During a recent results webcast to investors,Woolworths chief executive Roy Bagattini was particularly positive about the prospects for Australian retail generally and consumer demand for discretionary sales.
He believes the billions of dollars that Australians stashed in their bank accounts during COVID has fortified consumers against rising interest rates and inflation and the impact this would normally have on retail spending.
He isn’t alone in his views. Myer boss John King was pretty upbeat when in July he provided a trading update for his department store chain. Not only is Myer staring down the barrel of 160 per cent improvement in second-half profit (to July) but he mentioned nothing about experiencing a slowdown.
Sure,there are indications from various economic data that there is some slowing in retail sales,but it still appears to be holding up quite well and seems nowhere near the edge of any cliff.