SOME of the largest publicly-listed retailers in Western Australia have been feeling the pinch during the recent economic turbulence, but preparations made early to deal with the downturn and positive signs about the future of retail in the state are keep
SOME of the largest publicly-listed retailers in Western Australia have been feeling the pinch during the recent economic turbulence, but preparations made early to deal with the downturn and positive signs about the future of retail in the state are keeping some traders smiling.
Woolworths Ltd currently has 81 supermarkets across WA, with approximately 15,000 employees, and is looking to expand on these numbers.
Although the company doesn't project store growth numbers for specific states, it told WA Business News of plans to add up to 25 new stores nationally in the next year.
Woolworths spokesperson Clare Buchanan said WA has been one of their gun states for a couple of years and believes its figures, with recently released first quarter sales of $12.8 billion (an increase of 9.6 per cent on last year), will continue to grow despite any possible downturn.
"We're not in the discretionary end of the market, we're in everyday staples," Ms Buchanan said.
"People still need to buy food, they need to shop for homewares through Big W and everybody still likes a drink."
The group has recently expanded its liquor operations in WA. Woolworths has opened a Dan Murphy's outlet in Albany and Balga and has just applied to the liquor licensing authority to open a store in Morley.
Woolworths believes that Australia is not in a recession and people are still spending at healthy levels, but the company's exposure to gambling and beer - the two so-called staples of an economy in recession- has helped secure its future prosperity.
"We've got strong liquor brands that are well managed and well positioned and certainly very well thought of by consumers," Ms Buchanan said.
While Woolworths is adamant that Australia is far from recession, or anything approaching that level, smaller listed retailers, such as furniture manufacturer and supplier, Furniture Holdings Ltd believes consumers are in a state of paralysis.
Furniture Holdings managing director, Julian Tertini is expanding his New South Wales-based company to WA to capitalise on one of the only healthy markets left in the country.
"Up until six to eight months ago, Australia was divided into two countries, basically it was Queensland and Western Australia and then there was the rest," Mr Tertini said.
"I reckon we should've opened three years ago, I hope we haven't missed the boat."
Mr Tertini said Woolworths' strategy of "petrol, booze and food" was brilliant especially considering he believes consumer sentiment is at its lowest point in 30 years.
"The consumer has been so spooked in this period of time, there's a degree of paralysis with consumers," he said.
"But life keeps going ... and there's only a certain (amount of) time they can defer certain purchases and we figure January, February will be really interesting to see how tight the purse strings are pulled and kept shut or not."
This positive attitude is echoed by another major retailer in WA, David Jones Limited.
David Jones group general manager of retail development, Antony Karp said despite problems associated with regulated trading hours and an outdated planning regime, he has a lot of faith in WA and its economy.
"We knew 12 months ago there would be significant declines and we made preparations for that so we're not surprised," Mr Karp said.
David Jones's immediate plans are to reinvest in its four current stores and longer term plans to open new stores at strategic locations along the northern and southern corridors, and is positive about the future in WA.