Retail Markups and Online Sales

[soj]

Another great article which will get more people spending money online.

http://www.theage.com.au/business/r...r-threat-from-online-20110524-1f1g7.html#poll

 

[paz]

I know in the AU fishing tackle industry the mark up is about 90%

In America they have greater buying power so they buy cheaper and the fishing tackle stores mark up about 35%.

So the retailers whinge that everyone is buying online - but they are marking up almost 3x as much as their U.S counterparts.

I guess the argument is they have a large enough population to support this.

Brick and mortar retail in Australia is really struggling at the moment - the only answer will be to cut costs right down.

 

[Chris.C]

Brick and mortar retail in Australia is really struggling at the moment - the only answer will be to cut costs right down.

They are caught in the creative destruction cycle.

They need to innovate their businesses (ie move online, lean up their operations and fast) otherwise they will be destroyed.

 

[snoopy]

"Turns out consumers reckon a 35 per cent mark-up by the shop would be fair in order to make a profit"

Consumers will be fine with that up until the point where their boss walks in to tell them their hourly rate needs to go $15 per hour to $7 per hour because of the new pricing structure.