sector through a challenging climate,” Rodwell said.
He highlighted that retail businesses, including jewellers, have been contending with cumulative cost increases in areas such as rent, wages, energy, insurance, and logistics. These pressures are being compounded by ongoing cost-of-living challenges affecting consumer spending. “Retailers are particularly keen for the government to take measures to lift lagging productivity and to see the cost-of-living relief measures flow through to the checkout,” he added.
Tariffs and International Trade Pressures
Rodwell also noted the effect of international trade tensions, particularly the rise in United States tariffs on Chinese goods to 145 per cent. For Australian retailers reliant on imports, including those in the jewellery sector, this may lead to increased costs and supply chain disruption. “It will be tough for them to stare down the pressure to raise prices in the coming months,” he said. “While we recognise the government has limited options to deal with this volatility in its negotiations with the United States, it does have the capacity to offset impacts by redoubling efforts to reduce the red tape and cost burden of Australian businesses.” Rodwell said the merger of the Australian Retailers Association and the National Retail Association into the ARC would support more coordinated engagement with the government.
Retail Crime Statistics Prompt Call for Action
A rise in retail crime has added another layer of pressure. According to data from retail crime platform Auror, there was a 66 per cent year-on-year increase in incidents involving weapons in 2024. The report also found a 30 per cent increase in violent or serious incidents and a 39 per cent increase in threatening events nationwide. In Victoria, these numbers were higher still, with a 38 per cent rise in violent incidents and a 52 per cent increase in threatening events. Rodwell stressed the need for coordinated national action: “The human and economic cost of this crime is unacceptable. We need a dedicated national retail crime strategy and consistent, specific protections for retail workers.”
Relevance to Jewellers
Given the high value of inventory and dependence on global supply chains, jewellers are directly affected by rising costs, security concerns, and trade-related pricing pressures. Incidents of retail crime, particularly those involving weapons, present elevated risks for stores handling high-value goods. The call for reduced regulatory burdens and targeted government intervention reflects ongoing concerns within the jewellery trade about maintaining commercial viability under tightening margins.
Government Engagement and Industry Outlook
Rodwell has urged the government to act promptly, stating, “It is critical we seize the moment in this term of government as our nation can’t afford for the agenda to slip into the 2030s. The state of our economy and national finances reflect that it is already overdue.” The ARC is expected to engage with policymakers on productivity and retail safety issues. Developments in these areas may have direct implications for jewellery businesses in the near term.
