Gerry Harvey, executive chairman of the household goods retailer Harvey Norman, has upset the Australian Retailers Association. The industry body has slammed the franchisor for laughing off the real concerns of smaller retailers across the country at a panel discussion last week.

ARA executive director Russell Zimmerman said Any retail giant that has the hide to laugh off the very genuine concerns of smaller retailers is completely out-of-touch. 

While Mr Harvey may not be feeling the impact of current retail trading conditions, smaller retailers are spending every waking hour trying to get customers in the door and hold onto their staff.

The June ARA Australian Retailers Index – due to be released this week – will show confidence levels for small retailers are the lowest of any small business sector, he said.

In April 2010 total retail sales were only up 1.8 percent compared to the same time last year. This is appalling growth and well below the current rate of inflation. Sales for particular retail categories, including clothing, footwear and personal accessories, are actually in decline from last year.

Growth year on year from April 2009 to April 2010 in household goods retailing is 0.9 percent; food retailing is 2.9 percent; cafes, restaurants and take-aways are stronger at 9.4 percent.  

I might take this opportunity to remind Mr Harvey he represents only one retail brand, and lucky for him he’s doing quite well, but unfortunately he isn’t representative of the broader retail sector, Zimmerman said.