Clothes retailer cops heat on prices
A northern Australian financial adviser says he is “deeply disturbed” by the business model of a clothing retailer with a significant Aboriginal clientele, saying that similar items can be purchased at Kmart for a fraction of the cost.
Broome-based Alan Gray, an accredited financial counsellor and managing director of Bush Money Mob, said he was motivated to speak out amid claims by Urban Rampage, which has 10 stores nationwide, including outlets at Alice Springs, Katherine, Tennant Creek and Nhulunbuy, that it empowers Aboriginal customers.
In late February, corporate regulator ASIC suspended Urban Rampage’s ability to sell goods on credit via Centrepay, in which Centrelink customers have their bills and payments deducted prior to receiving their benefit. At the time, ASIC said it held concerns that Urban Rampage was targeting vulnerable, financially illiterate customers without appropriate safeguards to ensure they could actually afford the goods.
The company said more than 80 customers had lodged complaints with Urban Rampage about the ASIC suspension, while more than 700 signed in-store petitions calling for Centrepay’s return.
However, Mr Gray claimed Urban Rampage is in the business of selling “lowgrade products [at] grossly inflated prices”.
Mr Gray said that on March 20, he photographed items for sale at Urban Rampage Broome, then compared the prices with similar goods available at his local Kmart.
A business shirt, a hoodie jumper, and a mink blanket go for $69.95, $74 and $89.95 respectively at Urban Rampage, according to his photographs.
However, according to Mr Gray, similar items can be obtained at Kmart for $15, $25 and $19 respectively.
He said he was “deeply disturbed” by the company’s business model. Urban Rampage’s parent company derided the comparison as unfair and said the goods were not like-for-like and involved different suppliers and supply chains. Urban Rampage’s parent company continues to fight against its suspension from using Centrepay.