1 00:00:05,120 --> 00:00:07,720 Speaker 1: This is what the Flux. I'm Brett and I'm Justin 2 00:00:07,800 --> 00:00:10,000 Speaker 1: and an undated twenty sixth of Bay Jazzy Boy. 3 00:00:10,080 --> 00:00:12,760 Speaker 2: Telstra has quietly removed some of the claims that made 4 00:00:12,760 --> 00:00:16,080 Speaker 2: about it to mobile coverage because apparently those claims were overstated. 5 00:00:16,640 --> 00:00:19,560 Speaker 2: You know how Telstra claims to provide coverage to ninety 6 00:00:19,560 --> 00:00:22,320 Speaker 2: eight point eight percent of Australias. Well, that coverage isn't 7 00:00:22,320 --> 00:00:25,760 Speaker 2: available on mobile phones, only on antenna's, which as far 8 00:00:25,760 --> 00:00:30,040 Speaker 2: as I know, nobody uses. So now Telster's wholesale customers 9 00:00:30,080 --> 00:00:32,840 Speaker 2: like Audin Woolworth's have all pulled the reference as well. 10 00:00:32,880 --> 00:00:35,600 Speaker 1: Pull out my antenna right now, be man, flux Man. 11 00:00:35,640 --> 00:00:38,680 Speaker 3: Every single year you probably pay a loyalty tax to 12 00:00:38,720 --> 00:00:41,680 Speaker 3: your bank, to your utilities provider, and even your internet 13 00:00:41,680 --> 00:00:43,640 Speaker 3: as well. That's because every year you stay with the 14 00:00:43,680 --> 00:00:46,160 Speaker 3: same provider, they jack up the prices. In this month's 15 00:00:46,200 --> 00:00:48,040 Speaker 3: Academy Getting a better Deal, we did you how to 16 00:00:48,080 --> 00:00:50,559 Speaker 3: stand up for yourself and save some serious cash. Make 17 00:00:50,600 --> 00:00:52,280 Speaker 3: sure to download the Flux app and check out the 18 00:00:52,320 --> 00:00:53,160 Speaker 3: academy this month. 19 00:00:53,240 --> 00:00:56,520 Speaker 2: Three high probability stories Today Juzzy Boy, Let's do it 20 00:00:56,560 --> 00:00:59,640 Speaker 2: for our first. Meyer has worn that its second half 21 00:00:59,720 --> 00:01:01,880 Speaker 2: is off to a bit of a wonky start and 22 00:01:01,920 --> 00:01:04,959 Speaker 2: its nine hundred million dollar acquisition ain't delivering the goods. 23 00:01:04,959 --> 00:01:07,280 Speaker 1: Thought these two would still be in the honeymoon period, Piphann, 24 00:01:07,319 --> 00:01:08,280 Speaker 1: what is going on here? 25 00:01:08,319 --> 00:01:11,240 Speaker 2: Well, Mayer is one of Australia's oldest department stores, dating 26 00:01:11,280 --> 00:01:13,640 Speaker 2: back to nineteen hundred, pre federation. 27 00:01:13,840 --> 00:01:16,319 Speaker 1: Abi Man. You may remember that earlier this year, Maya 28 00:01:16,360 --> 00:01:20,279 Speaker 1: acquired apparel brands from Premier Investments for nine hundred million 29 00:01:20,319 --> 00:01:21,600 Speaker 1: baccarunis I do so. 30 00:01:21,680 --> 00:01:24,600 Speaker 2: Now they own over seven hundred retail stores with brands 31 00:01:24,640 --> 00:01:28,920 Speaker 2: like Just Jean's, Dotty, Jjy's, All Your Favorites uh huh, 32 00:01:28,920 --> 00:01:31,480 Speaker 2: and Jazyboy. Now, just sixteen weeks into the year, the 33 00:01:31,520 --> 00:01:32,640 Speaker 2: wedding glow is fading. 34 00:01:32,840 --> 00:01:35,800 Speaker 1: Ye. Well, Maya's department store sales were up just one 35 00:01:35,800 --> 00:01:38,759 Speaker 1: point nine percent. It's new retailers from apparel brands saw 36 00:01:38,800 --> 00:01:40,679 Speaker 1: their revenue all three point nine percent. 37 00:01:40,880 --> 00:01:44,360 Speaker 2: Not exactly love at first profit and lost statement and. 38 00:01:44,360 --> 00:01:47,119 Speaker 1: B Man Meya blamed everything under the sun for their 39 00:01:47,160 --> 00:01:48,000 Speaker 1: slower performance. 40 00:01:48,120 --> 00:01:50,520 Speaker 2: Well, it was cost of living pressures. 41 00:01:50,160 --> 00:01:51,880 Speaker 1: Then it was the May federal election. 42 00:01:51,840 --> 00:01:54,960 Speaker 2: Then it was intense discounting, and finally. 43 00:01:54,600 --> 00:01:56,920 Speaker 1: It was the issues with their warehouse and logistics, which 44 00:01:57,040 --> 00:01:58,080 Speaker 1: still isn't resultd. 45 00:01:58,080 --> 00:02:01,200 Speaker 2: So investors are now watching loosely to see if Maya's 46 00:02:01,240 --> 00:02:04,120 Speaker 2: nine hundred million dollar acquisition strategy will pay off. 47 00:02:04,160 --> 00:02:06,560 Speaker 1: And it's not so easy to ensure a smooth transition 48 00:02:06,720 --> 00:02:09,440 Speaker 1: when your whole warehouse system is falling to pieces behind 49 00:02:09,480 --> 00:02:09,920 Speaker 1: the scenes. 50 00:02:10,200 --> 00:02:11,399 Speaker 2: So what is the key learning here? 51 00:02:11,520 --> 00:02:14,200 Speaker 1: Retail might look flashy on the outside, behind the scenes, 52 00:02:14,240 --> 00:02:15,960 Speaker 1: it's all about getting the basics. 53 00:02:15,639 --> 00:02:18,200 Speaker 2: Right, and one of the most important basics a warehouse 54 00:02:18,360 --> 00:02:19,320 Speaker 2: that actually works. 55 00:02:19,600 --> 00:02:22,639 Speaker 1: You see, b Man Maya's fancy new distribution center was 56 00:02:22,680 --> 00:02:25,120 Speaker 1: meant to be a game changer, but instead it has 57 00:02:25,200 --> 00:02:26,440 Speaker 1: been a total disaster. 58 00:02:26,560 --> 00:02:28,560 Speaker 2: They've had issues with stock trapped in. 59 00:02:28,560 --> 00:02:31,480 Speaker 1: The warehouse AKAA, the Bermuda triangle of stock. They've had 60 00:02:31,560 --> 00:02:34,880 Speaker 1: delayed deliveries, and they've had to resort to online orders 61 00:02:35,000 --> 00:02:38,480 Speaker 1: being picked by instore Star from instore Stock and Juzyboit. 62 00:02:38,560 --> 00:02:41,800 Speaker 2: Maya reckons those issues have already cost them about twelve 63 00:02:41,880 --> 00:02:44,120 Speaker 2: million dollars in lost earnings, and that's just for the 64 00:02:44,120 --> 00:02:45,840 Speaker 2: first half of twenty twenty five alone. 65 00:02:45,880 --> 00:02:48,560 Speaker 1: And when you're trying to integrate a big acquisition like 66 00:02:48,760 --> 00:02:51,840 Speaker 1: seven hundred news stores as well. A bungled warehouse is 67 00:02:51,880 --> 00:02:54,480 Speaker 1: the last thing you need for our second story. 68 00:02:54,639 --> 00:02:57,720 Speaker 2: Kmart's new boss wants to double its sales to twenty 69 00:02:57,880 --> 00:03:01,120 Speaker 2: billion dollars and she is betting big on beauty, younger 70 00:03:01,160 --> 00:03:03,480 Speaker 2: shoppers and Anko in order to get there. 71 00:03:03,480 --> 00:03:06,160 Speaker 1: God bless Anko. And it's cheap, cheap air fryers. So 72 00:03:06,320 --> 00:03:06,839 Speaker 1: tell me more. 73 00:03:06,919 --> 00:03:10,360 Speaker 2: Well, Kmart is actually owned by the Kmart Group, which 74 00:03:10,400 --> 00:03:13,160 Speaker 2: also runs Target and the Ancho brand. 75 00:03:12,880 --> 00:03:15,600 Speaker 1: And Kmart Group is actually owned by West Farmers, the 76 00:03:15,639 --> 00:03:18,280 Speaker 1: group that also owns Bunning's office works and a whole 77 00:03:18,280 --> 00:03:18,679 Speaker 1: lot more. 78 00:03:18,720 --> 00:03:21,160 Speaker 2: Now, jes it wait. West Farmer's introduced a new managing 79 00:03:21,160 --> 00:03:23,640 Speaker 2: director for the Kmart Group in April this year, and 80 00:03:23,680 --> 00:03:24,680 Speaker 2: she came in swinging. 81 00:03:24,919 --> 00:03:28,160 Speaker 1: She announced grand plans to double kmart sales to twenty 82 00:03:28,160 --> 00:03:29,760 Speaker 1: billion dollars in ten years. 83 00:03:29,960 --> 00:03:33,120 Speaker 2: And okay, how is she planning to grow Kmart's revenue. 84 00:03:33,160 --> 00:03:35,960 Speaker 1: Well, there's the standard stuff like expanding its online sales, 85 00:03:36,080 --> 00:03:39,320 Speaker 1: focusing on younger shoppers, but one of the key drivers 86 00:03:39,400 --> 00:03:42,160 Speaker 1: is expanding internationally. And be man, we're not talking about 87 00:03:42,280 --> 00:03:43,920 Speaker 1: Kmart expanding internationally. 88 00:03:44,080 --> 00:03:47,840 Speaker 2: I know, we're talking Anko itself as standalone brand. 89 00:03:47,960 --> 00:03:50,360 Speaker 1: In fact, Beman Andko is already planning to have five 90 00:03:50,440 --> 00:03:52,960 Speaker 1: standalone stores in the Philippines by the end of this 91 00:03:53,040 --> 00:03:56,440 Speaker 1: year and then also expand NCO with partnerships. But be Man, 92 00:03:56,600 --> 00:03:59,600 Speaker 1: the juiciest part is that Kmart's new MD doesn't just 93 00:03:59,640 --> 00:04:00,960 Speaker 1: want twin tenty billion revenue. 94 00:04:01,040 --> 00:04:04,640 Speaker 2: Nope, she's also planning for two billion dollars in profit two, 95 00:04:04,760 --> 00:04:07,240 Speaker 2: which is a ten percent profit margin. Though what is 96 00:04:07,280 --> 00:04:09,400 Speaker 2: the key learning here, Well, in retail, it's not just 97 00:04:09,400 --> 00:04:11,880 Speaker 2: about how much stuff you sell, it's how fat your 98 00:04:11,960 --> 00:04:12,680 Speaker 2: margin is. 99 00:04:12,840 --> 00:04:15,800 Speaker 1: Most big retailers run on razor thin margins. 100 00:04:15,840 --> 00:04:18,520 Speaker 2: For example, Coal's profit margin was two point six percent 101 00:04:18,680 --> 00:04:19,160 Speaker 2: last year. 102 00:04:19,279 --> 00:04:21,000 Speaker 1: JB Hygefire's was four point six percent. 103 00:04:21,200 --> 00:04:24,120 Speaker 2: Meyer's profit was around one point six percent last year. 104 00:04:24,120 --> 00:04:26,400 Speaker 1: The key to bigger profit margins, b Man home brands 105 00:04:26,680 --> 00:04:27,160 Speaker 1: like Ancho. 106 00:04:27,279 --> 00:04:30,640 Speaker 2: It means that Kmart doesn't have to share profits with suppliers. 107 00:04:30,080 --> 00:04:33,000 Speaker 1: And by selling Ancho overseas, they aiming to scale those 108 00:04:33,040 --> 00:04:35,000 Speaker 1: higher margin products globally. 109 00:04:34,560 --> 00:04:37,839 Speaker 2: And joseybod Kmart isn't only pushing Ancho overseas. 110 00:04:37,920 --> 00:04:40,400 Speaker 1: No. Ancho now makes up eighty five percent of kmart 111 00:04:40,520 --> 00:04:41,640 Speaker 1: sales in Australia too. 112 00:04:41,760 --> 00:04:44,440 Speaker 2: In fact, it sells over one billion items a year. 113 00:04:44,720 --> 00:04:47,919 Speaker 1: That's a whole lot of collapsible storage cubes and ring lights. 114 00:04:47,960 --> 00:04:50,560 Speaker 2: So with Ancho leading the charge for Kmart, it's not 115 00:04:50,600 --> 00:04:53,920 Speaker 2: only helping Kmart grow it's revenue, but also it's profits. 116 00:04:53,960 --> 00:04:57,040 Speaker 1: For our third and final story, open ai just spent 117 00:04:57,120 --> 00:05:00,400 Speaker 1: six and a half billion US dollars acquiring us up 118 00:05:00,480 --> 00:05:04,000 Speaker 1: with no product and no revenue, but everyone's excited. Big 119 00:05:04,160 --> 00:05:07,080 Speaker 1: bold call by open Ai. So juzyboy, what is going 120 00:05:07,120 --> 00:05:09,760 Speaker 1: on here? Let's take a stroll down gadget, memory Lane, 121 00:05:09,920 --> 00:05:10,520 Speaker 1: go on, the. 122 00:05:10,480 --> 00:05:14,400 Speaker 2: iPhone, the Apple Watch, the iPad, all quite iconic gadgets 123 00:05:14,440 --> 00:05:14,920 Speaker 2: and all. 124 00:05:14,760 --> 00:05:17,280 Speaker 1: Of these were designed by one man. Sir Johnny I've 125 00:05:17,480 --> 00:05:20,280 Speaker 1: aka Steve Jobs spiritual partner. 126 00:05:20,600 --> 00:05:24,160 Speaker 2: Yeah, he's been considered the guru of smartphone and tech 127 00:05:24,360 --> 00:05:27,400 Speaker 2: design and Biman Ives left Apple in twenty nineteen and 128 00:05:27,480 --> 00:05:30,240 Speaker 2: started a company called Io last year. And be man, 129 00:05:30,279 --> 00:05:31,480 Speaker 2: it's not entirely. 130 00:05:31,120 --> 00:05:33,520 Speaker 1: Clear what Io have or haven't built so far, but 131 00:05:33,600 --> 00:05:36,360 Speaker 1: now open ai will acquire Io in a six and 132 00:05:36,400 --> 00:05:38,600 Speaker 1: a half billion US dollar all stock deal. 133 00:05:38,680 --> 00:05:41,440 Speaker 2: And juzy boy, this is open AI's biggest acquisition ever. 134 00:05:41,560 --> 00:05:44,120 Speaker 1: Ives and the open AICEO say they're working on a 135 00:05:44,240 --> 00:05:47,440 Speaker 1: family of devices for the aiage. 136 00:05:46,880 --> 00:05:49,280 Speaker 2: And the first product is expected next year. 137 00:05:49,320 --> 00:05:51,200 Speaker 1: And while we don't have any details on the product, 138 00:05:51,240 --> 00:05:53,480 Speaker 1: we do know that open ai will bring over fifty 139 00:05:53,480 --> 00:05:56,320 Speaker 1: five engineers and designers from Io. 140 00:05:56,040 --> 00:05:58,920 Speaker 2: With many who help shape Apple's devices. So what is 141 00:05:58,960 --> 00:06:01,120 Speaker 2: the key learning here and Acqua higher is when a 142 00:06:01,160 --> 00:06:04,560 Speaker 2: company buys another company not just for its products, but 143 00:06:04,600 --> 00:06:05,680 Speaker 2: for its people. 144 00:06:05,360 --> 00:06:07,760 Speaker 1: It's become pretty comedy tech, especially when you need a 145 00:06:07,760 --> 00:06:10,520 Speaker 1: shortcut building a top tier team. In this case, b Man, 146 00:06:10,560 --> 00:06:12,680 Speaker 1: open Ai is buying access to one of the most 147 00:06:12,880 --> 00:06:15,920 Speaker 1: iconic industrial designers of all time, and that's a huge 148 00:06:15,920 --> 00:06:19,919 Speaker 1: advantage when trying to launch AI powered hardware devices. 149 00:06:19,520 --> 00:06:22,640 Speaker 2: Particularly because open ai doesn't have that skill set right now. 150 00:06:22,720 --> 00:06:25,800 Speaker 1: That alone sent Apple share price down two point three percent. 151 00:06:25,960 --> 00:06:29,280 Speaker 2: Investors are clearly thinking, wait, what if this new crew 152 00:06:29,320 --> 00:06:32,159 Speaker 2: actually does build the next iPhone but for AI. So 153 00:06:32,279 --> 00:06:34,680 Speaker 2: only time will tell whether this acquisition was a stroke 154 00:06:34,720 --> 00:06:38,200 Speaker 2: of genius or making a big bet on potential. 155 00:06:38,200 --> 00:06:40,240 Speaker 1: Alan Flex AMM If you feel like you're getting ripped 156 00:06:40,240 --> 00:06:42,520 Speaker 1: off left, right and center from an Internet provider, a 157 00:06:42,560 --> 00:06:45,360 Speaker 1: phone provider, even your lender, the Flex Academy this month 158 00:06:45,520 --> 00:06:47,640 Speaker 1: is your Bible. It'll give you the scripts on how 159 00:06:47,680 --> 00:06:49,680 Speaker 1: to communicate with them, how to negotiate with them, and 160 00:06:49,680 --> 00:06:51,440 Speaker 1: how to get a better deal. Make sure to download 161 00:06:51,440 --> 00:06:53,040 Speaker 1: the Flux app and check out in the Academy. 162 00:06:53,120 --> 00:06:55,480 Speaker 2: Thanks for listening and we'll see you on Wednesday.