Ex-Myer boss Bernie Brookes slams Victoria ‘scorched earth’ policy
Former Myer boss complains of poor Victorian consultation over lockdowns, as he leads a rescue of fashion retailer Colette.
Two of the nation’s top retail executives have issued a stark warning to the Victorian government: start listening to the sector or watch it slowly disappear.
Former Myer boss Bernie Brookes, who is now the new owner of collapsed women’s fashion accessories chain Colette by Colette Hayman, said the Andrews government was adopting a “scorched earth” approach to retail.
At the same time Paul Zahra, one-time chief executive of upmarket department store David Jones and now CEO of the Australian Retailers Association, echoed comments made by Wesfarmers boss Rob Scott this week that the Victorian government had not engaged in meaningful consultations with business as it designed its pathway out from stage-four restrictions.
The two are the latest corporate leaders and mall operators to heavily criticise the Victorian government for its decision to extend the stage-four restrictions that might not see retail open again until November.
Speaking to The Australian on Wednesday, Mr Brookes said politicians were making the decisions affecting investment and jobs but not engaging with business.
“There has not been a consultative environment and I think that is the biggest issue,’’ Mr Brookes said.
“From my point of view, we budgeted for a return from lockdown in Melbourne in late year and it might surprise us to be October because we have seen what is happening.
“The lack of consultation has not been good for any business, retail or other form.”
Mr Brookes, also a former Woolworths executive, said this lack of consultation was also evident earlier in the year, when Premier Daniel Andrews unveiled his stage-four COVID-19 restrictions that clamped down on the number of workers allowed at key sites such as warehouses, distribution centres and abattoirs.
The highly restrictive rulings sent a shudder through the food manufacturing and retail sectors.
“It is obvious that the lack of consultation in regard to the supply chain, everything from fruit and vegetables, meat, the lack of consultation in opening and closing etc — I think it has been very much a scorched earth approach,” Mr Brookes said.
In August, when details of the stage four lockdown were revealed, the nation’s leading supermarket chains and food suppliers warned the highly restrictive rules around the number of workers at manufacturing, warehouse, distribution centres and other sites could constrict food and grocery supplies not only in Victoria but the rest of the country, given Melbourne’s key role in the national supply chain.
Mr Zahra revealed on Wednesday that the promise by the government to consult soon turned into one-sided information sessions.
Mr Zahra said there were no signs that the state government would change its speed and course to come out of stage four restrictions.
“We were called into what was classed a consultation session but were more like information sessions. Unfortunately there was very little feedback that was taken on board at this point,’’ Mr Zahra told the National Press Club in Canberra.
“I have a great relationship with the Victorian government. We want to continue that relationship. However, we believe we were asking for a progressive reopening in retail and what we got was a delayed reopening.
“As a result, most of our members are small business, and we believe around 50 per cent of those small businesses in Victoria will permanently close.’’
He said there were “no signs yet” Mr Andrews would modify his strict timetable for opening up the economy, which could result in retail, restaurants and other venues remaining closed until November unless incredibly low daily infection rates of COVID-19 are detected in the state.
Mr Zahra said the government’s consultations with the business community should have dealt with issues beyond health factors such as the daily COVID-19 cases, and included a much broader conversation around financial and mental health issues as well.
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