Currency to help smaller retailers

The weakening local currency is usually bad for the retail sector, but this time around smaller specialist retailers are set to benefit from it.

The falling Australian dollar is normally bad news for local retailers, but the impact of the exchange rate is less clear this time due to the shake-up in the traditional retail business model.

In fact, the softening Aussie could prove to be a net benefit even though Australian outlets typically pay for inventory in US dollars and sell in Australian dollars.

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