Shopping in a Physical Store is Still a Thing: How to Stand Strong in the Online

1. Shopping in a Physical Store is Still a Thing: How to Stand Strong in the Online Marketplace In our last “Looking closely at the Online Retail Market” blog by Luke Winchester, we talked about how it’s becoming increasingly expensive to run a consumer brand—especially with the rise of online retailing. In short, it’s difficult to compete. What we mostly saw across the retail industry was a slowing of growth in these companies when compared to when the COVID-19 pandemic began. Investors were concerned because of the high multiples companies were trading throughout the pandemic. That combined with the increasing costs needed for online companies to produce revenue growth, and financial advisor Central Coast had much to be concerned about. It's a competitive market these days, even more so than in previous years, because of the pandemic. To stay afloat, companies have to be smart, strategic and know when to cut their

2. losses. The omni channel companies seem to have been able to do this better during the pandemic, and that's why we recommend them. An Investment Ethic At Oracle, as the local financial advisor in Central Coast, we invest in companies that are continuing to increase their margins and are sustaining them as they grow the top line of their businesses. At Oracle, as a financial advisor in Central Coast, to help the locals, we have built the Oracle Emerging Companies portfolio to include businesses that have a presence in several areas—such as online and physical storefront. An example is Premier Investments. The retail giant, which is led by Solomon Lew, produces brands such as Smuggle, Just Jeans and Peter Alexander. What made Premier Investments so successful is that it was able to reduce its costs and increase its profit margins over time. When the pandemic hit, Premiere Investments negotiated leases and rents with landlords. It had the wisdom and foresight to close stores that were struggling. Over time, it increased its revenue and didn’t go under. Take a look at the chart below detailing Premier’s half-year results for 2021. The Sum of the Parts For retails that have an online presence only, there is a good amount of pressure in the market because of rising costs. It's not an impossible market but retailers should understand what they are getting into. Tech companies such as Facebook and Google are still some of the major companies Australians rely on. This make the competition fierce for online-only companies. However, multi-channel retailers are showing more promise. This companies have consistently been able to ride the wave of the pandemic by maintaining or decreasing their margins. Even if companies have a brick-and-mortar storefront, they were able to renegotiate lower rents to stay afloat. Plus, omni channel

3. retailers are more reasonably priced than online-only retailers. At Oracle, as your financial advisor Central Coast, we prefer the omni channel retailers in the Oracle Emerging Companies portfolio. Powered B Powered By y