In an Australian first, retailers will be able to access critical information about the health of their businesses and how they are faring against their competitors following the launch of the Australian Retail Index (ARI).

Created by accounting and advisory firm, BDO, and cloud-based software provider, Retail Express, the free service will operate across four key categories; fashion and accessories, furniture and homewares, sporting and recreational goods, and other general retail.

BDO’s national retail lead partner, Simon Scalzo, says the Australian Retail Index will deliver data that is far more detailed and timely than what is currently available.

“Our information will enable retailers to react to upturns and downturns in business as and when they happen.

“It will give them access to market intelligence quicker than ever before, enabling streamlined decision making,” Scalzo says.

“More international retailers are making their presence felt in Australia, for instance, H&M  just launched here in the past few weeks, and the rise in online retailing means those  involved in bricks and mortar need to be a lot smarter.

“The Australian Retail Index will give them an edge.”

Phase one, to be launched later this month, compares the percentage change in sales in each category from week to week, listing sales dating back to December 2012.

“Retailers will be able to benchmark their performance against the market and their peers,  and make time sensitive decisions about their businesses,” Scalzo says.

The Australian Retail Index looks at thousands of individual retail stores nationally and has a high degree of statistical relevance. While 60 percent of purchases in stores are card-based, which is the only information that has been available, the ARI is based upon 100 percent of transactions, including cash sales and lay-bys.

Phase two of the ARI, to be introduced later this year, will be a subscription model,  providing more detailed information.

While phase one will remain freely available, phase two will provide daily updates and a state by state breakdown.

Data will be divided into metropolitan and regional sales.

Retailers who subscribe will also be able to look at the average size of customers’ purchases  and return rates.

The Australian Retail Index will be available on computers, tablets ,and smart phones via a secure app.