Geldzug: BUYERS BEWARE OF AUSTRALIAN AND US RETAILERS!

Geldzug: BUYERS BEWARE OF AUSTRALIAN AND US RETAILERS!

16th May, 2017

The imminent arrival of Amazon in Australia has frightened many investors away from Australian retailers. We think that shareholders in traditional retailers should be very nervous indeed – much like the Australian media sector, the transformation of Australian retailing has barely begun.

The US retailing sector is much further down the painful path to re-invention, simply because the US is where most of the successful online retailers originated. US e-commerce sales rose from 10.5% of all sales in 2012 to 15.5% in 2016. As the chart below shows, more stores have closed in the first four months of this year than in the whole of 2016. Retail companies are going bankrupt at unprecedented rates: the ratings agency Fitch estimated in April of this year that the bond default rate by retailers would leap from 1% in the last twelve months to 9% by the end of 2017… [read more]

2017-05-17T13:14:00+00:00 May 17th, 2017|