The news just keeps getting worse for big retailers. With DJ’s second massive write down recently hitting the headlines, and department stores in the UK also struggling for sales, another big US retailer, Barneys, has fallen into administration. Online sales and increased competition are partly to blame, but another key factor is adding to the department store misery.
It’s the recent decline in the number of middle-income households here in Australia and around the world. And with the decline of course comes the reduction of retail sales to this demographic, as well as the growth of retailers selling to the discount and luxury markets that have bucked the trend of sluggish growth. Is this yet another nail in the coffin for Myer and DJ’s? Time is quickly running out it would seem.
Roger talks with 2GB’s Luke Grant about the recent struggles of the big department stores here in Australia and overseas.