Foreign retailers attracted to Australia

From: AAP
September 12, 2011 1:14PM

AUSTRALIA is expected to remain an attractive country for international retailers after some major Australian retailers recently bucked the gloomy trend, new research shows.
Despite negativity in the retail sector, Harvey Norman, Woolworths, Wesfarmers and JB Hi-fi all reported higher profits in 2010-11.
This financial year, IBISWorld analysts expect Australia’s retail spending to be 3 per cent higher than last year, while interest rates and unemployment remain low and disposable incomes increase.

“This will make Australia an attractive location for international brands, with both Costco and IKEA planning further stores and UK mega fashion store Topshop opening its first Australian outlet by 2012,” IBISWorld general manager Karen Dobie said.
She expects conditions to improve for retailers in the coming 12 months.
All of the retail segments are predicted to experience growth on the back of a steadier Australian dollar, which has kept the price of imported goods low.
While several book and clothing store chains have recently closed their doors, some successful brands such as Spanish retailer Zara have experienced strong trading since opening earlier this year.

American giant Costco earned $166.4 million from one store in its first year of operation, while Bunnings is expanding its store numbers.
And Woolworths has entered the hardware market, with the planned opening of 15 Masters stores within the year.
Electrical retailers experienced almost a 2 per cent fall in profit growth in fiscal 2011, but that is predicted to bounce back to 1.5 per cent growth in 2011/12.
All other retail categories, including food and liquor, department stores, clothing retailers, hardware stores and book stores are expected to remain in positive territory this financial year.