A rule change has been put into place through the IASB (International accounting standards board) which has made major retailers in the online shopping business domain to bring forward their leases over the balance sheets. These will now get understood as debts. Operators of retail now require expensing their amortization theoretically and financing their costs rather than understanding the payments of rent as incurred costs as per the financial review Australia. This depicts financial relate challenge that the new business will face upon operations.
Another issue is that the market has many opportunities. Many competitors are looking to grasp these opportunities. This will make the industry more and more competitive with time. Online shopping has become a key outlook in the region and therefore more businesses will open catering to the same. This will directly influence the current prospects of growth for any business. Additionally to the international retailer’s threat which have targeted the customers of New Zealand, local businesses as well have started facing challenges from brand organizations and manufacturers which were not considered traditionally as those competing. These businesses locally as well as internationally have recognized the offered opportunities through digital channels medium and have indulged in selling directly to the customers.