Home / Knowledge / News / Apparel/Garments / Australian clothing retailers face tough times
Australian clothing retailers face tough times
25
Jul '11
Clothing retail stores in Australia are facing tough times Consumers have still dug their hands deep in to their pockets and are willing to spend only on essential items.

Despite sale posters visible on most of the stores, the month of June attracted a poor response from shoppers. Retailers are worried that if the trend continues, they will have to mark down the goods further.

The last few months have proved to be very bad for the garment and fashion retailers, as shoppers are not lured even by offering massive discounts.

The consumers are spending only as and when, they see value in the products they buy. Consumers are worried over the hike in prices of essential items like food and gas. This has led to a slowdown in discretionary spends.

Delving out reasons behind the situation, experts are of the opinion that, the consumer sentiment index (CSI) has gone down drastically. People are used to CSI cycling in a range of (+/-) 10% but there has been a drop in CSI by around 35% since June 2010.

Huge price changes in utilities, child care, rates, education are crowding out retail, i.e. there is a reduction in private consumption & investment due to excessive government borrowing.

Besides, except for some recent stimulus-induced growth, the housing sector too has been in the doldrums.

There has been a decline in GDP; consumer spending is weak in departmental stores and on food. Spending at department stores fell 3 percent, and consumers spent 0.4 percent less at food retailers.

Consumers are burdened with rising energy prices and living costs although some are gaining by the country's sturdy exchange rate through online shopping.

Building approvals fell 7.9% in May, led by elevated borrowing costs, declining house prices and feeble demand. There has been an increase in foreign and public debt too.

To bring the situation under control they aver that, cost of living should be reduced; government should make provisions to increase activities in housing sector and consumer spending.

The government is giving out associated compensation proposals to compensate the losses of the households. Although it is unclear, whether the policy will be stimulatory, neutral or contradictory.

The experts however, do not see a dramatic improvement until later in 2013 and consider New South Wales and Queensland as bright spots or as upcoming markets.

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 26th Jun 2017

GSTN registration reopens

E-commerce operators and TDS (tax deducted at source) deductors can...

Textiles | On 26th Jun 2017

Expedite release of ROSL pending claims: TEA to Centre

The Tiruppur Exporters' Association (TEA) has again urged Union...

Textiles | On 26th Jun 2017

'Export promotion schemes to continue under GST regime'

The export promotion schemes will continue under GST regime, said...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search