Retail Upheaval
Roger discusses the recent developments in respect of Channel 9 and CVC, and the ongoing pressure on Australian retailers from online purchasing with Ticky Fullerton on this edition of ABC1’s The Business broadcast 10 October 2012. Watch here.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
sambirmingham
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Retail faces headwinds, no doubt. But I still think people are overstating the impact of the web.
Is online shopping growing strongly? Absolutely. But it still only accounts for, what, 4-5% of retail spending.
What else has changed in the past few years which could be impacting retail growth? Property prices have stopped risely and rampant debt-fuelled consumption has slowed. Anyone could be a retailer (or advertiser or any number of related consumer businesses) when banks were expanding their balance sheets at 15%pa.
The pie was getting bigger so fast it didn’t matter that digital disruption was taking a slightly bigger slice. But now that the pie isn’t growing exponentially, it’s easier for incumbents to blame new entrants rather than acknowledge that their past success was more a product of good fortune (and greed) than good management.