Rising interest rates and dwindling consumer spending could lead to an"increased rate of business failure" in the retail sector according to new data from Deloitte.
"Overall the economy may not be in recession but already there's parts of the economy that are really struggling. "It's likely that'll broaden somewhat and we'll see some cutbacks on travel, entertainment, those kind of discretionary services as well. With more international students expected to arrive back in the country ahead of the next university semester beginning, it is likely the sector will continue to benefit and offset some of the weaker domestic demand.
However, that point is still some way into the future and Mr Rumbens pointed to several warning signs that suggest the retail sector could soon be in trouble."Price growth in retail is starting to come down, so it's that pressure of a tighter environment and people are looking to contract their margins."We will see an increased rate of business failure."