An interesting time to study retail. Few are making real money - despite the eye-watering gross margins, for example, between garment costs and selling prices. Labour costs are well contained via casualisation and a ready pool of unemployed. Rents are a nightmare as very low interest rates raise landholder incentives/imperatives to be fussy about tenants and demand onerous terms. I anticipate a big washout in retail RE as tenant/landholder conflicts are played out.
My sector picks are PGR and MYR. Both my positions are underwater but my radiant optimism persists.
Ash
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An interesting time to study retail. Few are making real money -...
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Currently unlisted public company.
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STRATEGIC ENERGY RESOURCES LIMITED
David DeTata, Managing Director
David DeTata
Managing Director
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