Even so, most major companies reported solid revenues in the last half after incorporating online retailing into their bricks and mortar businesses. Other retailers followed suit to counter tough competition from offshore online retailers. M&A remained active, with many retailers focusing on consolidating their companies by acquiring small businesses and gaining market share in the tough retailing environment.
With the housing market overheated and growth falling, the Australian economy actually contracted in the third quarter of 2016 ended September ¾ the first contraction in economic growth since 1989. Major ratings agencies in mid-December maintained the country’s coveted AAA rating ¾ but only just, amid a deteriorating economic and fiscal outlook.
Retailers are as such braced for a deterioration of the unemployment rate and weak household income growth. Economic concerns and high levels of debt could mean lower spending in coming months. Online retailing is likely to outpace traditional bricks and mortar store sales as it is growing steadily and consumers see it as a way to cut household costs amid tighter budgets.
#retail #onlineretail #eretail #australia #economy #asiapacific #mergent #industryreports #MergentInc #publiclibraries #academiclibraries #moodys #finance