MikeWeathier consumers can be particularly price conscious IMO...

Mike

Weathier consumers can be particularly price conscious IMO when it comes to purchasing standardised consumer goods. Why pay 20-30% more for cosmetics when you can purchase the identical product/brand over the net.

Also skincare/cosmetics and even perfume to a lessor extent is generally a repetitive purchase item. Once a particular brand is liked and performs to the consumers satisfaction they tend to stay with the product. The purchase decision is then reduced to a mere pricing mechanism.

I feel David Jones and Myer will continue to suffer erosion of volume and margins in these retail segments, which will make it harder for them to fight increasing competition in homeware, and clothing.