SYDNEY, Australia -- The Australian dollar seems to be weakening against the greenback without any sign of slowing down. While this is good news for many exporting industries as well as domestic travel industries, many retail sectors that rely on imported goods are hit hard by the rising costs due to the weakening Australian dollar.

After the Australian dollar broke the parity line against the US dollar back in May 2013, it remained in the mid 90s until September last year when the dollar saw a big downward movement. The Australian dollar has continued to lose strength against the greenback since then. Some of the contributing factors are attributed to the strengthening US dollar, weakening natural resource prices, the rising unemployment rate and government discontent.

Tile retailers are among many others that have been left with few choices but to increase prices in this climate. While there are some local tile manufacturers, the majority of tile retail businesses rely heavily on foreign imports from countries in Europe and Asia. Many retail stores that import products in US dollars are feeling the pressure of rising costs. Over the last few weeks, many consumers have noticed that prices tags have been updated to higher prices. The slow growth in the building industry in general has also made them more vulnerable to this change.

But not all businesses are slowing down. Amid this difficult time for the tile retail industry, one business that seems to enjoy a sustained growth is TFO, or Tile Factory Outlet in Sydney. While their competitors are feeling the pinch of the slow growth and the rising operation costs, TFO seems to have taken a step in the right direction to cut costs and keep prices to minimum by relying on high turn overs with low margins. They have managed to keep the prices low in spite of the weakening currency rate.

As the competition in each industry heats up and accessibilities improve by means of the internet and social media, distinguishing winners and losers is getting easier by the day. Businesses that embrace the changes of the climate and proactively turn negatives into their strengths continue to thrive.


Contact
Yuki Ono