Despite recent trends indicating the retail industry is slowly recovering, spending at department stores is at its lowest in over two years. According to the Bureau of Statistics, October saw the fourth consecutive month of rises with 0.2 percent increases in the retail industry. In contrast, department stores such as Myer and David Jones suffered a fourth consecutive slide in spending, falling to its lowest since February, 2009.
Increases in spending on food and cafes have camouflaged the weaknesses in other sectors of the industry. The continuing weakness in department store spending comes as a result of an increase in online shopping due to the strong Australian dollar over the past year.
The uncertainty of the European market in conjunction with high interest rates has contributed to lack of consumer spending confidence. Consequently, more and more businesses are manufacturing products overseas in a bid to minimise expenditure and maximise profit. Businesses that are importing products have capitalised on the relatively strong performance of the Australian Dollar over the past year. If you would like more information on importing from or manufacturing products overseas, contact us on 02 9653 9127 or email us at firstname.lastname@example.org.
Yeates, C. (2011), Tills Quiet at Department Stores, Sydney Morning Herald, viewed Dec 2, 2011, http://www.smh.com.au/small-business/trends/tills-quiet-at-department-stores-20111202-1o9wh.html