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Speaker 1: This is what the Flux. I'm Brett and Justin and

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Speaker 1: it's Friday, the fifth of December.

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Speaker 2: It's fair to say that the palms of one Australian small.

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Speaker 1: Retailer are very sweaty right now.

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Speaker 2: Get these lawyers for Eminem aka mister Slimshady are taking

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Speaker 2: an Australian beach brand to court. The company's name is

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Speaker 2: swim Shady, and Eminem's lawyers claim that the business name

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Speaker 2: deceives customers if they're thinking it's beach equipment is linked

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Speaker 2: to Eminem And personally, I'm just waiting for Eminem's next

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Speaker 2: disc track of this swimwear.

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Speaker 1: Brand, Eminem of the Beach. Can't quite put them together

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Speaker 1: in my mind. Be Man, not at all. Another Friday

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Speaker 1: eight means another fifty bucks that we're giving away to

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Speaker 1: one lucky member of the Flux community. All we've got

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Speaker 1: to do is have the Flux app downloaded and your

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Speaker 1: notifications turned on. And if you answer that three business

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Speaker 1: and finance questions correctly and first, you win the fifty

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Speaker 1: bucks this weekend. So make sure you download the Flux

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Speaker 1: apup and have your notifications turned on to win quick

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Speaker 1: six Today.

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Speaker 2: Three delightful stories Today juzzy boy, let's do it for

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Speaker 2: our first. X and M Australia is facing a thirty

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Speaker 2: five million dollar bill for unpaid wages to Australian staff

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Speaker 2: as it starts to quietly shut down its underperforming stores.

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Speaker 1: Okay, scissars our b man. H and M is taking

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Speaker 1: a big fat trim, So tell me all so.

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Speaker 2: H and M is the Swedish fast fashion giant that

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Speaker 2: was founded back in nineteen forty seven and now has

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Speaker 2: over four thousand stores in over seventy five countries.

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Speaker 1: Launched in Australia back in twenty fourteen with ques around

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Speaker 1: the block.

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Speaker 2: I remember that it's first Melbostor had fifteen thousand people

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Speaker 2: walk through on its opening day.

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Speaker 1: But Beman. After years of being the hot new thing

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Speaker 1: in fast fashion, H and M has seen its sales

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Speaker 1: dip over the past year.

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Speaker 2: Yep, sales drop four percent over the last year to

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Speaker 2: three hundred and forty million bakkarunis.

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Speaker 1: And now throw on top of that, H and M

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Speaker 1: Australia is under investigation by the Fair Work Onbardsmen. YEP.

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Speaker 2: The Omberdsman alleges that H and M underpaid up to

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Speaker 2: fifteen hundred staff a man, I.

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Speaker 1: Do you think that's bad? But if it wasn't bad enough,

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Speaker 1: H and M is now rationalizing its stores too, down

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Speaker 1: from fifty stores to just thirty four over the past

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Speaker 1: couple of years. So what is the key learning here?

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Speaker 2: Store footprint rationalization is a pretty fancy way of saying

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Speaker 2: that a retailer is trimming locations to match demand.

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Speaker 1: For years, be man. H and M expanded quickly across

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Speaker 1: Australia because of its foot traffic and sales allowed them

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Speaker 1: to have that big physical presence, the juzzy boy.

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Speaker 2: As revenue soft ferns and cost climb, those same stores

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Speaker 2: become expensive to operate.

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Speaker 1: Yeah. H and M cutting nearly a third of its

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Speaker 1: Australian stores shows quite the strategic shift outseas the Australian

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Speaker 1: market fewer large format stores and potentially more focus on

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Speaker 1: e commerce and they man, it seems to be slowly

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Speaker 1: and slightly working well.

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Speaker 2: Last year, H and M Australia had a profit margin

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Speaker 2: of negative one percent.

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Speaker 1: This year it flipped a two point five percent thanks.

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Speaker 2: So while it's not fireworks, any move up is a

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Speaker 2: win for H and M.

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Speaker 1: Right now, For our second story, Australia's top electric vehicles

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Speaker 1: have all failed in real world testing, with some models

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Speaker 1: dravely up to thirty percent less than their advertised battery range.

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Speaker 2: No surprise that ev buys in Australia a little bit

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Speaker 2: edgy about electric vehicles.

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Speaker 1: Juzzyboy, So go on. So we know that electric vehicles

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Speaker 1: really kicked off in Australia back in December twenty fourteen

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Speaker 1: when Tesla made a big song in a dance. Yeah.

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Speaker 2: Since then, we've seen a whole host of electric vehicle

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Speaker 2: companies land and expand in Australia.

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Speaker 1: We'd been talking Tesla, of course, but also byd Polestar

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Speaker 1: and many many more.

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Speaker 2: But now the Australian Automobile Association has done some testing

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Speaker 2: on these evs and juzy boy, guess what they found

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Speaker 2: That none of the nine tested actually reached their advertised range.

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Speaker 1: In fact, MG's MG four was actually the worst performer.

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Speaker 1: It's cut drove thirty one percent shorter distance that its

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Speaker 1: battery range promise. The Tesla model why perform the best,

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Speaker 1: missing its promise range by just three percent, and Beman Well.

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Speaker 1: Demand for EV's continue to grow in Australia. Range anxiety

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Speaker 1: is still one of the major obstacles ol, So what's

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Speaker 1: the key learning here? Nothing dense a fast growing market

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Speaker 1: like a gap between what's promised and what is delivered.

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Speaker 2: Ooh, you went there, Juzzy boy. Range anxiety is still

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Speaker 2: the biggest psychological hurdle stopping many Australians from actually going electric.

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Speaker 1: Yeah, it's that little voice in your head saying will

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Speaker 1: I actually make it home with the battery right?

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Speaker 2: Or will I end up stranded next to a BP

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Speaker 2: eating a cornetto while I wait for my car to

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Speaker 2: be towed.

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Speaker 1: But babe, man, the demand for electric vehicles is real yep.

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Speaker 2: The Australian Automobile Association reported that in the September quarter,

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Speaker 2: battery electric vehicles made up almost ten percent of all

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Speaker 2: new car sales.

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Speaker 1: Which is the highest proportion on record. The Judge boy.

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Speaker 2: When advertised battery rangers don't match real world performance, it

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Speaker 2: causes the take up of electric cars to slow down.

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Speaker 1: So be man. If eat makers and regulators want more

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Speaker 1: Azzies to feel comfortable switching to electric, they need to

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Speaker 1: close the gap between what's promised and what's delivered.

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Speaker 2: For our third and final story, the Magnum ice cream

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Speaker 2: Company is demerging from its parent company Unilever and will

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Speaker 2: officially be known as the largest ice cream company in

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Speaker 2: the world.

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Speaker 1: Do not touch the Magnum, Ago Beeman, do not touch it,

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Speaker 1: hands off it. What is the scoop here?

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Speaker 2: Well Streets, cornetto ben and Jerry's and Magnum are four

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Speaker 2: of the top ice cream brands in the world.

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Speaker 1: Judge, boy, Am I right? You're right? And they're all

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Speaker 1: owned by one big company.

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Speaker 2: Well, since twenty twenty, you know, ever have kind of

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Speaker 2: become the underlaws so of the ice cream business.

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Speaker 1: Yea, they've been generating over seven point nine billion euros

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Speaker 1: just selling frozen snacks.

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Speaker 2: Except Unilever also owns brands like Dove Beauty and Rexona

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Speaker 2: deodorant and Vasoline.

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Speaker 1: I believe a completely different supermarket alway man.

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Speaker 2: Yep, partly why Unilever has decided to demerge their ice

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Speaker 2: cream family.

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Speaker 1: Soon, the Magnum ice Cream Company will independently list on

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Speaker 1: the Urinext Amsterdam, the London Stock Exchange and the New

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Speaker 1: York Stock Exchange, and as part of this de merger,

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Speaker 1: Unilever will retain a minority twenty percent stake to help

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Speaker 1: with the transition, but Magnum will officially become the new

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Speaker 1: ice cream leaders of the world, which means they will

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Speaker 1: own over one fifth of the world's global ice cream

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Speaker 1: market as part of this company spin off. Wow, So

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Speaker 1: what is the key leading here?

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Speaker 2: A company spin off is when a big company takes

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Speaker 2: one part of the business and turns it into a separate,

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Speaker 2: independent company.

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Speaker 1: With its own name, its own leadership, and its own shareholder.

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Speaker 2: Yep, it's basically the corporate version of a grown up

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Speaker 2: child moving out of home.

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Speaker 1: But Ben Man, why is Unilever exiting the ice cream business?

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Speaker 2: Well, selling ice cream is a completely different game to

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Speaker 2: selling beauty and personal care products.

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Speaker 1: Think different supply chains, different consumer trends, different growth strategies too.

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Speaker 2: So separating the two businesses will make it easier to

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Speaker 2: manage and give each company a better chance to innovate

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Speaker 2: in their own category.

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Speaker 1: And man, this is pretty common for publicly traded companies

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Speaker 1: to merge and emerge, kind of like that's going out

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Speaker 1: of fashion.

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Speaker 2: Remember when EBA used to earn PayPal before they went

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Speaker 2: their separate ways in twenty fifteen.

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Speaker 1: Since then, PayPal has grown into one of the most

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Speaker 1: successful fintech companies in the whole wide world.

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Speaker 2: So, Jose boy, it's crunch time for Magnum as investors

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Speaker 2: watch what they can serve up as an independent company.

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Speaker 1: Fox Am, if you've been listening to all the pod

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Speaker 1: stories this week and the Fox app, you are in

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Speaker 1: a prime position twin fifty bucks today. All you've got

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Speaker 1: to do is download the Flux apps, had your notifications

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Speaker 1: turned on, and answer the three business and finance questions

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Speaker 1: correctly to make sure you download the Flux app to

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Speaker 1: win fifty bucks today.

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Speaker 2: Thanks for listening and we'll see you on a Monday