Industry Analysis & Industry Trends
Computer and software retailers have faced challenging trading conditions over the past five years. Widespread economic uncertainty due to instability in global markets led to volatility in consumer sentiment. This prompted consumers to become more cautious with their discretionary spending over the early part of the five years through 2016-17. Many industry operators engaged in aggressive price discounting due to the rapidly increasing popularity of online shopping. The resulting downward pressure on prices eroded profit margins and ultimately led to the exit of industry players. Industry revenue recovered over the second half of the five years through 2016-17, driven by an upturn in discretionary income and rising demand for the latest tech products such as tablets... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits low capital intensity. For every dollar spent on capital, $13.13 is spent on wages. While capital investment is required to operate in the industry, labour is required to undertake numerous tasks, including restocking display shelves, processing consumer purchases and assisting with inventory management.
Capital expenditure for the industry has remained steady over the past five years. The use of computerised point of sale (POS) systems has simplified staff tasks and minimised the incidence of human error. POS systems have also allowed operators to control inventory more efficiently and reduce excess stock. Nevertheless, the industry remains labour-intensive, with staff required to perform a range of duties... purchase to read more