Retravision next to go?

tatasauce on 18/05/2012 - 10:28
Last edited 18/05/2012 - 10:51 by 1 other user

http://www.theage.com.au/business/administration-fears-for-r…

Mod: Quoted from the article:

Profits fell 8.1 per cent in 2011 to $357,000 on sales of $340 million. Australia's retailers have come under strain from price deflation resulting from the strong dollar in recent years. Also the ability for customers to compare prices online has altered the competitive playing field, putting pressure on traditional business models.

Retravision Northern and Western, operating separately, are unaffected by the problems at Retravision Southern. Retravision Western chief Paul Holt said the divisions continue to "trade strongly".

Related Stores

Retravision

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  retiredfeline on 18/05/2012 - 10:39

  Not everything can be blamed on the high AUD. There are a lot of local small e-tailers who are doing fine. The problem with old dinosaurs is that they are lumbered with bricks and mortar shops to maintain but the nimble online shops are not.

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  [Deactivated] on 18/05/2012 - 11:33

  I thought that Retravison stores were independently owned, its just a marketing/franchise operation that has reported it's profits. And given other chains are actually losing money a 8.1% drop in profits (note after all expenses) then they are doing ok.

  The sales figure in this case would be a bit misleading as its not direct sales, ie they havent as a marketing group the exposure in terms of rents etc like Myer or DJ's have.

  So maybe wrong, but it wouldn't indicate major issues here

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    Typical16-bitEnjoyer on 18/05/2012 - 13:04

    No, it also handles all finances, purchasing, wages and bookwork

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  Typical16-bitEnjoyer on 18/05/2012 - 13:00

  Retra is definitely not in a good way. They are hanging on but I predict them calling in voluntary administrators within 18 months.

  Stores are mostly privately owned, so a lot of 'owners' that paid off their McMansions in the 90s from selling TVs, ovens and stereos will be up for a rude shock.

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  ironworthy on 18/05/2012 - 17:23

  +3

  shit, better use my good guys gift cards. Australian retail is too unstable

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  Cheeper on 20/05/2012 - 00:15

  Flat panel tvs kept a lot of retailers in the black for a long time but with the market now saturated and low prices the profit magin has gone there.

  Add to that the number of online appliance retailers doing big business and the bricks and mortar appliance retailer is looking at hard times.

  I expect that HN and JB would be feeling the pinch as well.

  A new "must have" appliance is whats needed but there is none on the horizon.

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    Typical16-bitEnjoyer on 21/05/2012 - 21:46

    HN is the exception to the rule. Its franchise models generates huge amount of income. Just look at its annual report. Its the franchisee's suffering currently, not HN.