Boxing Day Trading

The authorization of trading on public holidays has often been a bone of contention. This is because different stakeholders have different perspectives regarding the matter. The main focal point of this paper will be the Australian retail industry and the recent relaxation on the restriction that previously existed against Boxing Day trading. One of the major stakeholders in this regard is the unions whose interests are vested in the matter. The stand of Unions and associations is divided. Those that support the relaxation of the restrictions attribute this to the increased demand for various products during the time frame in question (Moody, 2015, p. 1). This is to say that this is a time frame that would be substantially useful to retailers in terms of income generation. However, those that are in opposition on the other hand cite the fact that small scale retailers already have their communities’ needs understood and meet them efficiently. Therefore, in their opinion, there is no need for large scale retailers to open on Boxing Day.   

As regards the retailers themselves, their main cause for concern appears to be the creation of competition between large and small scale retailing as two completely different entities (Harris, 2015, p. 1).  On the other hand, the shoppers are of the opinion that they ought to be allowed an opportunity to shop whenever they please and in whatever manner they intend to do so. This is because the holiday season comes with various flexibility rates for various people. Those that may not be able to shop before Christmas due to rigid schedules would wish to do so on Christmas and/or Boxing Day.  In truth, the whole issue is one that amasses great relevance to the economic state of Australia as a whole. In the year 2005 statistics have it that that the retail industry enjoyed a whopping $2.1 billion in sales on Boxing Day alone. In that same tear, it was predicted that the figure would stand at approximately $21 billion in the time frame spanning December 26 and January 15 (2006) (Hatch, 2015, p. 1).  Notably though, at the time, although online shopping on boxing day was fast gaining ground, consumers still preferred to engage in physical sales. There is likelihood that in the event that today’s consumer behavior was statistically postulated, online shopping would have grown much more influential. This is because of the heightened growth in terms of technological advancement and computer literacy.

Large scale Retailers appear to embody uniformity in thinking on the matter at hand. This is because firstly, Boxing Day qualifies as an important factor in the retail calendar (Harris, 2015, p. 1). This is primarily on an income basis. As previously postulated the retail industry usually generates a significant amount of cash flow on Boxing Day and the festive period in general. For this reason, it would cost large scale retail a huge amount of money as it is the more reputable provider of general household items and personal stuff. In similar regard, large retailers have already based their stand from the favor of their employee bodies.  While most employees (and their families) were concerned that they would be forced to work on Boxing Day against their will, this is not the case. Prior to the passing of these reforms, employees were allowed flexibility in making the decision on whether to be roistered in during public holidays. With the enactment of new reforms, this would not change in any way (Mcphee, 2015, p. 1).  Therefore, employees would be allowed decide on how to spend their boxing day. In this way both sides (employer and employees) are catered for in the long run. 

Furthermore, there is the general postulation that retail as a concept is a service industry (Mcphee, 2015, p. 1).  This is to say that clients have the inclination to shop. The desire to shop, amongst the general public, does not necessary subside with the onset of a public holiday. Therefore, in order to sustain this need, retailers need to be open. Given that large scale retailers have the larger variety of stock; they are the more capable to meet the public needs.  Small scale retailers on the other hand are not as definite in their stance. Those that oppose the relaxation on the restrictions assert that this would rob them of the few days in which they boost their incomes through the reduction of large scale retail monopoly (Cazes, 2013, p. 23). On the other hand, along with large scale retailers, some of them support the relaxation of said restrictions. This is because it would be beneficial to the entire large scale industry as a whole. This is through the removal of government red tape and the consequent creation of increased opportunities, for investment, employment and overall growth of the industry. In their opinion, the creation of competition between large and small scale retail is a small price to pay (Quaddus, 2015, p. 14).

In retrospect, a number of concerns are shared across the board by various stakeholders. For instance, the Union is well in support of the fact that with the relaxation of the restrictions, small scales retailers would be forced to share their boxing day spends. However, as asserted by experts this cannot concisely be said for convenience stores as the impact that they would feel cannot accurately be deciphered. In a bid to clarify the benefactors of this decision, the Council of Small Business Australia (CBA) defined large scale retailers as those whose employees are above 20 (Harris, 2015, p. 1). In contrary regard, some unions and associations asserts that there would be a high demand for various goods on the day in question.  For this reason, there ought to a wide range of supply to meet the demand in question (Quaddus, 2015, p. 32). For this to happen, both large and small scale retailers ought to be allowed operation on Boxing Day.  This is because; the most probable cause of client loss is lack of provision of highly demanded products during the time frame in question.

 Furthermore, The Australian Retail Association (ARA) asserts that the relaxation on Boxing Day trading restrictions would allow for the leveling of a previously uneven playing field. This is to say that the laws that previously existed were unfair to large scale retailers by allowing small scale retailers opportunities of income generation by default. However, through the relaxation of said restrictions both types of retailers would be allowed fair ground for participation. The employee body has not however exactly been supportive of this ban. Majority of the employees feel that this would deprive them of time that they are meant to spend with their families (Patty A., 2015, p. 1).  This is because Boxing Day is one of the few days that had a certain assurance of no work attendance. With the reforms, they would be deprived of yet another day that they could be able to not only interact with their families but accord themselves rest. In light of this, research by the Retail Council alludes that there is a shortage of employees that have willingness to go to work on Boxing Day (Mcphee, 2015, p. 1). This could be attributed to the general disposition that outcomes that are favorable to employers are usually unfavorable to the employee. For this reason, research states that in whatever circumstance employees are less inclined in favor of decisions that favor their employer primarily.

Logically, the more repugnant issue in this case would be the forceful deposition of employees to work on one of the few days they get to spend with their families. However, this is not the cases seeing that as previously postulated, they would be allowed freedom on whether to be roistered.  Furthermore, the move would largely booster the retail industry as whole. This is to say that the relaxation of Boxing Day restrictions allows the retail industry a greater chance of meeting its number one purpose; maximization of profits. Notably, retail is the major source of income for a large number of people. Therefore, the maximization of profits would see to it that there was increase / improvement in individual incomes. Therefore, rather than go into the new year with large and detrimental expenditures, income levels would contribute to a better start in the New Year. For this reasons, this paper concisely inclines in the support of the relaxation of Boxing Day trading restrictions.

References

Cazes, S. (2013). Perspectives on labour economics for development. Geneva: International labour office.

Harris, T. (2015, November 11). Convenience and Impulse Retailing. Retrieved April 5, 2016, from C-Store: http://c-store.com.au/2015/11/11/boxing-day-trading-restrictions-lifted/

Hatch, P. (2015, December 28). Business/Retail. Retrieved April 4, 2016, from The Sydney Morning Herald Website: http://www.smh.com.au/business/retail/boxing-day-sales-will-go-online-andwont-be-on-boxing-day-20151228-glvwi3.html

Mcphee, A. (2015, October 21). The Debate : Should all shops be allowed to open on boxing day. Retrieved April 4, 2016, from Sydney Morning Herald: http://www.smh.au/comment/the-debate-should-all-shopsbe-allowed-to-open-on-boxing-day-20151021-gkezex.html

Moody, S. (2015, September 8). Anger over major retailers Christmas trading hours bid. Retrieved April 4, 2016, from Nothern Star: http://www.nothernstar.com.au/news/Anger-over-major-retailers-Christmas-tradinghour/2765133

Patty A., N. (2015, November 12). Retail worker 'disgusted" that Boxing Day trading to go ahead. Retrieved April 4, 2016, from Sydney Morning Herald Website: http://www.smh.com.au/nsw/retail-worker-disgusted-thatboxing-day-trading-to-go-ahead-201511111.gkwjzj.html

Quaddus, M. (2015). Sustaining competitive advantage via business intelligence, knowldege management and system dynamics. Bingley: Emerald Group Publishing Limited.