August 14 2016
    Sydney Morning Herald

Construction, professional services, retail sectors most vulnerable to collapse   :(




There are too many marginal retailers out there, according to Michael Carrafa, the executive director of insolvency firm SV Partners. "Everyone has a dream," he said of the sector's enduring appeal despite its thin margins.

Dreamin' retailers are on borrowed time.

SV Partners has warned that a large supermarket or grocer, two computer retail giants, a large clothing retailer, and a big newspaper/book retailer are at "high risk of financial failure" this financial year.   :(

SV Partners has come up with a scorecard for Australian companies, big and small, on their likelihood of collapse. It reached these conclusions by analysing numbers up to five years old ranging from the trade payment history of each entity to filings with the corporate regulator and Bureau of Statistics data.

Its Commercial Risk Outlook Report found that more than 1200 retailers in Australia were in "financial distress" as consumer spending sputters. Just over 900 retail companies collapsed in the 12 months to March 30, 2016, up 6.7 per cent year on year.

Mr Carrafa said despite record low interest rates, there was not much cash floating around. 


"A lot of people have absorbed whatever remaining equity they have in their homes," he said. "They're leveraged to the hilt and there's no ability to fund working capital." The banks are reluctant to lend money, he said.   :(

The SV Partners report found that among retailers, clothing retailers and supermarket grocery stores were the most vulnerable.

Retail is the third sector most at risk of financial failure, behind construction and professional, scientific and technical services, the report says.

Of the 959 retailers identified as being the highest risk of financial troubles in the next 12 months, seven of them have turnover of more than $100 million.

One business – in computer retailing – has turnover of $1 billion or more, according to SV Partners. Another business – supermarkets/grocery – has turnover of between $500 million and $1 billion.

But the vast bulk of at-risk businesses – 807 out of 959 – are small businesses, with turnover of less than $1 million.

Separately, a report by business body Ai Group has found that the "lower Australian dollar and Australian businesses' active responses to it have played a significant role in the improvement of business conditions and optimism in 2015 and 2016 compared to earlier years".

"The lower dollar is helping the Australian economy transition away from the heavy emphasis on mining and energy-related investment towards a pattern of growth that is spread more evenly across sectors, geographies and markets."


   

All successful businesses must have a rational paranoia about failure.
if you dont seek to improve , improve , improve...you will go the way of the Blackberry and the beta VHS.

All successful workers , similarly need to have a rational paranoia about failure.
If you think you can just lock down some job for life and then enter Durr state bliss, think again.
I watch those Micheal Moore movies where some auto workers lose their jobs when the plant closes down and then they start crying and look all sad.
To me, it just looks retarded. i feel those people are retards.

the narrow road to success is not so much a road or a ladder but a slippery muddy slope. Rest on your laurels for even a day and you start slipping back down.

lazy scrubs dont want to hear this.
To the lazy scrubs, i just say, if you dont think you need to bring value to every hour you put in at work,

you are

naive  ;) ;)

Here's a challenge: go into some of the major general retailers and see if you can find a sales assistant.

True story: I went into DJs at Parramatta and asked if a particular colour of a Polo Ralph Lauren jumper would be coming into the store for winter. The sales assistant said she didn't know because the buyer didn't communicate with the floor staff. I ended up ordering the jumper I wanted online. It cost extra bucks and had to come from the UK but I got what I wanted.

And you call them RETAILERS. More like clueless organisations in by book.

I expect this is mainly referring to family businesses.

If they have any large listed companies in mind, why don't they do the investing public a favour and name them.
Or are they trolling for business themselves.

Did they publish a list?

Link please

SV Partners has warned that a large supermarket or grocer,


gosh ALDI must be thrilled.

Well said Cods, what a wonderful supermarket Aldi is.   :)

cods wrote on Aug 15^th, 2016 at 8:55am:

gosh ALDI must be thrilled.

A free market/competition isn't a good thing?

Coles and Woolworths need to lower their prices and stop screwing our farmers.

Masters also was an epic failure for woolworths.

I wouldn't be surprised if they are having issues.

The computer retailer may be Jb Hifi?

21st Century Dialup Network wrote on Aug 15^th, 2016 at 2:09pm:

The computer retailer may be Jb Hifi?

"JB Hi-Fi shares soar to record high, as the retailer profits from the Dick Smith debacle".

Markets Live: JB Hi-Fi at record high

21st Century Dialup Network wrote on Aug 15^th, 2016 at 2:09pm:

cods wrote on Aug 15th, 2016 at 8:55am: gosh ALDI must be thrilled. A free market/competition isn't a good thing? Coles and Woolworths need to lower their prices and stop screwing our farmers. Masters also was an epic failure for woolworths. I wouldn't be surprised if they are having issues. The computer retailer may be Jb Hifi?

you can tell how gleeful crook is... he loves watching aussie business go down the drain....

I dont blame the retailers.. I blame the customers....if people are stooopid enough to buy something that is twice the price in another outlet then why blame the retailer..

I dont use Aldi hardly go in the shops anymore....my shop the staff were always changing.. they looked harried head down bum up...I think Aldi burn them out...and like I dont buy caged hens eggs... I dont like seeing staff..working full belt their check out people never chat to anyone...its go go go... as if if they stop they are in trouble....I dont like that....they probably have a big brother camera in every store...dont talk about service at ALdi there is none.