@molly4 - as a proportion of costs, merchandise will now be larger. This should mean that the differential between in-store and online should be lowered.
E.G. (These figures are nowhere near accurate, but convey the message:
Dollar @ parity:
Pair of shoes: $50USD = $50 AUD
Cost to sell and store: $10AUD
Rent: $10AUD
Merchandise cost/total = 50/70 = 71.43% of price
Dollar @ 50c
Pair of shoes: $50USD = $100AUD
Cost to sell and store = $10AUD
Rent: $10AUD
Merchandise cost/total = 100/120 = 83.3% of price
This means that online only cuts out ~17% of costs, as opposed to the potential 28.5% of costs with a higher dollar.
It you look back a couple of years when a lot of the retail industry was crying poor, it was exactly when the AUD/USD had risen substantially.
Just a theory of course... and potentially means rising consumer costs, so they may spend less.
Ann: FY2014 Results Press Release, page-6
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