What does 2021 hold for ASX retail shares?
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2020 was a tough year for the retail sector and many ASX retail shares. Shops were shuttered globally in the effort to fight COVID-19, putting a major dampener on sales. Retail sales in Australia fell more than 17% in April, the greatest fall on record.
While spending was down in the June quarter, the September quarter made up for it with sales rebounding above pre-COVID levels. Pent up demand was unleashed as restrictions eased, with retailers seeing a surge in volumes. Positive momentum continued into the December quarter, with Deloitte predicting growth of 2.6% in retail volumes over 2020.
Retail sales rose 7% in November to boost ASX retail shares
Lina Lim | January 12, 2021 5:19pm |
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The rise was led by Victoria, which saw its retail sales surge by 22.4% as Melbourne retail stores were able to trade for a full month in November. Excluding Victoria, turnover increased 2.6%.
ASX retail shares have largely reported upbeat earnings, especially in the months of November and December. Here are the industries and ASX retail shares that have benefitted from improved retail conditions.
Industry level breakdown
Coinciding with the strong performance for this segment,
Accent Group(ASX: AX1) released a trading update on 7 January 2021 citing stronger than expected sales in November and December. The company is now expecting group earnings before interest, tax, depreciation and amortisation (EBITDA) for the half year ended 27 December 2020 to be in the range of $95 million to $98 million, which represents a g
3 small cap ASX shares to buy for 2021
Tristan Harrison | December 31, 2020 4:19pm |
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There are some small cap ASX shares that may be able to generate good returns in 2021.
Identifying a business that’s earlier on in its growth journey may mean it’s possible to capture more capital growth.
Here are three smaller businesses with growth potential:
City Chic is a retail ASX share that sells plus-size clothing, footwear and accessories to women.
It adapted to COVID-19 conditions by ramping up its online sales, which grew 113.5% in FY20 and represented 65% of total sales. Fund manager Chris Prunty from QVG Capital thinks that the e-commerce theme will continue to grow after COVID-19 has passed. For a business like City Chic, the small cap ASX share’s ability to sell products online underlines its ability to build a market-leading position for itself.