We all know that there has been a shift in consumer preferences in the US to Walmart, Dollar Tree and other non-discretionary retailers.
A movement in consumer preferences here would bode well also for CER. Big W who is mentioned a few times in the article contributed 3.4% of Australian ABR as at 31 Dec 08.
If you look at CER's top 10 Aust retailers as at 31 Dec 08, they are mostly non-discretionary.
Top 10 is as follows:
Woolworths/Safeway - ABR 7.4% Coles - 4.3% Big W - 3.4% kmart - 3.3% Target 2.6% Myer - 1.3% Reject Shop - 1% best and Less - 0.9% David Jones - 0.8% Millers - 0.8%
Total ABR for top 10 - 25.8%
Only Myer and David Jones, you could say are not non-discretionary in nature.
Kmart has also not been performing as well as Target and BigW.
The Aust portfolio should continue to thrive in the forseeable future
Cheers
CER Price at posting:
8.6¢ Sentiment: Buy Disclosure: Held
