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The Computer and Software Retailing industry’s performance has fluctuated over the past five years. The dynamic nature of digital technology, combined with increasing demand for tablets, has created opportunities for revenue growth over the period. However, weak discretionary income and volatile consumer sentiment have limited retail spending and ultimately have constrained industry revenue. Growing competition, particularly from online-only players, has placed downward pressure on industry prices over the past five years.
Computer and software retailers are projected to continue facing a tough trading environment over the next five years. Continuing growth in cloud computing and software developments are anticipated to enhance the functionality of existing hardware and extend replacement cycles, threatening industry demand. However, continued advances in technology and a projected appreciation of the Australian dollar are forecast to support modest profit margin growth over the period. Players are forecast to expand their online offerings to combat competition from online-only retailers, boosting revenue.