Is the Australian Retail Sector a good investment? With the demise of High Street names such as Dick Smith, Daryll Lea etc there has been much negative sentiment in the market questioning if the Australian Retail sector is a good inv estment. Last week, I was inv ited to attend an ev ent hosted by Myer, their Spring Fashion launch, and things are looking v ery upbeat for this High Street stalwart. Just quietly, Jennifer Hawkins was also looking absolutely stunning, too!!
Where are the opportunities in the Australian Retail Sector? The two main players, Myer and Dav id Jones hav e been through some v ery challenging times. Online carv ed a huge chunk out of their High Street businesses. Some hav e been looking for bargains, while others have looked for serv ice with companies such as Net-A-
Porter prov iding exceptional serv ice in the online space (I am speaking first hand, as my wife seems to get deliv eries most days!) But is there light at the end of the tunnel? I believ e that there may well be. One v ery supportive tailwind is the mov e in the Aussie/US Dollar, which has really remov ed any incentiv e to want to shop in the US. Back at 1.05, happy days, today, a 75.4 – no chance!! This more than most things, is a welcome repriev e, if not a stay of execution for some. Taking a look at Myer, the mov e up from a low, 12 months ago of 83cents to a recent high of $1.44 is testimony toward a sector that for the past few years has had few friends. Does that make it or the Australian Retail Sector a good inv estment, maybe. That said, all inv estors should be aware that a more significant slowdown in the economy will result in retail being hit hard, and most likely first. So yes, there is opportunity for a good inv estment in the Australian Retail sector, but one that needs to be carefully managed from a risk management perspectiv e based on the abov e. If you need some help to get started or master this kind of thing, then let us help you with this through one of our professional courses. Click Here to access.