Consumer discretionary

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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JB Hi-Fi has made no secret of its desire to snap up The Good Guys. The fact that its share price is trading at a premium to consensus suggests it will not only bid successfully for The Good Guys, but get it for a good price too. But big questions hang over both the success of the bid, and what price they will pay. continue…

by Ben MacNevin Posted in Companies, Consumer discretionary.

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From the corner bakery and coffee shop to big box retailers, there are almost 140,000 retail businesses in Australia. Collectively, they account for more than 4 per cent of GDP and just over 10 per cent of employment.

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by Roger Montgomery Posted in Consumer discretionary.

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Sam Courtenay from “In the Black” recently interviewed the Managing Director of Facebook and Instagram in Australia and New Zealand, Stephen Sheeler.  Sheeler said he wanted to persuade businesses of all sizes that they can be as close to their followers as the local café that knows all its customers by sight. Traditional media has failed to pinpoint its customers.  continue…

by David Buckland Posted in Consumer discretionary, Technology & Telecommunications.

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On 25 July, Woolworths provided a trading update that guided the market slightly lower on FY16 earnings. Given the negative sentiment surrounding the company, this was viewed as a positive outcome, and Woolworths’ share price appreciated 8.2 per cent on the day. Since then, Woolworths’ share price has drifted back 4 per cent, but remains well above its recent low of A$20.50 on 6 July. continue…

by Stuart Jackson Posted in Companies, Consumer discretionary.

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The Good Guys is reportedly on the market (again), but we wonder how much value is on offer for public investors? continue…

by Ben MacNevin Posted in Consumer discretionary.

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Following a recent trading update, Flight Centre (ASX:FLT) shares are trading at around their lowest levels for some years.   In its announcement to the market FLT attributed the weak trading to a wide assortment of issues including: the Federal election; Brexit; airfare price wars; investment in key improvement strategies and the Zika virus. continue…

by Tim Kelley Posted in Companies, Consumer discretionary.

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As a consumer I love it when Woolies offers lower prices. If I was still an investor in the shares of the company, I’d be much less sanguine. continue…

by Roger Montgomery Posted in Consumer discretionary, Insightful Insights.

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