Niche Shops Booming

In these highly volatile times, part of the retail market is taking a hit. Shops that are deemed as specialty stores are sailing ahead compared to other shops. 

There has been a number of casualties wherein some had to let go of their staff or worse, close shop. 

Paul Bloxham, the chief economist at HSBC Australia and New Zealand, in an interview said that there is an increase in the retail values from 0.8 percent in May to 1 per cent in June. 

On a 10-year average, the annual retail values rose to 5.1 percent. Volumes increased by 1.4 percent in the second quarter as well. 

Looking at the numbers on a year-to-year basis, the volumes are up by 3.9 percent. 

However, even with the good numbers, the reality is some of the businesses are facing problems. 

In fact, Darrell Lea confectionery asked help from the government and will be closing half of its stores. Fashion retailer, Witchery Group was also offered $172-million by its close competitor, Country Road. 

Bloxham reported that the second quarter has been good and retail spending and trade balance is in an upswing. There is actually a surplus in June albeit small. 

CommSec’s chief economist Craig James said that the results in the quarter are actually more than what was expected. And looking at the retail activity across the country shows that there is much going on.

Highly specialized shops like bakeshops, butcheries, and coffee shops are coming out of the woodwork and are actually making good money.