Earlier this month, millions of Australians received a pay rise following a 4.75 per cent increase in the minimum wage. The SDA and other unions have celebrated the decision as a victory for workers. However, employer groups, including the Australian Chamber of Commerce and Industry, have argued that it will further increase the financial pressure already weighing on businesses. For independent retailers, the wage rise is just one addition to a growing ledger of higher rents, freight, insuranc
ance, energy and compliance costs. It’s a reality that Bendigo Pottery general manager Alyssa Ruseitti knows all too well. “Individually, each increase may seem manageable, but together they place significant pressure on businesses like ours.” There have always been easier ways to make a living than owning an independent shop.
Wages and consumer behaviour
Established in 1858, Australia’s oldest working pottery has borne depressions, wars and floods. Wage increases sit alongside a myriad of expenses, including higher energy bills, freight charges and raw material costs. To make matters more challenging, they are also enduring dramatic changes in consumer behaviour. “The biggest change is the pace of business,” general manager Alyssa Ruseitti told Inside Retail. “Customers expect a seamless experience whether they’re visiting us in person or shopping online.” The pottery has, in response, invested in product efficiencies and visitor experiences, ultimately allowing customers to watch ceramics being made, attend workshops and purchase products made on site.
A similar figure confronts Newcastle’s Maclean’s Booksellers, which has been running for over 29 years. Owner Kathy Sloss explained how book stock, wages and rent absorb the overwhelming majority of revenue, leaving only around 10 per cent to cover software, book databases and other operating costs. “If [wages] go up, it absolutely has a huge effect on whether or not our business is financially viable,” Sloss said. “Having said that, the cost of living is going up, and I am keen to support our staff to make a living wage.” Customers may see shelves, displays and welcoming staff, while behind the scenes, owners spend every day calculating how to absorb another unavoidable cost.
17 years of Dirty Janes
Jane Crowly, founder and CEO of Dirty Janes antique stores, likens running an independent business to raising a child that has long overstayed its welcome.“Wanting to open a retail business is not for the faint-hearted,” she told Inside Retail. “It takes almost every minute of your waking day, it takes commitment not just from you but from your partner and your children. Sometimes I think it’s as needy as another child, one that’s never going to move out.” Crowly has spent 17 years sustaining Dirty Janes through the advent of social media, artificial intelligence, inflation and Covid – the pandemic in particular proved formidable, but the years that followed placed even greater strain on small retailers. When sourcing vintage stock became more difficult, and restoration costs escalated, Dirty Janes opened its marketplace to include artists, ceramicists and artisans alongside antiques. Her Canberra emporium now houses a “Living Artist Gallery”, welcoming creative businesses whose work sits comfortably beside vintage treasures.
Independent support over Amazon
Across all three businesses, it’s clear that the greatest competitive advantage cannot be placed on a price ticket. Bendigo Pottery never planned to compete solely on price because customers are searching for authenticity, Australian craftsmanship and, especially, a connection to 168 years of heritage. Maclean’s Booksellers hears a similar customer sentiment from readers who tell Sloss, “I could have ordered through Amazon, but I wanted to support you.” Dirty Janes has transformed shopping into an outing, aimed to welcome customers whether they arrived with “$5 or $5000” to spend, where dogs, parrots, llamas and even goats are welcome companions. It sounds faintly eccentric, but it proves that independent retailers prosper by creating places people remember, conversations they value and experiences impossible to package in an online checkout.
There is no suggestion from any of these retailers that the pressures confronting independent businesses will ease any time soon, yet none speaks with resignation. Bendigo Pottery believes “the future belongs to businesses that are authentic, adaptable and genuinely connected to their communities”. Crowly said adaptation has become “second nature”, while Sloss continues drawing confidence from readers who choose an independent bookshop over the convenience of a global marketplace. The observation is something every independent retailer really understands instinctively: a thriving business is built on accumulated character, accumulated knowledge and accumulated relationships, each developed over decades and absolutely impossible to replicate overnight.