Retailers expect the Coalition’s unexpected election victory to boost consumer confidence and discretionary spending while taking the pressure off wage costs and house prices.
While disappointed at the Conservative Party’s showing at last weekend’s election, leader Cory Bernardi said, “The election result was a win for common sense and decency. Australia emphatically rejected the class warfare and identity politics that Labor sought to make the battleground of this campaign. To their credit, the Libs mostly rejected that mantra and this provided a refreshing contrast to what has been in recent years.”
The Australian Financial Review reports, retail shares rose strongly on Monday in a relief rally triggered by the Coalition’s decisive win, with discretionary retailers and housing-related stocks leading the gains.
Retailers welcomed the end of a period of political instability, which had eroded business and consumer confidence, and said the Morrison government had a mandate for change.
“The public have given the Morrison government a mandate we have not seen for some time and the Prime Minister should embrace this opportunity,” Wesfarmers chief executive Rob Scott said.
“It will be important to progress the reforms and tax cuts presented in the budget to support investment and jobs, and then get on with addressing energy policy and action on climate change,” Mr Scott said.
Retailers also warned unions to respect the Coalition’s mandate and stop pushing for higher penalty rates.