Retail space growth still too fast
In their quarterly update, Citi Research observed that over the next three years the expansion of Australian retail space will exceed population growth. According to Citi, online sales are expected to grow at 10%, although we question this prediction. Statistics about smartphones and social media penetration as well as the usage of social media indicate that we are entering a plateau phase. Therefore, we expect online sales growth to slow down. Citi commented that retailers have become reluctant to open new stores, but successful retailers don’t seem to have such concerns.