Online retailing is set to account for between 7 and 8 percent of all retail sales in Australia, up from 2-3 percent currently, says accounting firm Ferrier Hodgson.<\/p>\n
James Stewart, a partner at the accounting company, said the British and US retail markets had already reached the 7-8 per cent threshold, and Australia was likely to catch up. “We have a slightly different issue in terms of density of population,” Mr Stewart told the ABC TV’s Inside Business program.<\/p>\n
“Our freight costs are proportionately higher for a lot of retailers, whereas in the UK and US market they can spread those freight costs across a more dense population base.<\/p>\n
“But I think we’ll get there; we’re early adopters of technology, we’re early adopters of internet activities and things like that, and that’s where we’ll go.”<\/p>\n
Mr Stewart said the tough retail environment was partly explained by a growing shift to online shopping, which reduced spending in stores.<\/p>\n
Overseas web sites could end up being 5 percent of total sales claims a CitiGroup analyst.<\/p>\n
Retail giants, including Harvey Norman and Myer, Target and David Jones, are currently lobbying the federal government to close a loophole that allows online shoppers to buy overseas merchandise free of tax, provided it costs less than $1000.<\/p>\n
The companies have argued it is unfair that they have to pay GST and import duties of up to 20 per cent when foreign retailers are exempt.<\/p>\n
<\/p>\n
But I think there are greater factors at play — there’s no doubt there’s the GFC impact,” he said.<\/p>\n
“Economically, people are feeling very different. When you see interest rates go up, when you see the cost of living going up, that affects your bread and milk money.<\/p>\n
“And then compare it to online; people are starting to research more about what they’re going to buy, particularly when it comes to discretionary items.”<\/p>\n
Most retailers had a “pretty tough” Christmas, with a lot going on sale early in the season. This had left them with “nowhere to go” in the traditional January sale period.<\/p>\n","protected":false},"excerpt":{"rendered":"
Online retailing is set to account for between 7 and 8 percent of all retail sales in Australia, up from 2-3 percent currently, says accounting firm Ferrier Hodgson.<\/p>\n","protected":false},"author":42,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[28,671],"tags":[],"class_list":["post-84235","post","type-post","status-publish","format-gallery","hentry","category-archive","category-ebusiness","post_format-post-format-gallery"],"yoast_head":"\n