Remarkable recovery: Australia’s retail sector expected to post best earnings ever
In a remarkable recovery from the pandemic, Australia’s retail sector is expected to report its best ever earnings in the profit season beginning next week.
Citi forecasts market earnings per share growth of 20 per cent in 2020-21.
There was a 15.8 per cent contraction in 2019-20.
CEO of the Australian Retailers Association, Paul Zahra, says it’s an impressive bounce back.
“The latest ABS data from December posted a 9.4 per cent increase, which is phenomenal,” he told Ross and Russel.
But some industries are doing much better than others.
“The winners clearly have been anything to do with the home, as we’ve had to work, play and stay at home. That’s been anything from hardware right through to pets,” Mr Zahra said.
“Restaurants, cafes, hospitality, but in CBD locations especially, have done it particularly tough, or if you’re a business that relies heavily on international tourism, so think duty free particularly.
“Or, if your strategy, take a department store, is to have flagship locations in CBD spots … you’d be under great pain.”
Press PLAY below for more.