Consumer discretionary

It’s time to ask whether the tyranny of distance becomes the achilles heel of the giant online shopping networks … or to put it another way, are logistics companies part of the online boom or part of its problem? continue…

by Roger Montgomery Posted in Companies, Consumer discretionary.

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Malls were a very handy invention, allowing motorised shoppers to visit one location for all their retail desires. Yet as the internet keeps providing easier ways to get all your needs at the one place from the comfort of home, we wonder what will happen to the humble mall?

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by Ben MacNevin Posted in Consumer discretionary.

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Amazon and changing consumer habits claimed another victim during the week with US ‘category killer’ Toys R Us filing for Chapter 11 bankruptcy protection. This brings the total number of US retailers that have filed for Chapter 11 to 24 this year, up from 18 in 2016, according to S&P Global Market Intelligence. And there’s still three months of the year to go. continue…

by Stuart Jackson Posted in Companies, Consumer discretionary.

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Disney will move its Disney and Pixar branded movies from Netflix to its own streaming platform in 2019. It’s not surprising that Disney is pursuing a direct relationship with the consumers of their content, but you may be surprised to learn that Disney still desires one middle-man to remain.
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by Ben MacNevin Posted in Consumer discretionary.

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The plight of Myer Holdings reflects the massive changes occurring in the retail space. Myer’s share price has plummeted from around $3 back in 2013 to just 76 cents. The price now implies a 3x EV/ EBITDA multiple – which looks cheap. So, what is this price assuming? Is it screaming cheap, or a value trap? continue…

by Lisa Fedorenko Posted in Consumer discretionary.

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Consumer spending has risen strongly in the past year, spurred on by property owners feeling richer due to higher house prices. This is called the household wealth effect. But with house prices looking toppy, should retailers – and investors – be concerned about the effects of a property market correction? continue…

by Andreas Lundberg Posted in Consumer discretionary, Property.

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In April, Amazon sent a wave of fear through retailers when it confirmed its intention to launch in Australia. Leading retailer, Gerry Harvey, described Amazon as the “Attila the Hun” of the retail world. To be sure, Amazon’s arrival will pose a massive threat. But there are other challenges on the horizon for retailers – and investors. continue…

by Andreas Lundberg Posted in Consumer discretionary.

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We’ve been cautious on the retail space for some time – particularly retailers at risk of being hurt by Amazon’s entry into Australia. Two of the companies we believe will be most affected are the electronic retailers, JB Hi-Fi and Harvey Norman. continue…

by Andreas Lundberg Posted in Consumer discretionary.

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Furniture and appliance retailers, like JB Hi-Fi and Harvey Norman, are enjoying their best trading conditions in a decade, buoyed by low interest rates and a renovation boom.  Alas, these sunny conditions won’t last.  And there’s more for the retailers to worry about than rising interest rates putting a clamp on demand.  There’s also the small matter of Amazon setting up ‘down under’. continue…

by Roger Montgomery Posted in Consumer discretionary.

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Ask most retailers, and they’ll tell you it’s a tough, competitive environment out there.  Recently, we’ve seen a number of established businesses hit the wall, under the twin assaults of online shopping and the entry of international brands.  The bad news is: it’s not about to get any easier. continue…

by David Buckland Posted in Consumer discretionary.

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