Myer has warned that its second half is off to a bit of a wonky start… and its $900 million acquisition ain’t delivering the goods
Kmart’s new boss wants to double its sales to $20 billion and she’s betting big on beauty, younger shoppers and Anko to get there
OpenAI just spent $6.5 billion USD on a startup with no product AND no revenue… but everyone’s excited
_
Learn more about iShares by BlackRock here
Download the free app (App Store): http://bit.ly/FluxAppStorel
Download the free app (Google Play): http://bit.ly/FluxappGooglePlay
Daily newsletter: https://bit.ly/fluxnewsletter
Flux on Instagram: http://bit.ly/fluxinsta
Flux on TikTok: https://www.tiktok.com/@flux.finance
—-
The content in this podcast reflects the views and opinions of the hosts, and is intended for personal and not commercial use. We do not represent or endorse the accuracy or reliability of any opinion, statement or other information provided or distributed in these episodes.
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
This is what the Flux. I'm Brett and I'm Justin
and an undated twenty sixth of Bay Jazzy Boy.
Speaker 2 (00:10):
Telstra has quietly removed some of the claims that made
about it to mobile coverage because apparently those claims were overstated.
You know how Telstra claims to provide coverage to ninety
eight point eight percent of Australias. Well, that coverage isn't
available on mobile phones, only on antenna's, which as far
as I know, nobody uses. So now Telster's wholesale customers
like Audin Woolworth's have all pulled the reference as well.
Speaker 1 (00:32):
Pull out my antenna right now, be man, flux Man.
Speaker 3 (00:35):
Every single year you probably pay a loyalty tax to
your bank, to your utilities provider, and even your internet
as well. That's because every year you stay with the
same provider, they jack up the prices. In this month's
Academy Getting a better Deal, we did you how to
stand up for yourself and save some serious cash. Make
sure to download the Flux app and check out the
academy this month.
Speaker 2 (00:53):
Three high probability stories Today Juzzy Boy, Let's do it
for our first. Meyer has worn that its second half
is off to a bit of a wonky start and
its nine hundred million dollar acquisition ain't delivering the goods.
Speaker 1 (01:04):
Thought these two would still be in the honeymoon period, Piphann,
what is going on here?
Speaker 2 (01:08):
Well, Mayer is one of Australia's oldest department stores, dating
back to nineteen hundred, pre federation.
Speaker 1 (01:13):
Abi Man. You may remember that earlier this year, Maya
acquired apparel brands from Premier Investments for nine hundred million
baccarunis I do so.
Speaker 2 (01:21):
Now they own over seven hundred retail stores with brands
like Just Jean's, Dotty, Jjy's, All Your Favorites uh huh,
and Jazyboy. Now, just sixteen weeks into the year, the
wedding glow is fading.
Speaker 1 (01:32):
Ye. Well, Maya's department store sales were up just one
point nine percent. It's new retailers from apparel brands saw
their revenue all three point nine percent.
Speaker 2 (01:40):
Not exactly love at first profit and lost statement and.
Speaker 1 (01:44):
B Man Meya blamed everything under the sun for their
slower performance.
Speaker 2 (01:48):
Well, it was cost of living pressures.
Speaker 1 (01:50):
Then it was the May federal election.
Speaker 2 (01:51):
Then it was intense discounting, and finally.
Speaker 1 (01:54):
It was the issues with their warehouse and logistics, which
still isn't resultd.
Speaker 2 (01:58):
So investors are now watching loosely to see if Maya's
nine hundred million dollar acquisition strategy will pay off.
Speaker 1 (02:04):
And it's not so easy to ensure a smooth transition
when your whole warehouse system is falling to pieces behind
the scenes.
Speaker 2 (02:10):
So what is the key learning here?
Speaker 1 (02:11):
Retail might look flashy on the outside, behind the scenes,
it's all about getting the basics.
Speaker 2 (02:15):
Right, and one of the most important basics a warehouse
that actually works.
Speaker 1 (02:19):
You see, b Man Maya's fancy new distribution center was
meant to be a game changer, but instead it has
been a total disaster.
Speaker 2 (02:26):
They've had issues with stock trapped in.
Speaker 1 (02:28):
The warehouse AKAA, the Bermuda triangle of stock. They've had
delayed deliveries, and they've had to resort to online orders
being picked by instore Star from instore Stock and Juzyboit.
Speaker 2 (02:38):
Maya reckons those issues have already cost them about twelve
million dollars in lost earnings, and that's just for the
first half of twenty twenty five alone.
Speaker 1 (02:45):
And when you're trying to integrate a big acquisition like
seven hundred news stores as well. A bungled warehouse is
the last thing you need for our second story.
Speaker 2 (02:54):
Kmart's new boss wants to double its sales to twenty
billion dollars and she is betting big on beauty, younger
shoppers and Anko in order to get there.
Speaker 1 (03:03):
God bless Anko. And it's cheap, cheap air fryers. So
tell me more.
Speaker 2 (03:06):
Well, Kmart is actually owned by the Kmart Group, which
also runs Target and the Ancho brand.
Speaker 1 (03:12):
And Kmart Group is actually owned by West Farmers, the
group that also owns Bunning's office works and a whole
lot more.
Speaker 2 (03:18):
Now, jes it wait. West Farmer's introduced a new managing
director for the Kmart Group in April this year, and
she came in swinging.
Speaker 1 (03:24):
She announced grand plans to double kmart sales to twenty
billion dollars in ten years.
Speaker 2 (03:29):
And okay, how is she planning to grow Kmart's revenue.
Speaker 1 (03:33):
Well, there's the standard stuff like expanding its online sales,
focusing on younger shoppers, but one of the key drivers
is expanding internationally. And be man, we're not talking about
Kmart expanding internationally.
Speaker 2 (03:44):
I know, we're talking Anko itself as standalone brand.
Speaker 1 (03:47):
In fact, Beman Andko is already planning to have five
standalone stores in the Philippines by the end of this
year and then also expand NCO with partnerships. But be Man,
the juiciest part is that Kmart's new MD doesn't just
want twin tenty billion revenue.
Speaker 2 (04:01):
Nope, she's also planning for two billion dollars in profit two,
which is a ten percent profit margin. Though what is
the key learning here, Well, in retail, it's not just
about how much stuff you sell, it's how fat your
margin is.
Speaker 1 (04:12):
Most big retailers run on razor thin margins.
Speaker 2 (04:15):
For example, Coal's profit margin was two point six percent
last year.
Speaker 1 (04:19):
JB Hygefire's was four point six percent.
Speaker 2 (04:21):
Meyer's profit was around one point six percent last year.
Speaker 1 (04:24):
The key to bigger profit margins, b Man home brands
like Ancho.
Speaker 2 (04:27):
It means that Kmart doesn't have to share profits with suppliers.
Speaker 1 (04:30):
And by selling Ancho overseas, they aiming to scale those
higher margin products globally.
Speaker 2 (04:34):
And joseybod Kmart isn't only pushing Ancho overseas.
Speaker 1 (04:37):
No. Ancho now makes up eighty five percent of kmart
sales in Australia too.
Speaker 2 (04:41):
In fact, it sells over one billion items a year.
Speaker 1 (04:44):
That's a whole lot of collapsible storage cubes and ring lights.
Speaker 2 (04:47):
So with Ancho leading the charge for Kmart, it's not
only helping Kmart grow it's revenue, but also it's profits.
Speaker 1 (04:53):
For our third and final story, open ai just spent
six and a half billion US dollars acquiring us up
with no product and no revenue, but everyone's excited. Big
bold call by open Ai. So juzyboy, what is going
on here? Let's take a stroll down gadget, memory Lane,
go on, the.
Speaker 2 (05:10):
iPhone, the Apple Watch, the iPad, all quite iconic gadgets
and all.
Speaker 1 (05:14):
Of these were designed by one man. Sir Johnny I've
aka Steve Jobs spiritual partner.
Speaker 2 (05:20):
Yeah, he's been considered the guru of smartphone and tech
design and Biman Ives left Apple in twenty nineteen and
started a company called Io last year. And be man,
it's not entirely.
Speaker 1 (05:31):
Clear what Io have or haven't built so far, but
now open ai will acquire Io in a six and
a half billion US dollar all stock deal.
Speaker 2 (05:38):
And juzy boy, this is open AI's biggest acquisition ever.
Speaker 1 (05:41):
Ives and the open AICEO say they're working on a
family of devices for the aiage.
Speaker 2 (05:46):
And the first product is expected next year.
Speaker 1 (05:49):
And while we don't have any details on the product,
we do know that open ai will bring over fifty
five engineers and designers from Io.
Speaker 2 (05:56):
With many who help shape Apple's devices. So what is
the key learning here and Acqua higher is when a
company buys another company not just for its products, but
for its people.
Speaker 1 (06:05):
It's become pretty comedy tech, especially when you need a
shortcut building a top tier team. In this case, b Man,
open Ai is buying access to one of the most
iconic industrial designers of all time, and that's a huge
advantage when trying to launch AI powered hardware devices.
Speaker 2 (06:19):
Particularly because open ai doesn't have that skill set right now.
Speaker 1 (06:22):
That alone sent Apple share price down two point three percent.
Speaker 2 (06:25):
Investors are clearly thinking, wait, what if this new crew
actually does build the next iPhone but for AI. So
only time will tell whether this acquisition was a stroke
of genius or making a big bet on potential.
Speaker 1 (06:38):
Alan Flex AMM If you feel like you're getting ripped
off left, right and center from an Internet provider, a
phone provider, even your lender, the Flex Academy this month
is your Bible. It'll give you the scripts on how
to communicate with them, how to negotiate with them, and
how to get a better deal. Make sure to download
the Flux app and check out in the Academy.
Speaker 2 (06:53):
Thanks for listening and we'll see you on Wednesday.
This is what the Flux. I'm Brett and I'm Justin
and an undated twenty sixth of Bay Jazzy Boy.
Speaker 2 (00:10):
Telstra has quietly removed some of the claims that made
about it to mobile coverage because apparently those claims were overstated.
You know how Telstra claims to provide coverage to ninety
eight point eight percent of Australias. Well, that coverage isn't
available on mobile phones, only on antenna's, which as far
as I know, nobody uses. So now Telster's wholesale customers
like Audin Woolworth's have all pulled the reference as well.
Speaker 1 (00:32):
Pull out my antenna right now, be man, flux Man.
Speaker 3 (00:35):
Every single year you probably pay a loyalty tax to
your bank, to your utilities provider, and even your internet
as well. That's because every year you stay with the
same provider, they jack up the prices. In this month's
Academy Getting a better Deal, we did you how to
stand up for yourself and save some serious cash. Make
sure to download the Flux app and check out the
academy this month.
Speaker 2 (00:53):
Three high probability stories Today Juzzy Boy, Let's do it
for our first. Meyer has worn that its second half
is off to a bit of a wonky start and
its nine hundred million dollar acquisition ain't delivering the goods.
Speaker 1 (01:04):
Thought these two would still be in the honeymoon period, Piphann,
what is going on here?
Speaker 2 (01:08):
Well, Mayer is one of Australia's oldest department stores, dating
back to nineteen hundred, pre federation.
Speaker 1 (01:13):
Abi Man. You may remember that earlier this year, Maya
acquired apparel brands from Premier Investments for nine hundred million
baccarunis I do so.
Speaker 2 (01:21):
Now they own over seven hundred retail stores with brands
like Just Jean's, Dotty, Jjy's, All Your Favorites uh huh,
and Jazyboy. Now, just sixteen weeks into the year, the
wedding glow is fading.
Speaker 1 (01:32):
Ye. Well, Maya's department store sales were up just one
point nine percent. It's new retailers from apparel brands saw
their revenue all three point nine percent.
Speaker 2 (01:40):
Not exactly love at first profit and lost statement and.
Speaker 1 (01:44):
B Man Meya blamed everything under the sun for their
slower performance.
Speaker 2 (01:48):
Well, it was cost of living pressures.
Speaker 1 (01:50):
Then it was the May federal election.
Speaker 2 (01:51):
Then it was intense discounting, and finally.
Speaker 1 (01:54):
It was the issues with their warehouse and logistics, which
still isn't resultd.
Speaker 2 (01:58):
So investors are now watching loosely to see if Maya's
nine hundred million dollar acquisition strategy will pay off.
Speaker 1 (02:04):
And it's not so easy to ensure a smooth transition
when your whole warehouse system is falling to pieces behind
the scenes.
Speaker 2 (02:10):
So what is the key learning here?
Speaker 1 (02:11):
Retail might look flashy on the outside, behind the scenes,
it's all about getting the basics.
Speaker 2 (02:15):
Right, and one of the most important basics a warehouse
that actually works.
Speaker 1 (02:19):
You see, b Man Maya's fancy new distribution center was
meant to be a game changer, but instead it has
been a total disaster.
Speaker 2 (02:26):
They've had issues with stock trapped in.
Speaker 1 (02:28):
The warehouse AKAA, the Bermuda triangle of stock. They've had
delayed deliveries, and they've had to resort to online orders
being picked by instore Star from instore Stock and Juzyboit.
Speaker 2 (02:38):
Maya reckons those issues have already cost them about twelve
million dollars in lost earnings, and that's just for the
first half of twenty twenty five alone.
Speaker 1 (02:45):
And when you're trying to integrate a big acquisition like
seven hundred news stores as well. A bungled warehouse is
the last thing you need for our second story.
Speaker 2 (02:54):
Kmart's new boss wants to double its sales to twenty
billion dollars and she is betting big on beauty, younger
shoppers and Anko in order to get there.
Speaker 1 (03:03):
God bless Anko. And it's cheap, cheap air fryers. So
tell me more.
Speaker 2 (03:06):
Well, Kmart is actually owned by the Kmart Group, which
also runs Target and the Ancho brand.
Speaker 1 (03:12):
And Kmart Group is actually owned by West Farmers, the
group that also owns Bunning's office works and a whole
lot more.
Speaker 2 (03:18):
Now, jes it wait. West Farmer's introduced a new managing
director for the Kmart Group in April this year, and
she came in swinging.
Speaker 1 (03:24):
She announced grand plans to double kmart sales to twenty
billion dollars in ten years.
Speaker 2 (03:29):
And okay, how is she planning to grow Kmart's revenue.
Speaker 1 (03:33):
Well, there's the standard stuff like expanding its online sales,
focusing on younger shoppers, but one of the key drivers
is expanding internationally. And be man, we're not talking about
Kmart expanding internationally.
Speaker 2 (03:44):
I know, we're talking Anko itself as standalone brand.
Speaker 1 (03:47):
In fact, Beman Andko is already planning to have five
standalone stores in the Philippines by the end of this
year and then also expand NCO with partnerships. But be Man,
the juiciest part is that Kmart's new MD doesn't just
want twin tenty billion revenue.
Speaker 2 (04:01):
Nope, she's also planning for two billion dollars in profit two,
which is a ten percent profit margin. Though what is
the key learning here, Well, in retail, it's not just
about how much stuff you sell, it's how fat your
margin is.
Speaker 1 (04:12):
Most big retailers run on razor thin margins.
Speaker 2 (04:15):
For example, Coal's profit margin was two point six percent
last year.
Speaker 1 (04:19):
JB Hygefire's was four point six percent.
Speaker 2 (04:21):
Meyer's profit was around one point six percent last year.
Speaker 1 (04:24):
The key to bigger profit margins, b Man home brands
like Ancho.
Speaker 2 (04:27):
It means that Kmart doesn't have to share profits with suppliers.
Speaker 1 (04:30):
And by selling Ancho overseas, they aiming to scale those
higher margin products globally.
Speaker 2 (04:34):
And joseybod Kmart isn't only pushing Ancho overseas.
Speaker 1 (04:37):
No. Ancho now makes up eighty five percent of kmart
sales in Australia too.
Speaker 2 (04:41):
In fact, it sells over one billion items a year.
Speaker 1 (04:44):
That's a whole lot of collapsible storage cubes and ring lights.
Speaker 2 (04:47):
So with Ancho leading the charge for Kmart, it's not
only helping Kmart grow it's revenue, but also it's profits.
Speaker 1 (04:53):
For our third and final story, open ai just spent
six and a half billion US dollars acquiring us up
with no product and no revenue, but everyone's excited. Big
bold call by open Ai. So juzyboy, what is going
on here? Let's take a stroll down gadget, memory Lane,
go on, the.
Speaker 2 (05:10):
iPhone, the Apple Watch, the iPad, all quite iconic gadgets
and all.
Speaker 1 (05:14):
Of these were designed by one man. Sir Johnny I've
aka Steve Jobs spiritual partner.
Speaker 2 (05:20):
Yeah, he's been considered the guru of smartphone and tech
design and Biman Ives left Apple in twenty nineteen and
started a company called Io last year. And be man,
it's not entirely.
Speaker 1 (05:31):
Clear what Io have or haven't built so far, but
now open ai will acquire Io in a six and
a half billion US dollar all stock deal.
Speaker 2 (05:38):
And juzy boy, this is open AI's biggest acquisition ever.
Speaker 1 (05:41):
Ives and the open AICEO say they're working on a
family of devices for the aiage.
Speaker 2 (05:46):
And the first product is expected next year.
Speaker 1 (05:49):
And while we don't have any details on the product,
we do know that open ai will bring over fifty
five engineers and designers from Io.
Speaker 2 (05:56):
With many who help shape Apple's devices. So what is
the key learning here and Acqua higher is when a
company buys another company not just for its products, but
for its people.
Speaker 1 (06:05):
It's become pretty comedy tech, especially when you need a
shortcut building a top tier team. In this case, b Man,
open Ai is buying access to one of the most
iconic industrial designers of all time, and that's a huge
advantage when trying to launch AI powered hardware devices.
Speaker 2 (06:19):
Particularly because open ai doesn't have that skill set right now.
Speaker 1 (06:22):
That alone sent Apple share price down two point three percent.
Speaker 2 (06:25):
Investors are clearly thinking, wait, what if this new crew
actually does build the next iPhone but for AI. So
only time will tell whether this acquisition was a stroke
of genius or making a big bet on potential.
Speaker 1 (06:38):
Alan Flex AMM If you feel like you're getting ripped
off left, right and center from an Internet provider, a
phone provider, even your lender, the Flex Academy this month
is your Bible. It'll give you the scripts on how
to communicate with them, how to negotiate with them, and
how to get a better deal. Make sure to download
the Flux app and check out in the Academy.
Speaker 2 (06:53):
Thanks for listening and we'll see you on Wednesday.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.
True Crime Tonight
If you eat, sleep, and breathe true crime, TRUE CRIME TONIGHT is serving up your nightly fix. Five nights a week, KT STUDIOS & iHEART RADIO invite listeners to pull up a seat for an unfiltered look at the biggest cases making headlines, celebrity scandals, and the trials everyone is watching. With a mix of expert analysis, hot takes, and listener call-ins, TRUE CRIME TONIGHT goes beyond the headlines to uncover the twists, turns, and unanswered questions that keep us all obsessed—because, at TRUE CRIME TONIGHT, there’s a seat for everyone. Whether breaking down crime scene forensics, scrutinizing serial killers, or debating the most binge-worthy true crime docs, True Crime Tonight is the fresh, fast-paced, and slightly addictive home for true crime lovers.