Retail the weakest part of the economy, RBA warns

Original article by Eli Greenblat
The Australian – Page: 17 & 20 : 24-Jun-19

The Reserve Bank of Australia has released a report which highlights the tough trading environment for the retail sector. The central bank’s June bulletin notes that retailers’ profit margins are being hit by price competition, while profitability in the sector may be at risk if retailers seek to boost market share by selling products at a loss. The net margins of food retailers have fallen below five per cent, compared with more than seven per cent in 2009. There has also been a sharp decline in the net margins of non-food retailers over this period.

CORPORATES
RESERVE BANK OF AUSTRALIA, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, COSTCO WHOLESALE AUSTRALIA PTY LTD, ZARA, UNIQLO AUSTRALIA PTY LTD

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