Urbis Think Tank
Urbis Retailer Monitor Feb-11
Retail sales results for the first half of FY11 have been mixed, with most retailers reporting flat or low growth. and more disappointing results than upside surprises. Consumers remain cautious, with some impacts from the November interest rate increase and cool weather. Consumers are also saving more.
Coles and Woolworths achieved solid sales increases, but discount department stores and Myer have been weak. David Jones was flat.
Price deflation is causing impacts on profit margins, particularly in consumer electronics, with all retailers in that sector suffering profit impacts. Kathmandu is the stand-out exception among bricks and mortar retailers with strong results.
In the Online segment, Webjet achieved strong sales growth but weak margins, Woolworths reported 75% increase in online sales, from a low base.