With many retailers generating a third of their profits during this festive season the pressure is on for many to deliver a result - not just to keep shareholders happy but in some cases to survive. There is rarely a smoking gun solution to turning around the business but a systematic improvement across various areas (the 1% changes). Early engagement with your stakeholders and contingency planning can also help you be prepared should sales not go to plan.
More retail collapses tipped after analysing the financial health of retailers with more than 4000 stores, Macquarie says "profitability for apparel retailers remaining challenging", particularly for unlisted companies, as retail sales moderate and the lower Australian dollar raises import prices."Given the challenging retailer environment, we expect further retailers to enter into administration after the December peak trading period (i.e. in the first quarter of 2017)," the broker told clients.