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Holiday US retail sales stall

Much to the concern of US financial markets, the holiday sales were a big disappointment with consumers not spending as much as was hoped over the holiday period. In fact, the sales this year grew at the slowest pace since the country was in a recession which was 2008.

There are many reasons for Americans not spending but one of the main ones is the usual suspect which is economic uncertainty.

The country is approaching the deadline for the so called fiscal cliff which means that if a solution is not found then there will be massive budget cuts across all government departments and taxes will rise for a majority of Americans.

With a solution or agreement yet to be found, consumers are wary of splashing out incase they are faced with higher taxes in the coming year.

Retail sales this year grew 3 to 4 percent however last year it was 4 or 5 percent.

Australian retailers are also doing it though however the biggest threat to them is the online surge. Stores like Styletread are capturing consumers dollars by offering great prices, excellent conditions and an attractive Styletread coupon.

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The Iconic attracting attention from the big players

Online fashion retailer, TheIconic.com.au is only a year old but has attracted some big attention including an investment by JP Morgan of $19 million dollars.

The retailer bases itself in Sydney and has seen a meteoric rise in success over the past year due to a brilliant business model and marketing efforts. The company is described by it’s owners as a destination for fashion and footwear. They attribute much of their success to the goal of providing top notch customer service, free shipping and returns and often making available a The Iconic coupon code. The company was founded by Finn Haensel, Ryan Tuohy, Andreas Otto, Cameron Votan and Adam Jacobs, a bunch of guys that were working together at a consulting company called McKinsey and Boston.

The company started when a German based company called Rocket Internet, engaged them to start up The Iconic.

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Queensland lagging on the technology front

Queensland has long labeled itself as the smart state however this is proving to not be the case when it actually comes to hard evidence.

Deloitte Technology’s list of the top 50 fast growing technology risers had only three Queensland based companies. This figure has been decreasing over the last 5 years and does not look like rising anytime soon.

The closest company to come in the Top 10 is the online surf retailer, SurfStitch. The company is owned by Lex Pederson and Justin Cameron and they came in 10th position. The company has performed astronomically over the past 12 months, growing 252 per cent. The company has achieved great sales due to a brilliant online business model and by often providing a SurfStitch coupon to lure the consumer. The company’s success has attracted the attention of Billabong, who purchase a minority stake in the business.

The goal for the state should be to push the Technology agenda further this year and try to regain some lost ground. If not, the status of the smart state is highly questionable.