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Money Retail shows signs of recovery

11:05  31 july  2017
11:05  31 july  2017 Source:   msn.com

Woolworths to be a star of profit reporting season, fashion retail struggles

  Woolworths to be a star of profit reporting season, fashion retail struggles Woolworths to be a star of profit reporting seasonOne of the biggest battlegrounds in retail is between newly-energised Woolworths and Coles.

Food retail spending has picked up.© AAP Image/Keri Megelus Food retail spending has picked up. Retail sales are showing signs of a recovery following 18 months of easing sales growth, according to latest figures from Australia's peak food and grocery body.

Sales revenue across the country's retail sector grew 4.6 per cent to $26.4 billion during June compared to a year ago, a retail index produced by the Australian Food and Grocery Council (AFGC) and pallets business CHEP Retail Index shows.

This follows 18 months of softening growth, including a 2.6 per cent rise to $25.7 billion in March.

The AFGC-CHEP Retail Index is up 3.6 per cent for the June quarter compared to a year ago - stronger than the 2.8 per cent increase during the March quarter.

Woolworths to be a star of profit reporting season, fashion retail struggles

  Woolworths to be a star of profit reporting season, fashion retail struggles Woolworths is expected to be one of the stars of profit-reporting season as some other retailers struggle in a sluggish economy. One of the biggest battlegrounds in retail is between newly-energised Woolworths and Coles.Coles boss John Durkan, outwardly at least, is not bothered by the resurgence in his biggest competitor."There's plenty of opportunity for us if we deliver for our customers and give them low prices, high-quality product and make it easy for them to shop. There is no doubt there's enough trade out there for everyone," he said.

It also shows the recovery is expected to continue, with sales turnover forecast to rise 4.2 per cent in August and 4.1 per cent during the September quarter.

AFGC chief executive Tanya Barden says the index shows the retail sector is set for a modest recovery and is a good indicator of what to expect on Friday when the country's official retail trade figures are released.

"We have seen food retail spending, in particular, pick up and fill some gaps from weaker non-food retailing, with catered food driving most recent improvements," Ms Barden said.

"Household goods have been the best performer for non-food retailing."

The AFGC-CHEP index uses data from CHEP pallet movements and is produced by consultancy Deloitte.

Amazon's Australian invasion: separating hype from reality .
Amazon, the $US500 billion ($630 billion) gorilla stalking Australian retail, took a giant step towards establishing a bona fide e-commerce presence in this country last week. It appointed one of its top German executives to run its local operations, and signed a lease on a former Bunnings Warehouse space on the outskirts of Melbourne for its first fulfilment centre. In a press release heralding this news, Amazon declared it would create hundreds of jobs in Australia. In fact, Robert Bruce, Amazon's director of operations in this country, went quite a bit further than that. "This is just the start.

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