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In general terms the report noted that almost all the retailers surveyed have reported higher gross margins in the first quarter of 08 and that there are two factors supporting gross margins - strong retail conditions combined with rational pricing behaviour and a higher AUD to USD ratio helping importers, with the benefits more than offsetting input cost pressures.
Furthermore, the report's authors, Citi Investment Research say they "believe the currency benefit is likely to be even larger in 2nd quarter of 08".
But the real surprises are in the figures themselves. For example, the best performing retailer in Australia in terms of sales growth was JB HiFi, with sales growth of 50 per cent—which was way above its next nearest rival, Country Road with sales growth at 34.8 per cent.
