[mattau]

Over the past few weeks, particularly during the retail woes over Christmas, it seems that tradtional business models of Aussie retail are under attack from the new online shopping trends. It seems Myer and David Jones, huge retail chains in Australia are finally recognizing the challenge posed to them by e-tailers.

Thoughts?

[wulfgar]

I suspect over the years that the expansion or big retail space has a lot to do with speculation on the capital value of property than the actual income earned. Much the same as our investment housing. If property values don't rise then commercial property investment sides to a halt. For example in the great half century of little increase in property values in Aus post 1890 crash......bugger all was built.
This is mal-investment, vast amounts of investment created and no where to shove it, so any hair brained scheme will do.

Aus has over 1 million directly employed in the building industry, as it slows down these people don't do anything else. The governments stab at building make not be politically as foolish as it looks.

I remember a Mall film cinema built in the late 1990's.......10 years later they closed it down. So what was the worthiness of that investment?