Three companies that are adapting to the evolving retail environment

Three companies that are adapting to the evolving retail environment. There is no doubt the domestic retail landscape is evolving. Volatile economic conditions following the GFC, high debt levels and low discretionary spending are fuelling changes in the retail industry and the way in which consumers are spending. Business models that are susceptible to the impact of the 'disruptive' nature of the internet, for example Myer and David Jones are structurally challenged and will remain so unless they adapt. Retail Food Group, Flight Centre and Greencross all compete in niche markets and are adapting to the changing landscape and will continue to be winners in the discretionary retail space. All of these stocks have been & continue to be core positions for the fund.