According to Kiwibank retail card spending annual growth in March quarter was up 41.8% - not much danger to worry about yet.
Printable View
Mary Jo in her blog did mention a grain of salt when discussing the numbers
Thanks alokdhir for posting anyway ..report was pretty meaningless
KB economist "there appears to be a limit to the number of pools we can fit in the backyard, or how many times we need to repaint the house."
Me and most my friends bought bulk paint and building materials just prior to lockdown. We had a few days warning before level 4 so we hit the shops before 27 march last year. The resene shop was packed and the queue was out the door. At mitre 10 I witnessed others loading up trailers etc with you name it. I am surprised the yoy drop is only 9 percent because the first 2 and half months of 2020 were already busy.
Edit: i might have confused which periods they are referring to. The report is ambiguous imo
Here it is on the Kiwibank website - very clearly shows the huge year on year increases still
https://inner.kiwi/commentary/snap-l...ending-streak/
Kiwibank transactional data - wonder how representative that is in the big picture anyway
I had a quick glance at that report. It is terribly written. It seems the March quarter is being compared to the December quarter, not that it says that. I would have thought such a drop was an annual event..? To then pour cold water on the annual growth of 41% because there has been a "structural shift away from cash" - does the author think EFTPOS cards were invented in the past 12 months? The report is absolute rubbish. The only thing to take with a grain of salt is the authors credibility.
Well they are SVR's bankers after all.
yep i would take the kiwibank report with a grain of salt. retail sales up 41% yoy is huge even if it falls a little its not going to fall 41% this year and you would expect a little pull back. margins retail stocks are making are unlikely to fall though thats probably more important.
Perhaps part of the reasoning too? https://www.nzherald.co.nz/business/...P63DZ44BQI75Q/
Can only pass on price increases if they have product in stock.....
But in terms of WHS, currency has moved favourably in the last 12 months. Also think they already pay the living wage, so already were over $20/hr.
Although the "living wage" will also no doubt increase.
I think we agreed the other day that Mary Jo's Kiwibank report the othr day was rubbish.
Stats NZ Electronic Card Spend data out today - covers all card spend in NZ (bit more robust than just Kiwibank transactional data I think)
Below a summary
Things are 'slowing' a bit they say - if you prefer the seasonally adjusted numbers
expanding further on the retail sales
Changes in the actual value of electronic card transactions for the March 2021 month (compared with March 2020)
Durables sub-industry movements:
- furniture, electrical, and hardware retailing, up $105 million (17 percent)
- department stores, up $54 million (20 percent)
- recreational goods, up $21 million (16 percent)
- pharmaceutical and other store-based retailing, up $9.9 million (2.9 percent).
https://www.stats.govt.nz/informatio...ons-march-2021
So look like the commentaries from the jbhi fi , harvey norman , warehouse etc all similar about sales etc still good into this year is continuing with another good month in march. still in line with my thinking that these types of stocks will still report very healthy results in the second halve this year and big increased dividends in line with the increased profits.
Part (all, or more?) of the annual increase will be due to the last week of March 2020 being in lockdown. The pharmaceutical anomaly might have been people stocking up pre-lockdown which masked the impact.
More redundancies ...and prob getting rid of those stupid jewellery departments
More profit for shareholders
Good stuff
https://www.stuff.co.nz/business/124...ndancy-rumours
Sad for the workers eh. Sign of the times thou. Less employees, more technology, more automation. Blame amazon.. or progress.
Sales booming yet we need less employees.. And this is what consumers demand- lower prices. Actually this is why in the long term I am a deflationist. The same product or service can be sold for less and less cost.
The last time I went to the warehouse I picked out the product I wanted, purchased it at the self checkout and walked out without needing anyone's help. Don't recall seeing many employees actually- how many are left to make redundant?
(NB. As a shareholder I am happy)