Originally Posted by
percy
Go down to your local mall and ask any retailer what their sales are this year compared to last year over the last 3 or 4 weeks.Top retailer may be down 10% while others could be down over 30 to 40%.
retailers have huge leverage with on going liability of rents,usually set when turnover was a lot higher.With ratchett clauses no relief there.you will note a lot are having sales just to buy a months credit.In the book trade there is a huge problem with largest retailer trying to take supplier terms from 30 days to 60 days.Book publishers,and book trade very concerned.You will note Leemings trying to get themselves a months extra credit by offer 20% disc on all white wear.I just brought a pair of Rockford shoes{made just north of Auckland,in China] were $265. In the end I paid $ 89.90.Unemployment on the raise,electricity prices,food prices,GST, all increasing.Retail is not the place for an astute investor at present.