What's Selling In: Thirroul, NSW

Elisabeth Dignam is not lost for words when it comes to the current retail climate in Thirroul. "Shocking. I'm pulling in half of what I was two years ago." The owner of footwear store Sole Obsession says interest rate hikes, soaring petrol prices and the rising cost of living has seen her business experience its toughest trading period in over six years.

"It's dropped off even more in the last few months - I've thought about leaving but I've got $250,000 stock sitting out back. It's not been an easy year."

Sole obsession stocks a wide variety of women's shoes including Swimming With Sharks and Django & Juliette. However, Dignam says even competitive price points ranging between $20 to $250 have failed to bolster its bottom line.

"I'm hoping that a bit of fresh blood will inject new life into the store - I've already employed some young people to come in here and give it a go."

Nearby womenswear boutique Liiluu has had it a little easier. Co-founder Yvonne Highland, who launched the store with Jodi Trevor ten years ago, says competition has always been fierce in Thirroul because it is a small seaside town.

"And because of that, we try and cater for everybody," she explains. "You can't survive if you target all the little pockets, you have to be able to serve anyone from 18 to 60."

The store stocks a broad range of trend-driven brands such as Sunny Girl, Sass, Fate and N.C.C with price points generally ranging between $35 to $50. Trevor, who heads up the buying department, aims to source clothing that's suited to a "mother and daughter" shopping team. "Something that's fashionable, good quality and within a very specific price range."

Highland says heavy winter stock has not had a strong sell through this season but layered items, such as tops and cardigans, have performed well. The store's loyalty program keeps locals coming back for more. "We introduced it about three to four years ago and it's gone so well, we don't feel the need to do advertising or any other marketing [campaigns]."

The loyalty program allows customers to claim $20 off their purchase once they spend $250 at the store. It's an essential selling tool because neither Trevor or Highland believe in staging regular sales. "It's very competitive in Thirroul and a lot of boutiques here tend to be sales driven," Highland says. "Jodhi buys stock quite regularly so what we do have goes very quickly. We don't have enough stock to stage something like an 'End of Winter' sale."

Location:70km from Sydney  
Population: 5,594
Stores:Sole Obsession, Liiluu
Brands:Sass, Sunny Girl, Fate, N.C.C, Swimming With Sharks, Django & Juliette.

By Assia Benmedjdoub