Australian retail sector rises to challenge by transforming business models

Direct-source retailing creates greater exposure to fluctuations in the AUD, increasing the need for offsetting strategic initiatives

ANZ today released industry research that found Australian retailers have responded to challenging headwinds by directly sourcing goods from overseas, resulting in price deflation across the sector, while margins have improved for best practise retailers.

“The migration to direct source retailing: Opportunities from a lower exchange rate”, found that although this transition to direct-sourcing is putting some retailers in a strong cost leadership position, it creates a new set of challenges should the Australian dollar depreciate below USD0.90c. 

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