While sales
continue to struggle under the sheds at QVM there are a few things happening out
in the wider retail world that give cause for concern.
Perhaps leading
the concern are reports that the recent Federal Government tax concessions are
not filtering through to retail. When Kevin Rudd opened the purse strings back
in 2008 the impact on retail buying was almost immediate. This time, there is
concern that tax concessions are going to pay down debt and the much needed
boost to the economy is simply not happening.
September
retail sales fell well short of expectations although foot traffic is up in
October.
A recent global
survey of CEO confidence recorded a 21% drop in sentiment by our leaders with
climate change, Brexit, trade wars and Hong Kong protests blamed for the decline.
https://www.insideretail.com.au/news/ceo-confidence-plunges-over-past-12-months-201911#daily
The
Australian Retailers Association is about to go through a shake-up with long
time chief, Russell Zimmerman, departing and major retailers joining the group
for the first time. This follows a failed attempt to join the ARA and NRA in
one body.
Struggling
department David Jones recently announced the sale of its building on the south
side of Bourke St. Mall to provide better facilities in its store across the
road although observers suggest it is more about pervading financial issues for
the group with major losses over the last two years.
Economic
commentators are predicting another interest rate cut although talk is more
about sitting tight and seeing what happens globally. Even the Reserve Bank has
been described as having a “wait and see” approach, as it looks to others,
including the Federal Government, to make moves.
At a local
level, Traders are reporting unexplained fluctuations in business levels. There
have been increasing occasions when good crowds simply do not translate to
sales and the normal boost provided by events like the Spring Racing Carnival
is not evident. Traders are reporting a good variety of visitors, and a positive
response to a day out at QVM, but shopping bags remain scarce.
At present
there is a lot of head scratching going in and in racing language, perhaps we
are just waiting for someone or something to break out of the pack and race
forward. Until then we might need to keep a tight rein on expenses and make the
most of limited opportunities.
By Greg Smith