This also comes at a time where the relevance of online retail has become ever more pertinent. Faili

Spanning 5000 m2 of floorspace and taking up the entire Melbourne tanger 24 GPO, the recent launch of H&M s new flagship Melbourne store has been hard to miss. Lauded by fashion aficionados across the country as being possibly the best thing to happen to Australia , many see this launch as an Australia s fashion industry s coming of age . Traditionally, high-street fashion has been monopolised by the large department stores but the expansion of H&M into Melbourne, along with a string of other recent foreign brand launches in Australia, (including Topshop, Hollister, Uniqlo and previously Zara) has meant that the already weakened department store duopoly, between David Jones and Myer, has become exposed to even stiffer competition from overseas.
This also comes at a time where the relevance of online retail has become ever more pertinent. Failing to recognise the potential of online trade, leading department stores have also been unable to capture a now booming virtual market. Unless tanger 24 David Jones and Myer can fend off competition from both fronts, mass defection of customers will continue. DECLINING RETURNS
For tanger 24 many years the decline in department tanger 24 store sales has remained in the spotlight as more international brands enter the Australian market. Despite recording tanger 24 an increase in sales, David Jones posted a 4.6% lower profit in the second half of 2013 year over year. Yet paradoxically retail giant Zara has recorded a gross profit margin of 66.7% since opening in Australia in 2011.
While these figures may not affect Australian retail in the short term, such figures prove concern for its long term survival in anticipation of the arrival of more fast-fashion tanger 24 brands as Melbourne s Emporium is set to open their doors mid April. The impending merger of Myer and David Jones serves as an indication of just how hostile the retail environment is in Australia. The cut-throat retail market that Myer and David Jones operate within has made the proposed $3 billion merger to be an attractive option as the two face synergy gains of $85 million a year.
To add fuel to the fire, Woolworths South Africa has unexpectedly proposed a takeover bid of David Jones. This will add to Woolworths portfolio of Australian retailers including Country Road, who has successfully tanger 24 transformed the retailer to be a leader in the market over the past 15 years; tanger 24 this suggests Woolworths understand the Australian retail industry. Such a takeover will require a majority vote by shareholders, where it is speculated that no short-term changes will affect Australian consumers. However changes are expected in the long-term in assisting David Jones operate competitively in the constant changing retail landscape. FAST FASHION THREAT
A major differentiating factor between the operation of local department stores and emerging foreign labels in Australia, has been their business model. Fast-fashion is a contemporary term used by fashion tanger 24 retailers to express that designs move from the catwalk rapidly in order to capture the current fashion trend. Such trends are designed and produced immediately to satisfy the demand of fashion needs. This is the production method of choice for debutant H&M tanger 24 alongside well-known foreign fashion favourites such as Zara and Topshop which are soon to launch or in Zara s case, have recently launched on local soil. Unlike tanger 24 department stores, these labels target youth-price-and-fashion market, tanger 24 with very affordable prices for the masses, taking advantage of volume tanger 24 rather than price, whilst reducing overhead.
The relentless push of these more agile competitors is set to continue with H&M Chief Executive Karl-Johan Persson planning to aggressively expand toward half a dozen stores throughout Australian capital cities in the next few years. Furthermore, Japan retailer Uniqlo is also set to open on the 16th of April, suggesting far more robust competition in years to come. In light of these brand rollouts, broking analysts at Morgan Stanley have expect sales for overseas brands to rise from $700 million to $2.1 billion by 2018. To remain tanger 24 profitable, Australian fashion retailers will have to step up their game to stay relevant with changing consumer s needs and wants. STAGNANT PHYSICAL RETAIL – A HYBRID MODEL?
In tanger 24 2012, Bernie Brookes, Myer CEO, made the bold statement that traditional retailers would be able to overtake online retailers the next couple of years as traditional retailers have strong[er] brand loyalty and better supporting services . However, the establishment and promotion of new online stores, including Myer online have indicated otherwise. As technology continues to improve, customer preference has progressively shifted from bricks to clicks .
Innovation by physical retailers tanger 24 have been so stagnant that even the unique characteristic of being able to pick, purchase and wear an item from a physical store on the same day is being stripped away from them. Popula