Australians are the second-wealthiest people in the world. But when it comes to clothes shopping our tastes are cheaper and more masculine than you might expect.
"The money is where everyone can shop," said retail veteran Gary Novis.
![Tarocash wants some cash](/web/20170413003021im_/http://www.canberratimes.com.au/content/dam/images/g/t/d/v/y/q/image.related.articleLeadwide.620x349.gvg7f8.png/1491771968669.jpg)
Mr Novis is the long-time boss of Retail Apparel Group, which owns menswear brands Tarocash, yd., Connor and Johnny Bigg, as well as women's workout retailer Rockwear.Â
Shoppers spend an average $51 in Tarocash, $44 in yd., and $31 in Connor. At "big and tall" menswear brand Johnny Bigg the average sales price is $56, while at "athleisure" brand Rockwear it is $32.
Mr Novis said the growth of online shopping and the entry of international chains such as H&M; has dragged down down the amount Australians were willing to pay for clothes.
And he said menswear is growing faster than womenswear.
"Guys love to shop," Mr Novis said. "The new guy, the 18-to-30-year-old, is shopping more, is more aware of himself, knows what he wants when he goes shopping."
RAG's rumoured $400 million sharemarket listing comes at what can politely be described as interesting times for retailers.
Online giant Amazon is preparing to expand in Australia.
The last official retail figures showed clothing sales fell by 2.9 per cent in February.
Company collapses – of Marcs, David Lawrence, Payless Shoes, Herringbone, Rhodes & Beckett and Pumpkin Patch – dominate the headlines.
And investors are also still wary of private equity-backed retailers in the wake of disastrous floats Myer and Dick Smith. RAG is owned by private equity firm Navis Capital.
But Mr Novis said retailers that understand their customers and have a differentiated offer have nothing to fear.
"Lots of retailers blame the weather or the tax man, everyone around them," he said. "We had a very strong January. February was a little tough, but March was very good."
RAG increased sales to $326 million from almost 400 stores in the 2016 financial year. A big plank of its sales pitch is expanding store numbers for "emerging" brands Connor, Johnny Bigg and Rockwear.Â
Mr Novis, formerly of South African retail giant Woolworths, David Jones and Specialty Fashion Group, said there were "still retailers that are doing very well. The market understands that."
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