Department stores face uncertain future as sales seen shrinking over coming years

 In Australia, BigW, Myer, NewZealand, Target
Australia’s department store industry is facing the prospect of shrinking revenue in real terms over the next five years as it battles turbo-charged competition from online and offshore retailers combined with continued weak consumer sentiment.
It is an outcome for the industry that is clearly not sustainable and ultimately should prompt a major reshaping of the marketplace and questions about whether there needs to be a cull in the number of stores.
Two of Australia’s major department store chains, Target and Big W, have sustained either poor profits or losses over the past five years, and their owners have issued no timeframes for a recovery. There is intense pressure on their parent companies, Wesfarmers and Woolworths respectively, to undertake some radical surgery on those brands even though they have already undergone a series of restructurings and management overhauls. Sydney Morning Herald – Read more…

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