Bottom line boost at drought's frontline

Retail services provider Frontline Stores has launched a financial services operation that will provide assistance to small regional fashion retailers damaged by drought.
Frontline Stores - which is based in Melbourne and services 735 textile clothing and footwear retailers nationally - has negotiated a group discount with Melbourne-based national financial services company Lachlan Wealth Management.
Frontline general manager marketing and retail services Ray Halliwell claimed the partnership would allow retailers to access discount rate advice on a range of issues including investment, loans and retirement planning.
The service would particularly target regional retailers - around 80 per cent of Frontline members - many of whom were struggling to stay in business as the rural economy succumbed to drought-induced slowdown, he claimed.
"The drought is devastating regional retailers, as farmers are unable to grow crops and are therefore losing money. Retailers are really feeling the pinch because trading is significantly down, particularly in the clothing, footwear and Manchester categories," he said.
"When things get particularly difficult, Frontline can offer a range of services designed to maintain the bottom line and improve margins."
Frontline's financial services arrangement with Lachlan Wealth Management is the latest in a suite of benefits offered by the services provider.
It also has discount agreements with suppliers across a broad range of service categories including EFTPOS (electronic funds transfer at point of sale) technology, insurance, freight and transport, packaging and ticketing.
Halliwell said the drought had created an additional challenge for smaller regional retailers already struggling against the buying power of major retailers.
"A lot of the major department stores in regional areas are going on sale and smaller retailers are struggling to maintain their price points without being forced to go on sale themselves," he explained.
"It is very important for smaller retailers to maintain an image of value for money, at the same time as competing with the perception that major stores are frequently on sale."