Being someone who deals directly in this market segment and have done so for the last 12 years, I would not be dumping too much money into retail stocks such as Clive Peeters.
This market is heavily competitive and the days of profit (GP) on floor is all but gone. I speak to retailers on a daily basis in my current job and the outlook is not so pretty. Especially if the government increases the Interest Rate on Tuesday. This area of the market will be even slower.
This sector of the market has been the quietest that I have seen it for the last 10 years. Normally in February/March. The White Goods area (Which incorporates Cooking Appliances, Fridges etc) starts to pick up and goes on an upwards movement and than slows in Dec/Jan when Xmas/Trades shut down for their holidays until the end of Jan.
Not so with this market as it stands. One store that I deal with, which is one of the top 5 stores in its chain in Australia. Had its quietest February ever! So if your investing in this field, just be willing to either get out when the price spikes or be willing to wait years to make great money out of it (plus expect some sidewards movement). There is so much better money elsewhere to be made in segments that are less competitve and less factored on Interest Rates etc
Good Luck to all! I wish you well. Just food for thought
CPR Price at posting:
28.5¢ Sentiment: None Disclosure: Not Held
