It certainly hasn't been a great day to be a shareholder of Australian retailers. At lunch a good number of retail shares have fallen significantly after the release of disappointing retail sales data.
According to the Australian Bureau of Statistics, Australian retail sales fell 0.1% in March. With the market expecting a 0.3% increase, this was a big miss and will no doubt be a big concern for retailers.
One notable decline was electrical and electronic goods retailing. Sales fell 0.4% on a seasonally-adjusted basis, which has unsurprisingly put pressure on the shares of electronic product retailers.
The Harvey Norman Holdings Limited (ASX: HVN) share price has been the worst performer in the industry with a 6% drop to $4.03. Rival JB Hi-Fi Limited (ASX: JBH) isn't far behind with a 4.5% drop to $23.97. Communication and electronics retailer Vita Group Limited (ASX: VTG) has also seen its share price drop 2% to $2.05.
Elsewhere the Greencross Limited (ASX: GXL) share price has fallen 2.5% to $6.54. Whilst Greencross is best known for its veterinary practices, it also has a strong retail presence through its Petbarn pet stores.
Other retailers also suffering today are OrotonGroup Limited (ASX: ORL) and Cash Converters International Ltd (ASX: CCV). Both respective share prices are down around 3%.
Should you invest in these retailers?
Although retail sales have taken a step backwards, hopefully tonight's Budget will do something to reignite wage growth and encourage consumer spending.
But even if that does happen, I wouldn't be in a rush to invest in the majority of these retailers.
I think the probable launch of Amazon in Australia later this year is likely to be a major headwind for retailers moving forward and something investors should be watching out for.
Out of all the shares mentioned above, Greencross would be the only one I would consider buying today. I feel it is less likely to be negatively impacted by an Amazon launch.
