The lost decade for Australia's discretionary retailers

The lost decade for Australia's discretionary retailers. Discretionary retailers have been beset by persistent revenue headwinds. The consumer's dormant animal spirits and intense retail competition (particularly from e-tailers) have meant sell-side analysts have not lifted their EPS projections for the sector for over four years now. Indeed, the sector's forecast profitability is at the same level it was in 2005. This has clearly been the lost decade for Australia's discretionary retailers. The sector needs to accept that a cautious consumer represents the new normal. Discretionary retailers therefore risk facing another decade in the wilderness if they do not trim costs, lift productivity and consolidate to offset the prospect of continued weak revenue conditions. Full analysis available on the Evidente Blog: (VIEW LINK)


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