Is Australian retailing really
that buoyant?
We are not so sure
..
Last week we reported that the CEO of Marks & Spencer has said that he cannot see any green shoots walking Australian Shopping Centres last week and observing the massive discounts in all categories nor can we.
· Some of the discounts for so early in the season 50-70% Off in some instances do not reflect a buoyant recovering Australian retail sector.
OK Australia is not the UK thank goodness but we warn both sides of politics that any crimp in stimulus spending or any RBA interest rates before February 2010 will flatten many retailers resulting in retail unemployment.
The RETAiL Alert Group is bullish by nature recognising that retailing as an industry can always be improved and the importance of keeping that smile on the face when talking with stressed sales teams but underpinning retailing has to be consumer confidence any actual or perceived stimulus cut or any increase in interest rates before Christmas would be a disaster for many retailer.
Strained looks on the faces of some retailers and the ankle grabbing by some when you enter their stores shows for some still getting annual Shopping Centre Shopping Centre increases above CPI and double digit lease rent renewals with sales increases patchy or non existent not good.
After saying this there are many positive actions Australian retailers can and should make.
· The retailers who are really struggling are those which ignored the advice we have given since April and repeated in August radically adjust your OTBs, marketing and on-line offer living three weeks closer to your suppliers or factories in a supply chain sense and stock hold be ruthless with dead stock, lift, pump and push hero ranges and basics cut risk top end purchases by at least 5%.
It is time to review where the season is going suggest you contact us for our views; email Summer Christmas season review.
Tony
Standley
Principal
The RETAiL Alert Group
(Australia)
Mobile +61 (0)41 924 0497
e-mail
info@adsass.com.au
Fax +61 (0)2 9987 0633
Website
http://www.retailalert.com.au
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