fashion, household goods a boost for retailers
Michael Kors Shoulder Tote bag The success of the international fashion brands and home in Australia has been a boon for the retail owner, at a time when sales flatlining at the local level.
Consumer confidence has shown a slight improvement in the last month, but consumers are vote with their feet and prefer the new brand for a point of difference.
The Westpac-Melbourne Institute index of consumer confidence rose 3.5 percent in August, it took the index to 105.7, the highest level since March. A number above 100 indicates that the number of optimists outweighs the number of pessimists. The feeling is now 9.4 percent higher than a year ago was.
Commonwealth Bank economist Gareth Aird led the improvement in the reduction of interest rates and the confirmation of a federal election - which eliminates the uncertainty - and rising property prices in some states and sharemarket more dynamic.
A lower flow rate'' means lower mortgage rates,'' said Mr. Aird. '' And that means lower monthly mortgage payments, the ability to repay the new debt debt faster or cheaper.''
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But sales are still concentrated in the less traditional areas of mobile phones, eating out, cinema patronage, beauty and fashion brands abroad.
According to Goldman Sachs analyst George Batsakis retail, for the year ended 30 June Zara Australia recorded revenues of $ 107 million through its six branches, with earnings before interest and taxes (EBIT) of $ 27 million.
'' This is only the second year of operation Zara Australia, but its sales are now almost equal to only clothing company First Investment Group,'' said Mr. Batsakis. '' In comparison, just sharing Portman Group, whose profits of Goldman Sachs valued up to $ 110 million for 2013, operated in Australia for many years. Moreover, Zara Australia profitability ratios are very high, with an EBIT margin for fiscal year 2013 by 25 percent compared to only 10 percent of the group.''
Mr. Batsakis said Zara Australia Return on assets for 2013 was 46 percent compared to the same group of 27 percent.
For major donors retail data on retail sales by category also showed customers turn away from department stores to retail products. Michael Kors Totes bag