It’s not all good news though. JB Hi-Fi said at its AGM that same-store sales are down by more than 2% in the first quarter.
But Esho says the trading updates are a good indication that retail may very well be getting back on its feet.
“At some point, with unemployment being where it is, people are going to have to start resuming their discretionary spending. So I think the larger retailers which are listed and do have scale could see improvement.”
“I think there’s hope. Whether or not that materialises is yet to be seen.”
The comment is bolstered by yesterday’s positive building approvals data, with economists suggesting rate cuts are now beginning to filter down to the property market – which will in turn help boost retail sales in the homewares category.
Zimmerman says the businesses which will be the first to experience a recovery are those investing in new and innovative ways to shop – such as Country Road and its omni-channel strategy.
“Certainly Country Road and its counterparts are moving into the online space, and doing what retailers should be doing – engaging in a multi-channel way.”
Esho says businesses need to look at the example of a company like Super Retail Group, which has concentrated on focusing on niche markets.
“They’ve got the auto segment, the outdoor segment, and are moving into a niche category. I think it’s a smart way of doing business.”
Esho says the company is a good example of a business investigating new ways to get people to shop in a troubled retail environment – and it’s a strategy more businesses should be paying attention to.
“The market has responded and it’s up to retailers to convince customers they should be spending more.”
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