Think that major chains and department stores are blitzing smaller, specialty retailers on all fronts? Think again.
Tax advisory firm BDO has released its 'Spend Trend' report, which examines trends within the Australian retail industry and their impact on retailers.
The report examined that 18 ASX listed retailers and found that while turnover and margins remained fairly flat, expenses were soaring as a percentage of sales.
This has resulted in a drop in net-profit margins of 70 per cent over the past three years.
However, it also found that smaller retailers appeared to be leading the mobile-site marketplace race.
In comparison to leading department stores, the smaller retailers' mobile site offerings were found to be superior.
Specialty fashion retailers still fought a tougher game when compared to supermarket giants such as Wesfarmers and Woolworths however, due to the discretionary nature of their business.
Fashion items could also be easily sourced through a number of overseas websites at a significant discount.
Other factors contributing to the 70 per cent decline in net profit margins for listed specialty retailers included; the slowing of the economy, the impact of asset write-downs, rising salary costs, rental and marketing expenses.
BDO research found Australian household spending was increasing despite the difficult economic environment, suggesting consumers were spending their money overseas.