We all know the classic scene from Jerry Maguire when Jerry (Tom Cruise) begs Rod Tidwell (Cuba Gooding Jr) in a football stadium change-room to “help me, help you……heeelllllp me, help you” in finding Tidwell that elusive major football contract.
This expression comes to mind every time I walk out of a retailer at the moment, an industry from whom in recent times, we have heard nothing but whinging, whining, pleading and begging of their customers throughout Australia to return to the store rather than shop around for the cheapest online deal.
Having saved my hard earned pennies and recently embarked on some post-Christmas sale shopping, I am convinced that the Australian Government should ignore any further pleading from retailers to remove the GST exemption on overseas imports below $1,000. That is until retailers can prove (a) they actually want to run a business involving a physical store selling items, goods or chattels; and (b) to serve the customer.
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As the Aussie dollar has surged in recent months it’s clear that those buying online from overseas websites are enjoying amazing savings as compared to buying locally from bricks and mortar retailers.
In fact, online retailing is growing at a rapid pace and will continue to do so as long as the Aussie dollar remains strong. But it isn’t just the strong Aussie dollar that’s driving the rush to overseas online retailers.
The harsh reality is that a key reason Australian bricks and mortar retailers are finding it harder and harder to compete with online retailers is that retail rents in Australia continue to rise. Australian retail rents are some of the highest in the world and that’s bad news for local retailers operating out of a major shopping centre.
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