Retailers Queue Up For Profit Downgrades.

Earlier in the week it was Noni B announcing that poor trading conditions over recent months had forced a downgrade of their full year profit expectations. They were expecting profit to fall from $3.9 million in 2009/10 to $600,000 - $800,000 in 2010/2011.

In a shock announcement today, David Jones said  that their profit for the 6 months to July could slide by 12%. Chief Executive Paul Zahra said ''The dramatic and rapid deterioration in trading conditions … has been unprecedented''.

Other retailers are expected to make similar announcements as consumer confidence drops in a manner not seen since the 2000 bursting of the dotcom bubble and the introduction of the goods and services tax.

Every story has a good side and it is some comfort that the pain we traders have been feeling for many months is at last being recognised by the big players as a retailing reality.