As all these retail stocks most time are one result wonders only ....so I am very vary of these and their dividend yield theme ...Divvies dont make up for the big capital loss risk they pose ...also very illiquid so not easy to get out too especially when theme turns sour ...
According to Kiwibank retail card spending annual growth in March quarter was up 41.8% - not much danger to worry about yet.
Last edited by LaserEyeKiwi; 08-04-2021 at 04:36 PM.
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
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
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.
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.
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