Retail Industry Gets Boost from Compensation Packages

Retail stocks got a boost in their quarter sales, thanks to the implementation of the new compensation packages for families. These retail stocks include Woolworths, Harvey Norman, David Jones, Myer and Coles.

The new government scheme was implemented to help families when the carbon tax law takes full effect. But as it turns out, even the retail industry has benefitted from this.

Woolworths, however, was quick to downplay the effect of the new scheme. The company said the increased sales may also be attributed to other factors, other than the compensation package.

But analysts say that it was hard to ignore the fact that its other commercial establishments, like hotels and liquor businesses, also had a steady increase.

Even online retail sales increased, with many shops recovering its operations for the last quarter.

The price index was up to 189 from 187 for June and overall, online spending apparently grew by 19 percent in the last few months. This growth, however, is still unable to match last year’s figure at 32 percent.

Analysts are now keen on what the next development would be, especially when compensation packages will basically run out in a few months.

The last year and a half saw a decline of consumer spending, affecting many retail stores and online sites.