Investment Research Report: Australian Retail Sector Analysis 2020

This investment research report provides an in-depth analysis of the Australian retail sector. It begins with an overview of the industry, including consumer spending, classification of retail centers, and sales growth. The report then analyzes the existing literature, highlighting the sector's contribution to the Australian economy, profitability of retail businesses, and the challenges faced due to falling housing prices and online competition. The analysis further explores productivity levels, retail sales trends, and market segmentation. Key market trends such as the influence of foreign companies, growth rates in different states, and the rise of online platforms are discussed. The report also examines the competitive landscape, identifying key players and their strategies. Finally, the report offers a conclusion on the future of the retail sector and provides a reference list of sources used. This comprehensive report offers valuable insights into the current state and future prospects of the Australian retail industry.

INVESTMENT RESEARCH REPORT
ON RETAIL SECTOR OF AUSTRALIA

INTRODUCTION
 The research report on the retail sector of Australia should
begin with some of the basic information of the sector that
would provide an overview of the dynamics of industry.
 Description of retail sector in terms of the consumer
spending, classification of centres and sales growth.
 Some of the retail centre includes regional centre, sub
regional centre, super regional centre, city centers, bulky
goods and neighbor centre.

ANALYSIS OF LITERATURE REVIEW
 Retail industry of Australia is regarded as the significant
contributor to the growth of economy of the country.
 Profits generated by the retail sector varies and compared to
smaller business, the larger retail sector businesses are
generally more profitable and they appear to enjoy a better
return on the cost of capital (Mordorintelligence.com 2019).
 The retail sector is facing some of the factors due to falling
housing prices, weak confidence of customers and
prevailing competition from overseas and online
competitors.

 The sustenance of retail sector in Australia is notices at a
reasonable rate of growth of sales in an unconventional
way (Pc.gov.au 2019).
 Increased spending by customers due to strong growth of
price of assets and massive windfall for one set of
customers

ANALYSIS AND ARGUMENTS:
 The level of productivity in the retail sector of Australia
is comparatively lower compared to retail sector of other
countries such as North America and Europe.
 The retail sales moving annual turnover in the country
has grown by a rate of 2.8% and the growth rate is
limited by economic growth and sub trend income.

 In September 2018, retail sales of Australia grew at 3.7%
year on year and the sector is segmented based on the
category of products, dynamics of market and
distribution channel (Deloitte.com 2019).
 The growth of retail sales in the country is experiencing
a downward trend.

KEY MARKET TRENDS OF THE RETAIL MARKET
 The retail landscape is being changed by rising
influx of foreign companies along with the
preferences of customers.
 A growth rate of 3%, 5% and 2.6% is registered in
Victoria, New South Wales and South Australia
respectively.
 The multiplicity of delivery platform and agility
would help in identifying non responsive retailers.

 There has been significant amount growth that has been
registered by the footwear and apparel market in Australia.
The Australian footwear and apparel market has been valued
at USD 20 million in the year 2018 and it has been
anticipated that it would register a CAGR of 3% per annum.
 In the year 2017, this channel has seen a rise in its share
values among the footwear and apparel categories. This has
been primarily been forced by the increased amount of
mobile penetration in Australia and with a huge amount of
shift towards the channel of online distribution.

COMPETITIVE LANSCAPE
 In the current time period, there are key players who
are dominating the sector in accordance to the share
of revenue. However, it has been noticed that minor
organizations comprising of the mid-size and small
organizations are concentrating on enhancing their
presence by making sure that new agreements and
entering in the new markets.

CONCLUSION:
The report has provided the trend of the market for
the past and the coming years to come and along
with that this provided an idea about how the retail
industries will construct their plans. This report has
therefore stated the actual condition of the market
and what actions can be taken with the help of which
the retail sector can develop within the year 2020.

REFERENCE LIST:
 Deloitte . (2019). Retail Forecasts March 2019: 2019 - Retail's gap year | Deloitte
Australia | Deloitte Access Economics. [online] Available at:
https://www2.deloitte.com/au/en/pages/media-releases/articles/retail-forecasts.html
[Accessed 28 Mar. 2019].
 F.datasrvr.com. (2019). [online] Available at:
https://f.datasrvr.com/fr1/418/76349/CW_Australia_Investment_2018_Report.pdf
[Accessed 28 Mar. 2019].
 Mordorintelligence.com. (2019). Australia retail sector - Growth, Trends and Forecast
(2019 - 2024). [online] Available at: https://www.mordorintelligence.com/industry-
reports/retail-industry-in-australia [Accessed 28 Mar. 2019].
 Pc.gov.au. (2019). [online] Available at:
https://www.pc.gov.au/inquiries/completed/retail-industry/report/retail-industry.pdf
[Accessed 28 Mar. 2019].