Shane Solly: Harbour Asset Management spokesperson on the increase in retail spending at the end of 2024

Retailers are hoping a sales rebound means an industry uptick has begun.

Stats NZ data shows total retail sales increased 0.9 percent in the three months ending December - against the quarter before.

Harbour Asset Management's Shane Solly says this is a good sign for the economy - but warns companies not to get ahead of themselves.

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Episode Transcript

Speaker 1 (00:00):
Shane Solis here Harbor Asset Management.

Speaker 2 (00:02):
Shane good evening, Good a Ryan, how you are?

Speaker 1 (00:05):
Yeah, very good? Thank you? Does these stronger data we
got out today? This is the retail sales data up
point nine percent for the December quarter. Is that a
good Obviously it's a good sign. But is it good enough?

Speaker 2 (00:16):
Yeah?

Speaker 3 (00:16):
Look at face for you. It actually suggest it a
little bit of upside for the New Zion economy. Retail
sales quite sensitive to interest rates, so a bit of
a lead for the economy.

Speaker 2 (00:25):
But we've got to be careful when we break it down.

Speaker 3 (00:27):
Some of this might be about retailers actually doing a
bit of discount and cunning some prices to get stock out.
And certainly it's alway some of the more sensitive pieces
the recreational goods, electronics, department stores. These are real sensitive
to confidence and pricing bearer up and accommodation of food
and beverages up. Maybe that's about tourism, so a little
bit early, but you know, certainly it's helpful.

Speaker 2 (00:49):
It's just worried that it soon we bounce along the bottom.

Speaker 1 (00:52):
How bad is the Spark situation?

Speaker 3 (00:55):
Yeah, look, we have to see the company come out
with a strategy that really as convincing investors that they
are found the bottom, that they're turning around.

Speaker 2 (01:04):
A little bit cyclical. It is about the economy.

Speaker 3 (01:06):
They are sensitive to you and I and our decisions
to spend and what's happening with some of the government changes.

Speaker 2 (01:12):
But a little bit it's about what the company is doing.

Speaker 3 (01:15):
Is that we are looking forward to seeing a better
strategy coming from the management team. There's an opportunity with
data centers. But yeah, it's really about the company turning
things around.

Speaker 1 (01:25):
The retirement village operated. This is rhyme and healthcare. So
they've announced this billion dollar capital rights trying to get
rid of some debt.

Speaker 2 (01:32):
Yeah, they're raising a billion dollars.

Speaker 3 (01:34):
Very much about getting debt level point where they can
deal with a slower period of sales.

Speaker 2 (01:40):
It's harder for them to sell their retirement units.

Speaker 3 (01:43):
In the board and management set up, we need to
take the balance sheet risk away, reset the business transformer.
I think you really importantly it's a big goalp for
investors to digest. It has knocked the market around today.
We're seeing the New zeal market down one point on
the back of this announcement and a couple of soft
results from Chorus the cable communications provider and see you

(02:05):
on Tube. But really for residents of Rayman, this should
be seen as being a positive that does allow Ryman
to complete some of the developments that currently underway and
continue to provide the service levels that residents expect. But yeah,
a big hit on the day for the market.

Speaker 1 (02:20):
Yeah, absolutely sounds like its Shane, Thanks so much for that, Shane,
Soally Harbor Asset Management with us on News Talk.

Speaker 2 (02:26):
For more from Heather Duplessy Allen Drive.

Speaker 1 (02:28):
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