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

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Speaker 1: and it's Monday, the twenty fourth of March, doesy boy.

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Speaker 2: The average basket size of online shopping orders has dropped

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Speaker 2: to a new ten year low, and that is according

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Speaker 2: to Australia Posts.

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Speaker 1: They would know. I get this.

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Speaker 2: The basket size has dropped to ninety five buck per order,

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Speaker 2: which is lower than any other year recorded and that

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Speaker 2: doesn't even adjust for inflation. So Australia Post reckons that

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Speaker 2: consumer spending will start to look more normal in the

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Speaker 2: back half of twenty twenty five.

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Speaker 1: Seeing Fox Am, have you had the term dollar cost averaging.

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Speaker 1: It's an investment strategy that relies on consistent investments over

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Speaker 1: a period of time. And we cover the pros and

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Speaker 1: cons of dollar cost investing in the Flux app this

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Speaker 1: week and it is an absolute belt out. So if

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Speaker 1: you're interested investing in twenty twenty five, this is one

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Speaker 1: of the articles that you need to check out.

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Speaker 2: Three belt worthy stories today, Dozzy boy, let's do it

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Speaker 2: for our first. The agable See has warned that Cole's

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Speaker 2: and Woolies will not be broken up, but they will

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Speaker 2: face a whole lot of screw.

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Speaker 1: You know that feeling when you're at the self check

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Speaker 1: out and suddenly the attendants hovering over your shoulder. B Man,

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Speaker 1: pretty much where Colson Woolies are right now with the

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Speaker 1: atrial seed.

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Speaker 2: So, Josie, wait, we know that Coles and Woolies are

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Speaker 2: the big Kahunas of the Australians supermarket industry.

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Speaker 1: Yeah, they've got more than sixty five percent of the

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Speaker 1: supermarket market share. They definitely dominate the market.

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Speaker 2: Or, as the ah Trible C calls them, the oligopolies

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Speaker 2: of the supermarket universe.

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Speaker 1: Now be Man. Just over a year ago, the ah

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Speaker 1: Trible Sea, which is a competition to watch Shog, began

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Speaker 1: investigating the supermarket chains.

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Speaker 2: With a very real threat that they could have been

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Speaker 2: forced to break up its divisions.

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Speaker 1: The idea would be to make the supermarket industry more competitive,

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Speaker 1: the Joseie woit.

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Speaker 2: Late last week, the ah Trible C's four hundred and

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Speaker 2: forty one page report was released as well as its

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Speaker 2: twenty recommendations and in.

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Speaker 1: The report be Man they speak about how Coles and

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Speaker 1: Woolies as some of the most profitable supermarket businesses in

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Speaker 1: the whole wide world, and it also speaks about the

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Speaker 1: rise of shrink flation to obscure pricing transparency. But b man,

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Speaker 1: there was no recommendation to break up the big dogs.

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Speaker 1: Next minute, the share price of Coals and Woolies both

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Speaker 1: jumped over.

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Speaker 2: Very keen to know, jusey boy, what is the key

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Speaker 2: learning here?

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Speaker 1: Tri Inflation is when a product gets smaller but the

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Speaker 1: price stays the same or even goes up.

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Speaker 2: Like when you open a bag of Chippy's and realize

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Speaker 2: it's eighty percent air and twenty percent regrant.

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Speaker 1: It's a sneaky tactic that's used by companies to protect

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Speaker 1: their profit margins without technically increasing their shelf prices.

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Speaker 2: Instead of charging more for a block of chocolate, for example,

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Speaker 2: they might reduce it from two hundred grams to one

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Speaker 2: hundred and eighty gram.

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Speaker 1: Hoping consumers won't notice the change, But.

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Speaker 2: The double whammy is even worse. A real example, jusi boy,

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Speaker 2: is Jiff bathroom cleaner your personal favorite? It was two

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Speaker 2: dollars fifty for seven hundred meals. That was in twenty

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Speaker 2: twenty two, but.

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Speaker 1: By twenty twenty four, it was four dollars for five

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Speaker 1: hundred meals.

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Speaker 2: May I just confirm here that that is sixty percent

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Speaker 2: more expensive for forty percent less jiff and that is.

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Speaker 1: Not a one off. B Man and the Ah Triple

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Speaker 1: ain't happy about this little one.

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Speaker 2: They want clearer labels so shoppers are not pamboozled at

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Speaker 2: the checkout.

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Speaker 1: Because let's be honest, be man, no one wants to

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Speaker 1: pay more for less.

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Speaker 2: For our second story, Nike has seen its revenue dropped

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Speaker 2: by nine percent in the last quarter and has warned

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Speaker 2: investors that there is more pain to come.

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Speaker 1: Nike tripping over its own laces. Here, be man, so

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Speaker 1: tell me what's going on.

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Speaker 2: Nike was founded back in nineteen sixty four and has

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Speaker 2: grown to become the world's largest sportswear brand.

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Speaker 1: We're talking global sales topping fifty one billion US dollars

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Speaker 1: a year.

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Speaker 2: Fun fact, Nike's Swosh logo was actually designed by a

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Speaker 2: UNI student in nineteen seventy one for just thirty five dollars.

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Speaker 1: Imagine if she took stock instead.

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Speaker 2: Now, jazz boy, Nike has just released it's third quarter results,

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Speaker 2: which were better than last quarter but still not great.

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Speaker 1: Yeah, It's revenue filled nine percent year on year to

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Speaker 1: eleven point three billion US dollars for the quarter.

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Speaker 2: Now, interestingly, the decline was less than what investors were

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Speaker 2: actually expecting here.

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Speaker 1: But be Man, Nike warned investors to lace up because

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Speaker 1: its revenue and profit will likely decline even further in

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Speaker 1: the next quarter.

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Speaker 2: But ultimately it came down to the inventory that they're holding.

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Speaker 2: It just ain't going down fast enough, be Man, and

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Speaker 2: as a result, Nike share price nearly five percent following

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Speaker 2: this news.

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Speaker 1: So what is the key leading here?

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Speaker 2: Inventory management is the fine art of having just enough

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Speaker 2: stock to meet demand without drowning in unsold gear.

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Speaker 1: For a business like Nike, managing infantry effectively is critical

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Speaker 1: for their profitability.

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Speaker 2: You see juz boy. Having too much old stock in

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Speaker 2: the warehouse increases cost significantly.

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Speaker 1: It might mean they need bigger warehouses to hold the

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Speaker 1: old stock and new season stock. At the same time,

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Speaker 1: it means longer time for stock to be sitting on

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Speaker 1: the shelf and often extra handling fees as well, So

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Speaker 1: businesses can lose out on potential sales of newer, higher

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Speaker 1: margin products.

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Speaker 2: In Nike's case, inventory dropped by two percent this quarter,

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Speaker 2: but sales declined nine percent.

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Speaker 1: Meaning they're still working through their surplus old stock.

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Speaker 2: And to sell the stock they need to discount and

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Speaker 2: do promotions, and basically they're giving away the old Nike.

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Speaker 1: Wheel, which no company really wants to do.

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Speaker 2: So solving its inventory challenges is essential for Nike to

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Speaker 2: not only boost its financial performance but also to stay

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Speaker 2: competitive in a very crowded sportsware market.

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Speaker 1: Yeah, for our third and final story, Apple TV Plus

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Speaker 1: is reportedly losing over one billion US dollars a year,

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Speaker 1: even after cutting back on its content spending and winning

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Speaker 1: big awards.

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Speaker 2: Not even winning big awards pays the bills. Juzzy boy,

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Speaker 2: So what is going on here?

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Speaker 1: Okay, so we know that after the success of Netflix,

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Speaker 1: every media company and the dog decided to launch their

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Speaker 1: own streaming service as.

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Speaker 2: Well as non media companies. Don't forget Apple and Amazon.

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Speaker 1: But so far, be man, Apple has been pretty successful

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Speaker 1: with the shows that's produced.

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Speaker 2: We'd be talking Ted Lasso The Morning Show shrinking, but bbman.

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Speaker 1: Apple TV Plus is reportedly losing more than one billion

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Speaker 1: US dollars a year. According to a new report by

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Speaker 1: The Information.

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Speaker 2: Get This, Apple has spent more than five billion dollars

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Speaker 2: a year on content since launching Apple TV Plus in

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Speaker 2: twenty nineteen.

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Speaker 1: But last year it cut it spending by around five

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Speaker 1: hundred mil terrain in.

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Speaker 2: The costs down to a measly four and a half

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Speaker 2: billion US dollars per year.

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Speaker 1: If that be man. Apple TV is supposedly Apple's only

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Speaker 1: non profitable service, but.

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Speaker 2: Does it way before you start crowdfunding for the poor

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Speaker 2: people at Apple. Keep in mind Apple pulled in three

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Speaker 2: hundred and ninety one billion dollars in revenue last year, so.

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Speaker 1: Apple TV is more of a lost leader.

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Speaker 2: For them, absolutely, So what is the key learning here?

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Speaker 1: A lost leader is a product or service sold at

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Speaker 1: a loss to attract customers into the store or the ecosystem.

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Speaker 2: Apple TV plus is playing the role of a loss

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Speaker 2: leader within Apple's wider ecosystem of products and services cv man.

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Speaker 1: Apple TV plus may not be profitable on its own,

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Speaker 1: but it enhances the value of Apple's broader offering.

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Speaker 2: It can increase stickiness for Apple device users, and it

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Speaker 2: also drives revenue into Apple software division.

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Speaker 1: Like iCloud, Apple Music, and the App Store.

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Speaker 2: And this division is worth more than twenty six billion

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Speaker 2: dollars in revenue if you don't mind Jazy Boy, the

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Speaker 2: classic playbook, lose a bit here, rake it in over there.

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Speaker 1: But at some point or another, every investor is asking

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Speaker 1: when is the best time to invest. We cover dollar

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Speaker 1: cost averaging in the Flux app this week, a very

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Speaker 1: savvy investment strategy to smooth out price bumps in the

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Speaker 1: share market. Make sure to check it out if you

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Speaker 1: want to learn more.

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Speaker 2: Thanks for listening and we'll see you on Wednesday.