1 00:00:05,160 --> 00:00:06,600 Speaker 1: This is what the blucks. 2 00:00:06,680 --> 00:00:09,040 Speaker 2: I'm Brett and I'm Justin and it's Friday, the second 3 00:00:09,039 --> 00:00:09,320 Speaker 2: of eight. 4 00:00:09,400 --> 00:00:11,720 Speaker 1: What's the old saying? Juzzy Boy, nice guys and girls 5 00:00:11,720 --> 00:00:16,400 Speaker 1: finish last, Well, it's the same for weirdly nice ai chatbots. 6 00:00:16,520 --> 00:00:20,000 Speaker 1: Chat JBT users have been criticizing its latest release because 7 00:00:20,000 --> 00:00:23,720 Speaker 1: supposedly chat jbt is giving touchy feely responses that were 8 00:00:23,720 --> 00:00:27,720 Speaker 1: oddly supportive for strange and even violent behaviors. So now 9 00:00:27,800 --> 00:00:30,720 Speaker 1: open Ai has rolled back its latest update and is 10 00:00:30,760 --> 00:00:33,360 Speaker 1: working on some stronger guard rail. 11 00:00:33,560 --> 00:00:35,959 Speaker 2: Ma'am, it's Friday again, which means your chance to win 12 00:00:36,000 --> 00:00:38,440 Speaker 2: fifty bucks in the flux out. Make sure you've downloaded 13 00:00:38,440 --> 00:00:40,479 Speaker 2: the app, but with notipations turned on because you've got 14 00:00:40,520 --> 00:00:43,519 Speaker 2: the first person to answer three business all finance questions correctly. 15 00:00:43,600 --> 00:00:45,640 Speaker 2: You could win the money this week to get ready 16 00:00:45,680 --> 00:00:47,000 Speaker 2: for quick sticks today. 17 00:00:46,720 --> 00:00:49,599 Speaker 1: Three high profile stories today, Juzzy Boy, Let's do it 18 00:00:49,640 --> 00:00:53,320 Speaker 1: for our first. Coles is winning the supermarket war as 19 00:00:53,360 --> 00:00:57,280 Speaker 1: its private label brands and online sales drive its revenue up, 20 00:00:57,400 --> 00:01:00,360 Speaker 1: up and up Go Big redbeanan all Right So Coals 21 00:01:00,400 --> 00:01:04,360 Speaker 1: is Australia's second largest supermarket chain behind the Big Dog Woolies. 22 00:01:04,000 --> 00:01:06,160 Speaker 2: And you might remember it was spun out of West 23 00:01:06,200 --> 00:01:08,320 Speaker 2: Farmers back in twenty eighteen and has more than eight 24 00:01:08,400 --> 00:01:10,640 Speaker 2: hundred Big Red stores around Australia. 25 00:01:10,760 --> 00:01:13,640 Speaker 1: And now Coal Supermarkets have seen its sales jump to 26 00:01:13,760 --> 00:01:16,720 Speaker 1: nine point four billion dollars for the most recent quarter. 27 00:01:16,480 --> 00:01:18,319 Speaker 2: And that's a jump of four point seven percent on 28 00:01:18,360 --> 00:01:21,720 Speaker 2: the same time last year. Excluding tobacco and Juzzi. The 29 00:01:21,760 --> 00:01:24,640 Speaker 2: real MVP of this growth has been Coal's online sales. 30 00:01:24,840 --> 00:01:26,959 Speaker 2: It jumped over twenty five percent this quarter to one 31 00:01:26,959 --> 00:01:27,880 Speaker 2: point one bill. 32 00:01:27,800 --> 00:01:31,319 Speaker 1: Which is now more than eleven percent of total supermarket sales. 33 00:01:31,319 --> 00:01:33,319 Speaker 2: But man, man, if you thought that was the only MVP, 34 00:01:33,680 --> 00:01:34,480 Speaker 2: you would be wrong. 35 00:01:34,600 --> 00:01:38,160 Speaker 1: Oh No. Sales for Coal's finest is Bougie private label 36 00:01:38,360 --> 00:01:41,280 Speaker 1: also increased nearly fourteen percent this quarter. 37 00:01:41,440 --> 00:01:43,920 Speaker 2: It's a surprise that Coals is blowing balloons and popping 38 00:01:43,920 --> 00:01:44,520 Speaker 2: the shampas. 39 00:01:44,640 --> 00:01:46,560 Speaker 1: And to top things off, if you don't mind, more, 40 00:01:46,600 --> 00:01:50,200 Speaker 1: shoppers are now calling Coals their main supermarket ahead of 41 00:01:50,200 --> 00:01:52,559 Speaker 1: Woolies according to UBS, and it's. 42 00:01:52,440 --> 00:01:54,440 Speaker 2: The first time that Coals is above will Worths in 43 00:01:54,480 --> 00:01:55,000 Speaker 2: this survey. 44 00:01:55,080 --> 00:01:57,800 Speaker 1: When it rains, it pours for Coals yep. 45 00:01:57,840 --> 00:01:59,120 Speaker 2: So what is the key learning here. 46 00:01:59,240 --> 00:02:02,040 Speaker 1: Private label has had a major glow up in the 47 00:02:02,080 --> 00:02:03,040 Speaker 1: supermarket space. 48 00:02:03,120 --> 00:02:05,560 Speaker 2: Yeah, it's no longer just the land of cheap biscuits 49 00:02:05,600 --> 00:02:07,760 Speaker 2: and sad cheeses and basic labels. 50 00:02:07,880 --> 00:02:11,280 Speaker 1: Now Coles has rebranded its home brand ranges into something 51 00:02:11,520 --> 00:02:13,920 Speaker 1: quite aspirational and it's actually working. 52 00:02:14,040 --> 00:02:16,160 Speaker 2: In fact, they manned. Late last year, Cole said their 53 00:02:16,160 --> 00:02:18,920 Speaker 2: premium home brand was growing at double the speed of 54 00:02:18,960 --> 00:02:20,320 Speaker 2: overall supermarket sales. 55 00:02:20,480 --> 00:02:24,519 Speaker 1: So clearly the Coals faithful want value and quality. 56 00:02:24,080 --> 00:02:26,320 Speaker 2: And bemaned For Coals, this means they can avoid paying 57 00:02:26,360 --> 00:02:28,320 Speaker 2: the markups on third party brands. 58 00:02:28,440 --> 00:02:31,320 Speaker 1: Yep, this allows them to offer products at competitive prices 59 00:02:31,400 --> 00:02:34,200 Speaker 1: while also maintaining healthier profit margins. 60 00:02:33,919 --> 00:02:35,880 Speaker 2: And b manned. Coles an't the only company to see 61 00:02:35,919 --> 00:02:37,760 Speaker 2: a spike in private label purchases. 62 00:02:37,919 --> 00:02:40,799 Speaker 1: Nope. According to Nielsen, forty six percent of Australians say 63 00:02:40,800 --> 00:02:43,960 Speaker 1: they're buying more private label products than ever before. 64 00:02:43,600 --> 00:02:45,959 Speaker 2: In particular people under the age of forty three. 65 00:02:46,080 --> 00:02:49,320 Speaker 1: So clearly Coles is capitalized on the opportunities created by 66 00:02:49,480 --> 00:02:51,200 Speaker 1: the rising demand of these products. 67 00:02:51,280 --> 00:02:54,000 Speaker 2: Turns out those under forty three are all suckers for 68 00:02:54,080 --> 00:02:56,519 Speaker 2: a good deal wrapped in a chic legel. 69 00:02:56,360 --> 00:02:59,720 Speaker 1: For our second story. Pet Circle, one of Australia's largest 70 00:02:59,720 --> 00:03:02,280 Speaker 1: online pet stores, has seen its sales jump to nearly 71 00:03:02,320 --> 00:03:05,520 Speaker 1: four hundred million bucks, but it is burning cash to 72 00:03:05,560 --> 00:03:05,919 Speaker 1: get there. 73 00:03:06,040 --> 00:03:08,240 Speaker 2: Wolf. That is all I gotta say about this one. 74 00:03:08,280 --> 00:03:09,120 Speaker 2: So tell me we'll be. 75 00:03:09,080 --> 00:03:11,480 Speaker 1: Man well, Jazzy Boy. Pet Circle was founded in twenty 76 00:03:11,480 --> 00:03:14,880 Speaker 1: eleven by an investment banker and data scientist. 77 00:03:14,480 --> 00:03:16,840 Speaker 2: The old dynamic duo of the pet industry. 78 00:03:17,800 --> 00:03:20,360 Speaker 1: Pet Circles started by offering everything you're too lazy to 79 00:03:20,360 --> 00:03:21,760 Speaker 1: get from your local pet store. 80 00:03:21,560 --> 00:03:24,320 Speaker 2: Inky kibbles, your squeaky toys, your fully treatments. 81 00:03:24,440 --> 00:03:26,080 Speaker 1: And it really has grown since twenty eleven. 82 00:03:26,160 --> 00:03:28,480 Speaker 2: Yeah. In fact, a man ten years later, pet Circles 83 00:03:28,520 --> 00:03:31,000 Speaker 2: valued at more than one billion dollars. 84 00:03:30,560 --> 00:03:34,040 Speaker 1: And despite remaining a private company, its latest accounts show 85 00:03:34,080 --> 00:03:36,720 Speaker 1: that revenue has jumped to three hundred and eighty five mil, 86 00:03:36,880 --> 00:03:38,080 Speaker 1: and that was in twenty twenty four. 87 00:03:38,200 --> 00:03:41,000 Speaker 2: While sales went up, the man profits did the opposite. 88 00:03:41,200 --> 00:03:43,840 Speaker 1: In fact, it's losses jumped over twenty six mil, or 89 00:03:43,880 --> 00:03:46,200 Speaker 1: more than a twenty three percent jump from last year. 90 00:03:46,240 --> 00:03:48,920 Speaker 2: But be manned. Despite the growing loss Pet Circle reckons 91 00:03:48,960 --> 00:03:51,960 Speaker 2: its new pharmacy and insurance arms will drive growth and 92 00:03:52,080 --> 00:03:53,600 Speaker 2: will drive profit, a path. 93 00:03:53,520 --> 00:03:55,840 Speaker 1: Well travel by other retailers. 94 00:03:55,880 --> 00:03:57,160 Speaker 2: So what is the key learning here? 95 00:03:57,280 --> 00:04:00,720 Speaker 1: Retailers are increasingly using their very loyal cut customer bases 96 00:04:00,760 --> 00:04:03,360 Speaker 1: to shift into higher margin vertical. 97 00:04:03,440 --> 00:04:06,000 Speaker 2: For pet circle, we'd be talking things like insurance and 98 00:04:06,080 --> 00:04:08,160 Speaker 2: pharmacy and vet consultations as well. 99 00:04:08,200 --> 00:04:11,240 Speaker 1: Well. Stables like pet food keep customers coming back regularly. 100 00:04:11,320 --> 00:04:14,279 Speaker 1: They don't offer much room for a whole heap of profit. 101 00:04:14,040 --> 00:04:16,400 Speaker 2: But once a customer trusts your brand, it's easier to 102 00:04:16,440 --> 00:04:20,080 Speaker 2: cross sell offerings with better margins. So by white labeling 103 00:04:20,120 --> 00:04:23,280 Speaker 2: these offerings from other providers, companies can boost their margin 104 00:04:23,400 --> 00:04:26,200 Speaker 2: without needing to invest significantly in the underlying product. 105 00:04:26,240 --> 00:04:27,760 Speaker 1: We've seen other companies do this as well. 106 00:04:27,880 --> 00:04:30,400 Speaker 2: Yep, our good friend Coles white labeled Coals Mobile through 107 00:04:30,400 --> 00:04:31,480 Speaker 2: a partnership with Optors. 108 00:04:31,560 --> 00:04:33,960 Speaker 1: They've white labeled insurance to a partnership with Auto and 109 00:04:34,040 --> 00:04:35,600 Speaker 1: General Insurance. 110 00:04:35,080 --> 00:04:37,080 Speaker 2: Company, and the white labeled credit cards with that. 111 00:04:37,320 --> 00:04:40,400 Speaker 1: So while pet circles currently fetching losses, the real game 112 00:04:40,520 --> 00:04:41,560 Speaker 1: is long term loyalty. 113 00:04:42,000 --> 00:04:44,880 Speaker 2: For our third and final story, these Are has announced 114 00:04:44,880 --> 00:04:47,880 Speaker 2: it's teaming up with open Ai and Microsoft's co Pilot 115 00:04:47,920 --> 00:04:50,320 Speaker 2: to let AI run your payments. 116 00:04:50,400 --> 00:04:52,640 Speaker 1: You know, I wouldn't be opposed to AI booking my 117 00:04:53,000 --> 00:04:55,480 Speaker 1: travel flights, Juzzi boy, But tell me more. 118 00:04:55,520 --> 00:04:58,200 Speaker 2: Okay. So this is the global payments giant see processing 119 00:04:58,200 --> 00:04:59,880 Speaker 2: payments since nineteen fifty eight. 120 00:05:00,080 --> 00:05:03,760 Speaker 1: In fact, it processes over two hundred billion transactions each 121 00:05:03,800 --> 00:05:07,120 Speaker 1: and every year. Yep. But now Visa has leaned into 122 00:05:07,120 --> 00:05:10,159 Speaker 1: something very radical for this you know, conservative company. 123 00:05:10,560 --> 00:05:13,880 Speaker 2: It's partnered with leading AI platforms like OpenAI and Microsoft 124 00:05:13,960 --> 00:05:17,479 Speaker 2: and even Samsung to roll out what they call intelligent. 125 00:05:16,960 --> 00:05:19,799 Speaker 1: Commerce, which is effectively agentic AI. 126 00:05:19,960 --> 00:05:22,640 Speaker 2: And be man with all that mumbo jumbo that means, well. 127 00:05:22,560 --> 00:05:24,680 Speaker 1: Let me put it this way for you, jazy boy. 128 00:05:24,720 --> 00:05:28,120 Speaker 1: I'm like older AI which just suggested options. This AI 129 00:05:28,279 --> 00:05:30,800 Speaker 1: can complete the purchase as well. 130 00:05:30,560 --> 00:05:32,799 Speaker 2: Like organize a weekend away in Melbourne, and the AI 131 00:05:32,880 --> 00:05:34,120 Speaker 2: will do the whole thing. 132 00:05:34,040 --> 00:05:36,720 Speaker 1: Your flight to your hotel, your dinner bookings, even the ubers. 133 00:05:36,400 --> 00:05:38,679 Speaker 2: And as the user b man, you choose levels of control. 134 00:05:38,760 --> 00:05:40,680 Speaker 2: You might want to approve every step of the journey 135 00:05:40,760 --> 00:05:42,680 Speaker 2: or let AI go full autopilot. 136 00:05:42,720 --> 00:05:45,960 Speaker 1: And this agentic AI is expected to go live in 137 00:05:46,000 --> 00:05:47,320 Speaker 1: the quote near future. 138 00:05:48,000 --> 00:05:50,960 Speaker 2: We love a vague and ambiguous roadmap to get you excited. 139 00:05:51,040 --> 00:05:52,560 Speaker 1: We do, so what is the key learning here? 140 00:05:52,640 --> 00:05:55,839 Speaker 2: Agentic ai is shifting AI from being a helpful assistant 141 00:05:55,880 --> 00:05:58,480 Speaker 2: to an almost full blown concierge. 142 00:05:58,600 --> 00:06:00,880 Speaker 1: For the last couple of years, AI I could suggest 143 00:06:01,000 --> 00:06:01,760 Speaker 1: what to do. 144 00:06:01,640 --> 00:06:04,320 Speaker 2: He's had to write an email or appeal a parking infringement. 145 00:06:04,560 --> 00:06:07,240 Speaker 1: But with agentic ai, it can actually do things for you. 146 00:06:07,240 --> 00:06:09,800 Speaker 2: Like reschedule your dentist appointment for the third time and 147 00:06:09,800 --> 00:06:12,120 Speaker 2: b man. This new partnership with Visa is so big 148 00:06:12,160 --> 00:06:15,440 Speaker 2: because these AI agents can actually engage in your financial 149 00:06:15,480 --> 00:06:18,320 Speaker 2: life as well. In fact, the global market for agentic 150 00:06:18,360 --> 00:06:21,400 Speaker 2: ai is expected to reach over seventy billion US dollars 151 00:06:21,440 --> 00:06:24,320 Speaker 2: per year by twenty thirty, which is a nearly forty 152 00:06:24,320 --> 00:06:27,120 Speaker 2: three percent growth year on year from now until then. 153 00:06:27,240 --> 00:06:29,039 Speaker 1: So jazy boy, The age of sitting back while your 154 00:06:29,080 --> 00:06:32,560 Speaker 1: AI planned your life and spending has officially begun in 155 00:06:32,600 --> 00:06:33,440 Speaker 1: the near future. 156 00:06:34,360 --> 00:06:36,160 Speaker 2: But dam if you've been listening to the pod all 157 00:06:36,160 --> 00:06:38,400 Speaker 2: week and you want to test your knowledge on finance 158 00:06:38,440 --> 00:06:40,320 Speaker 2: and business, there is one place to be. It's in 159 00:06:40,360 --> 00:06:42,400 Speaker 2: the fluck up today with quick sticks. Make sure to 160 00:06:42,400 --> 00:06:44,960 Speaker 2: turn your notipatients on because you could win fifty bucks today. 161 00:06:45,080 --> 00:06:47,719 Speaker 2: Thanks for listening, and we'll see you on Monday.