“Australia's retailers have started the year where they ended it
— in a world of pain.”
This
was the quote from an article on the ABC this week. Australian January retail
sales were up only 0.1% which surprised many who expected a rebound from
December’s poor result (down 0.4%)
Meanwhile
in the US, there were reports of 5,300 store closures over coming
months including the likes of Gap, Victoria’s Secret and K-Mart. Payless Shoes
(gone into liquidation) are closing 2500 stores.
And
while it is fine to talk about the statistics, there is a more compelling
element to the pain and one that is echoing around QVM right now.
Financial hardship is very real for many traders, and even for those getting
by, there is no escaping the frustration of declining trade. The personal
impact of these times is inescapable.
There
are calls for government action because consumer demand is such an important
part of our economy’s health. The Reserve Bank is taking a keen interest in the
performance of the economy as it mulls over interest rates. Major retail
players like Myer are in the limelight as they grapple with extreme change in
our industry.
For
market traders there is plenty of advice, sometimes conflicting, often without
guarantees, and only the game (or foolish) claim to have simple answers. As each
of us work through our own situation it might pay to focus on what we can
control and leave the rest to others. Frustration has little to offer.
By Greg Smith