Bargain hunters are blamed for harming the economy because the reserve bank warns that too many companies are going bankrupt to lure customers with discounts
- & # 39; Price sensitive & # 39; customers force Australian retailers to lower their prices
- Companies now feel the hustle and bustle after being forced to satisfy customers
- Retailers are now competing with the rise and popularity of online businesses
Stingy customers who ask for discounts have been blamed for retailers breaking and damaging the economy.
Australian companies have been pressured to drastically lower their prices to meet consumer demand to stay in the cut-throat retail sector.
But now retailers feel generous after being forced to lower prices to & # 39; price sensitive & # 39; to satisfy buyers, the Reserve Bank of Australia has warned.
Nasty customers have been blamed for harming the economy by forcing companies to close their stores because they are increasingly demanding discounts
& # 39; Companies suggest that retail consumers are becoming more price sensitive & # 39 ;, Matthew Carter wrote in the new competition and profit margins in the retail sector report.
& # 39; They had to adjust their pricing behavior, usually due to the size or the & # 39; increase the depth of discounts on their products.
& # 39; Store goods, such as furniture, food, clothing, and footwear, make up about one third of the Australian consumer price index. & # 39;
Retail companies have had to compete with online giants such as Amazon and Kogan.
Part of the problem is that retailers who attract customers and increase their reach through heavy discounts are seen as market leaders.
In turn, other retailers are forced to follow them by searching for the & # 39; lowest price position & # 39; – further reducing profit margins to satisfy economical customers.
Australian companies have been pressured to drastically lower their prices to meet consumer demand to maintain a competitive advantage in the retail trade
& # 39; This increase in retailers' discount behavior was one of the factors that contributed to the low inflation outcomes in the Australian economy in recent years, & # 39; wrote Mr. Carter.
At the end of 2018, the menswear business Roger David started voluntarily after saying that the company could not compete with international and online retailers.
Because bargain hunters remain adamant by spending less, companies are forced to stop and slow the economy.
The $ 320 billion retail sector is the second largest employer in Australia.
But now retailers feel crowded after being forced to lower prices to & # 39; price sensitive & # 39; to satisfy buyers, the Reserve Bank of Australia has warned
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