Aust. Retailing Near Recession

Press, Volume CV, Issue 31003, 8 March 1966, Page 20

Aust. Retailing Near Recession

Australian retailing is almost facing a recession at the moment because people are short of money, says the chairman and managing director of G. J. Coles (Sir Edgar Coles).

Speaking in Sydney, he said that G. J. Coles’ trading in January and February was lower than for the same months of 1965 the first downward trend for 15 years. Trading had fallen off in New South Wales slightly more than in Victoria, but the trend was Australianwide, and did not apply' only to drought-affected areas. “Decimal currency has not caused the downturn, but it has contributed to buyers’ hesitancy.” In line with its trading licence, the company’s expansion programme was being restricted. The plan to have one hundred supermarkets operating within the next year would not be met, and the figure would be close to sity, he said. This was because of the fall-off in internal funds because of the reverse in trading.

Finance was harder to obtain, and it would be hard to increase the return on capital over the next two years, he said. After tw'o years the company’s cash flow would improve. Results of the company’s newest supermarket, at Lane Cove, were “only fair.” Sir Edgar Coles said that there was a trend in the United States for supermarkets not to go into regional shopping centres.