Factory outlets to grow in Australia

Citation

(2007), "Factory outlets to grow in Australia", Strategic Direction, Vol. 23 No. 10. https://doi.org/10.1108/sd.2007.05623jab.002

Factory outlets to grow in Australia

New development opportunities may inspire growth in the number of factory outlets in parts of Australia, a report published by the Sydney Morning Herald (www.smh.com.au) claims. Investors are showing strong interest in the sector, which hasn’t been the case before. It is believed that the number of factory retail outlets could rise substantially as sector leaders expand and new players emerge. In the next decade, this could see the market share of outlets selling clothing and soft goods rising from around 4 percent to 6 percent. The report however points out the importance of location. Evidence suggests that new developments would be ideal in New South Wales, particularly at airports, tourist destinations and existing retail sites with expansion potential. On the other hand, investors must be more cautious about developing outlet centers in areas where population growth may not reach anticipated levels, such as Western Australia and Queensland. Some analysts express fears about the possibility of oversupply and warn against developing in an area where traditional retail centers and competing factory outlets already exist.

Small better for flexibility

According to a report published by Clearlybusiness (www.clearlybusiness.co.uk), small firms in the UK are leading the way when it comes to the introduction of flexible working practices. Some companies are even going beyond the need to fulfill their legal responsibilities in respect of the issue. A survey of small UK businesses discovered that the common culture and shared values typical within such firms made it easier to implement the measures. The absence of a HR department often helped the introduction because it invariably means less bureaucracy. Participants in the survey, jointly carried out by the Chartered Institute of Personnel and Development (CIPD) and the British Chamber of Commerce (BCC), also indicated that cost did not provide a barrier to successful implementation. Being regarded as a responsible employer was cited as one of the main benefits to companies that permit flexible working.

The economy in Switzerland

Several leading financial institutions in Switzerland have upped their growth forecast for the country’s economy. Basel Economics (BAK) predicts that the economy will grow by 2.5 percent in 2007 instead of the 2.1 percent quoted previously. Similarly, the country’s largest bank, UBS, has upwardly revised its figures and now forecasts growth of 2.6 percent this year and 2.3 percent in 2008. The organization had earlier predicted growth of 1.9 percent and 2.1 percent respectively. Broad-based economic activity is cited as a major influence on growth, as is the degree of foreign trade. A report, as published by Swiss Info (www.swissinfo.org), notes that recent growth in sectors such as vehicle manufacturing, electronics, the leather industry, mining and timber is expected to continue and help trigger greater spending on equipment. UBS also points to the labor market upturn and believes this will result in more disposable income and higher levels of consumer confidence. In addition, the bank predicts that inflation will remain low over the medium term because of factors such as increased competition within the domestic market and the decision to allow companies to hire more EU citizens.

Africa set for cotton boom

A report published by All Africa (www.allafrica.com) claims that Africa is well poised to capitalize on surging worldwide demand for organic cotton. Annual growth of 100 percent in the global organic cotton market is helping to make cotton the largest non-food crop in the world. Analysts predict that the market for organic cotton will rise to $2.6 billion before 2009. Following a conference held in Cape Town, several major global brands pledged their commitment towards helping improve the role of Africa’s organic producers within this market. Non-profit trade organization, the Organic Exchange, believes that supporting production around the world will better enable the creation of new markets. Building strategic relations with leading retailers will help towards this aim through a joint commitment that can provide sustainable benefits for all involved. Small farmers, for example, can benefit from reduced fertilizer and pesticide costs, while also enjoying the impact on rotation crops like soy beans and peanuts.