Economic focus
- Australian retailers, especially those dependent on seasonal purchases, could face new pressures unless the weather starts to warm up in the next few weeks. Capital cities such as Sydney, Melbourne and Adelaide are experiencing their coldest starts to spring for over a decade.
- Simply, consumers are unlikely to update their spring/summer wardrobes until the weather starts to warm up. And if temperatures remain mild, this will further hinder purchases of goods like electric fans, air conditioners, outside furniture and beach equipment.
- Retailers are already under pressure from conservative consumers with both David Jones and Myer still heavily discounting hard-to-shift stock.