Retail is as tough as it has been in years as constant discounting and an online shopping onslaught have smashed margins, say industry heavyweights.
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Hilton Seskin – the founder of Rebel Sport, the Glue Store format, and who has most recently has partnered with the successful JD Sports PLC – said he has never seen the retail sector "so tough".
Mr Seskin also ran the Australian franchise for the UK fashion group Topshop Topman, which was placed into administration in May. He said its model was "broken" almost before it began, as the Australian franchise had "very little control of inventory and prices".
He said the Topshop Topman model was to send the clothes from the manufacturer, usually in Asia, to a warehouse is Britain, where they are priced "in Euro" then sent to Australia.
"When I say it's tough ... the retail industry is hit by prolific discounting, and when that occurs there is also a click frenzy with people going online and that takes cash away from bricks and mortar sites," Mr Seskin told a 500-strong audience of retailers at the Australia-Israel Chamber of Commerce event in Sydney on Thursday.
"I don't think all retailers will fall over, but they must adapt to change or they will be left behind. It is all about the consumer, but the retailer and landlord must collaborate to provide what consumers want."
The chief executive of mall giant Scentre Group, Peter Allen, was also on the panel. He said the only constant in retail is change.
![Hilton Seskin says conditions are as tough as he has seen them.](http://web.archive.org./web/20170616010838im_/https://www.fairfaxstatic.com.au/content/dam/images/g/v/q/3/q/4/image.related.articleLeadwide.620x349.gwruhx.png/1497537468148.jpg)
He argued that offering multi-channel ways to buy goods was the way to survive, adding that his leasing agents at Westfield look at "curating" leases for different tenants.
"Australian consumers are not broke but are being more selective about the products they buy," Mr Allen said. "It is all about the right mix."
![Hilton Seskin, Catherine Harris, Peter Allen and Paul Greenberg at the Australia-Israel Chamber of Commerce retail event ...](http://web.archive.org./web/20170616010838im_/https://www.fairfaxstatic.com.au/content/dam/images/g/w/r/s/l/u/image.related.articleLeadwide.620x349.gwruhx.png/1497537468148.jpg)
He told the audience he believes the consumer mood is still "pretty good" as retail sales continue to rise despite pressure from online outlets such as Amazon.
"We are seeing a little bit of a mix in terms of retailers and their performance, but a lot of that comes down to the product they have and the service they are providing," Mr Allen said.
![Catherine Harris says avocados are selling.](http://web.archive.org./web/20170616010838im_/https://www.fairfaxstatic.com.au/content/dam/images/g/v/w/i/b/3/image.related.articleLeadwide.620x349.gwruhx.png/1497537468148.jpg)
On the arrival of Amazon to Australia, Mr Allen said "it's already here and has about $1 billion of sales by Australians, with the cash going offshore".
"I guess for local retailers, the noise out there of Amazon arriving will cause people to try and buy, but for retailers in a great physical space they can survive by providing customers with an experience."
Catherine Harris, the co-founder and chair of Harris Farm Markets, said retail is still about a transaction between a retailer and customer.
"It's about price and product – but there is so much pressure on prices and high demand on produce," Ms Harris said.
But, she said, using her own "Avocado index", "things are not as tough for food operators ... as the avos are flying out the door".