Despite the Global Financial Crisis there have still been a few winners. Notably retailers in the supermarket and fast food sectors have done well as Kiwi customers stock to the basics.
Now it appears that supermarket sales growth may be plateauing. Could this, and the anticipated tax cuts indicate that customers are about to start spending in other categories again?
The GST fear factor may help focus consumer attention on the dormant homewares and appliance sectors for a few months but beyond that who knows?
Another view of supermarket sales could be that while their recent expansion and rebranding activity has given the customer an increased number of good outlets they have less brands to choose from, so an element of same store competition may now be emerging.
Our Man in Europe
If you believe in global warming, then come here in May! Its colder than an Auckland winter! Add volcanoes and floods to that and it makes travelling difficult.
The European Company that RCG is associated with remains confident that the problems in Europe will be overcome.
If you take Berlin as an example, this city epitomises Germanys dominance in Europe and is a complete variance to the poorer neighbours such as Poland. The commercial development in Berlin is staggering. A new central train station, the Sony centre which is an architectural achievement, and the interior of the Reigstag building created by the English architect Foster, is outstanding.
There’s not a great deal new in retail, but consumers are spending again in Germany although fashion retailers are finding it difficult to move summer merchandise because of the dismal weather conditions. Mulled wine and cosy indoor chats in May does not encourage retail spending on beachwear!
NZ Retail News
Tiffany shines in China
Tiffany & Co has opened its newest store in the Pudong area of Shanghai, China.
The 3100sqft Tiffany & Co store is located in the new IFC mall that includes luxury hotels and the 101-story World Finance Centre, one the tallest buildings in the world.
(Source: www.insideretailing.com.au)
Woolies plans new shopping centre
Woolworths wants to buy part of the Brickworks Markets site at Torrensville in Adelaide’s western suburbs and build a shopping centre there.
The group says it would preserve the historic brickwords kiln and existing weekend market.
(Source: www.insideretailing.com.au)
The end for DVD rental shopfronts?
Last week, Movie Gallery, the second-largest movie rental chain in the US after Blockbuster, threw in the towel and decided to close its 1900 stores and liquidate all remaining inventory.
It marked the end of at least three years of drip torture for Movie Gallery, whose once imposing 2400 store empire has succumbed to competition from online movie rental players, digital downloads, and the increasingly ubiquitous Redbox, a retailer that rents movies for a single dollar out of kiosks the size of vending machines.
(Source: stuff.co.nz)
Walmart sales rise as prices drop
Walmart’s first-quarter net income rose 10 per cent as the world’s largest retailer benefited from cost-cutting and robust growth in its international business.
But Walmart said a key measure of revenue dropped for the fourth consecutive quarter as it continued to see a decline in customer counts at its US namesake stores.
(Source: www.insideretailing.com.au)
Woolworths may sell bonds in debt move
SYDNEY: Woolworths, Australia’s biggest retailer, may sell bonds as it seeks to refinance about A$3 billion ($3.7 billion) of debt by the end of 2012.
“There is a place for the local corporate bond market within our debt profile,” said group treasurer Asrar Rahman.
(Source: NZ Herald)
Budget 2010: Retailers say timing bad on GST rise
The large majority of retailers believe the timing of the Government’s GST increase will be bad for their business.
And many economists say they do not expect a spend-up in shops before the new 15 per cent levy takes effect in October.
(Source: NZ Herald)
Proposal for $500m national convention centre – but where?
The New Zealand convention centre market is about to grow significantly with not only an expansion of Sky City’s Auckland facilities but also a national convention centre large enough to host at least 3500 people.
But the site for this remains a mystery, and wherever it ends up being located the centre will be in direct competition with Melbourne’s new similar-sized convention centre.
(Source: NBR)
