Sunday 1 February 2015

Falling A$ To Impact On Retail Prices

Citibank retail analyst Craig Woolford has said that Australian retailers will need to find ways to respond to inevitable price rises caused by the fall of the Australian dollar.

With the A$ down 16% against the greenback, imported goods will cost more, particularly in the fashion and electronics fields. Options will include lifting prices to maintain margins, maintaining prices with lower quality goods, and re-jigging the discounting and promotional aspects of retailing. Retailers will be hesitant to increase prices in a market where consumers are setting the rules.

Perhaps the best piece of advice we can give QVM traders is to continue looking for new and innovative products that stimulate consumers beyond pure price comparisons.