Consumer discretionary

Warren Buffett once said: “We look for three things when we hire people. We look for intelligence, we look for initiative and we look for integrity. And if they don’t have the latter, the first two will kill you.” continue…

by Roger Montgomery Posted in Consumer discretionary.

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With two supermarket CEO’s facing off against the Australian Competition and Consumer Commission (ACCC) in the battle for supermarket reputations, I wonder whether we will see vastly different behaviours from the new heads of Coles (ASX:COL) and Woolworths (ASX:WOW) than what we might typically have expected from their predecessors. continue…

by Roger Montgomery Posted in Consumer discretionary, Economics.

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In my recent interview with Ausbiz, I discussed the complex landscape for Australian consumers and the retail sector. While higher income earners are driving spending, lower income groups are tightening their belts, focusing on essentials like utilities and mortgages. Data from UBS and Finder reveals consumer trends remain resilient despite economic uncertainty. Retailers like JB Hi-Fi (ASX:JBH) and Nick Scali (ASX:NCK) have shown strong performance by gaining market share, particularly through overseas expansion, whereas others, like Harvey Norman (ASX:HVN), have lagged. Looking ahead to Christmas and Black Friday sales, I expect steady spending from wealthier consumers, but a drop among lower-income households, highlighting the challenges ahead for the retail sector.

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by Roger Montgomery Posted in Consumer discretionary, TV Appearances.

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Back in June 24, the picture for Australian consumers was ominously darkening.  While Australia’s major lenders had reported only modest increases in mortgage defaults and house repossessions, data from the Australian Securities and Investment Commission (ASIC) revealed Australia was on track to record the highest number of collapsed businesses in ten years, with businesses in the building game and in food services bearing the brunt of the impact from consumers ‘zipping up their wallets’. continue…

by Roger Montgomery Posted in Consumer discretionary.

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Australia is experiencing a population and demographic transformation, with nearly 50 per cent of our population able to claim at least one parent born overseas. George Tharenou of UBS analysed the implications in his recent report entitled “How will a ‘Big Australia’ impact the economy and the ‘intergenerational contract’?” The report dives deep into the effects of Australia’s population boom on the economy, asset prices, productivity, housing, and superannuation. continue…

by Roger Montgomery Posted in Consumer discretionary, Economics, Editor's Pick.

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Unsurprisingly, consumer spending dominates all other categories and contributors to economic growth in a consumption-based economy such as Australia’s. Australia’s private consumption accounted for 49.8 per cent of nominal gross domestic product (GDP) in the June 2023 quarter. Australia’s private consumption contribution to the Nominal GDP ratio, which is updated quarterly, from Sep 1959 to Jun 2023, averaged a 56.2 per cent share. continue…

by Roger Montgomery Posted in Consumer discretionary, Market commentary.

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As a result of the corporatisation of restaurants, there’s a plethora of them. The emergence of the Restaurant Group – Merrivale, Bentley, and The Speakeasy Group are examples which offer a business solution to the cost of independence through bulk buying power (for food and fit-outs) and merged accounting and marketing functions. continue…

by Roger Montgomery Posted in Consumer discretionary.

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Cettire (ASX:CTT), was launched in 2017, and is a global online retailer, offering more than 2,500 luxury brands and 500,000 personal luxury goods via its website, cettire.com. continue…

by Roger Montgomery Posted in Companies, Consumer discretionary.

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I think investors in businesses that generate meaningful revenue from point-of-sale hardware terminals (EFTPOS terminals) are sleepwalking towards their own financial cliff. And my reading of some of the broker research notes, covering the relevant companies, tells me the market doesn’t understand the implications.  There is therefore much more downside ahead for these businesses. continue…

by Roger Montgomery Posted in Companies, Consumer discretionary, Editor's Pick, Financial Services.

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Brisbane-based Collins Foods Limited (ASX:CKF) operates, manages, and administratively supports fast-food restaurants and food service outlets. The company’s portfolio of owned and franchised KFC outlets makes it one of the largest KFC franchisees in the world. continue…

by Roger Montgomery Posted in Companies, Consumer discretionary, Editor's Pick.

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