Slowdown in External Administrations for First Month of 2016

Business owners in specific industries continue to face challenges

Corporate Finance & Restructuring

March 15, 2016

The release of the monthly Australian Securities and Investments Commission’s (“ASIC”) Insolvency Statistics show a continued slowdown in January with 461 external administrations entering into Australia-wide, against 627 in December 2015. However, going on the trend of previous year’s statistics that number should steadily increase as business owners in specific industries continue to face challenges.

“One of the main challenges for retail is that the industry is going to change more in the next five years than it did in the previous 50 which is being driven by transformations in technology and new customer dynamics,” said Tom Lemke, Senior Managing Director and Head of Retail, Asia Pacific at FTI Consulting.

“By 2020 the Millennials will be the largest portion of the workforce and right behind them will be Generation Z or Generation D — the digital generation — who are complete digital consumers. These two groups will think and interact with retailers in a whole new way and if retailers are not ready for this evolution and are not aligning themselves with these changes, they will be left behind,” he said.

“Whilst we are not currently seeing retail insolvencies directly attributed to the generational shift, there are real challenges ahead for retailers to adapt to the changing customer evolution.”

“There is an evolution starting to take place and retailers need to address it now with technology, a highly tuned customer experience, and customer data and analytics — to ensure the customer’s experience, online, in-store, or on mobile, anywhere they shop is seamless and consistent.”

More Info

Share this page