Despite the higher cost of living, Australians are still shopping at high-end retailers in droves.D
👉 Background: Australia is undergoing the largest cost of living surge of the past 30 years. In fact, annual inflation is now growing faster than it has since 1990. And now, we know this has led to a number of Australian consumers seeking out value products.
👉 What happened: But despite the higher cost of living, Australians are still shopping at high-end retailers in droves:
👉 What else: Canada Goose, a luxury brand that competes with the likes of Moncler and Woolrich and whose jackets starts at $1,000 plus, is opening up shop in Australia... And this is just another sign of the two-speed economy in the country right now.
💡A 'two-speed economy' is when one part of an industry or business is growing at a much more rapid rate than others.
💡While many retailers are struggling to grow their business in the face of growing costs and less discretionary spending, others in the more 'premium' space are seeing their sales and profit accelerate.
💡The pattern of 'two-speed consumption" is creating clear winners and losers in the retail industry. This is why Canada goose is opening up new stores and why Target is starting to shut down some of theirs.
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