WEBVTT - Lovisa faces class action lawsuit | Bunnings ramps up its media | Microsoft's mega AI spend

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<v Speaker 1>This is what the Flux I'm brand and I'm justin

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<v Speaker 1>ads Monday to third of February, does it boy.

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<v Speaker 2>The government got a bit of a shock when it

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<v Speaker 2>released the taxes received from tobacco had dropped to a

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<v Speaker 2>nine year low. And no it's not because of a

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<v Speaker 2>dramatic drop in smokers here in Australia, but because smokers

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<v Speaker 2>are turning to the black market for cheaper cigarettes. And

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<v Speaker 2>just get this, in the last financial year the government

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<v Speaker 2>pocketed nine point seven billion dollars from the tobacco tax, down.

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<v Speaker 1>From over sixteen billion the year before. Very very interesting man,

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<v Speaker 1>Flux man. It's the beginning of a brand new month,

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<v Speaker 1>which means it is a brand new opportunity to check

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<v Speaker 1>whether your credit score has gone up, whether it's gone down,

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<v Speaker 1>and how it's changed over the past month. We have

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<v Speaker 1>it all covered in the Flux app with a very

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<v Speaker 1>simple and easy to understand credit score is all to

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<v Speaker 1>make sure to download the Flux app and check your

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<v Speaker 1>credit score. February three.

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<v Speaker 2>Refreshing stories today, Dozy boy, Let's do it for our

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<v Speaker 2>first Levisa. The jewelry chain is facing a class action

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<v Speaker 2>from its employees after allegedly forced staff to work for

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<v Speaker 2>free outside rosted hours.

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<v Speaker 1>Jeez, Lavisa's team sparkle may be losing its shine. Be man,

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<v Speaker 1>so tell me more well, Juzyboit.

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<v Speaker 2>Lavisa started in twenty ten as a fast fashioned jewelry

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<v Speaker 2>chain with budget friendly bullying. Yeah, they release hundreds of

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<v Speaker 2>new styles of jewelry every single week, and over the

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<v Speaker 2>past fourteen years, the company has grown to over six

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<v Speaker 2>hundred stores around the world.

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<v Speaker 1>Including listing on the ASEX in twenty fourteen, and now

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<v Speaker 1>worth a casual three point two billion dollars.

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<v Speaker 2>But behind the glitz of Lavisa, things might not be

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<v Speaker 2>so golden.

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<v Speaker 1>Lavisa's facing a class action lawsuit from its employees for

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<v Speaker 1>allegedly breaching workers' rights That includes paying them the wrong

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<v Speaker 1>base rate. That includes not paying staff for attending training,

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<v Speaker 1>as well.

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<v Speaker 2>As forcing staff to perform duties before or after they're rosted.

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<v Speaker 1>Chiff and the man, we are just talking about five

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<v Speaker 1>employees or fifty employees alleging this behavior. Wow, how many

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<v Speaker 1>are we talking? We're talking three hundred employees, most of

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<v Speaker 1>who are young women in high school, in university and Joseboit.

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<v Speaker 2>If this lawsuit is successful, it could have a significant

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<v Speaker 2>impact on Lavisa's financial results and its reputation.

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<v Speaker 1>So what is the key learning here?

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<v Speaker 2>When a company is hit with a workplace lawsuit, the

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<v Speaker 2>implications can extend far beyond legal fees.

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<v Speaker 1>We often see class actions result in in pretty hefty

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<v Speaker 1>settlements that can drain companies resources.

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<v Speaker 2>For example, in twenty twenty one, Woolworth's was forced to

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<v Speaker 2>repay five hundred and seventy one million dollars after underpaying

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<v Speaker 2>Star and that had.

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<v Speaker 1>A significant impact on its profit for the year.

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<v Speaker 2>But jus boyd, there are also serious implications beyond direct

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<v Speaker 2>financial losses.

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<v Speaker 1>These type of lawsuits can also erode brand trust, particularly

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<v Speaker 1>if it's so public in the.

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<v Speaker 2>Media like this is Yeah, we know that consumers today

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<v Speaker 2>are more socially conscious, so any negative press can drive

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<v Speaker 2>customers away.

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<v Speaker 1>And be man. It seems like this lawsuit isn't the

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<v Speaker 1>first time Levisa has been criticized for its workplace practices.

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<v Speaker 2>Nope, its employer rating on SEK is two point seven

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<v Speaker 2>out of five, two point four out of five on Glassdoor,

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<v Speaker 2>and one point six out of five on Product Review.

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<v Speaker 1>Yikes, So be man, Levisa might need more than a

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<v Speaker 1>quick polish to fix it. Class action.

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<v Speaker 2>For our second story, Bunnings has begun rolling out three

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<v Speaker 2>hundred large in store LED screens throughout its hardware stores

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<v Speaker 2>to build a retail media behemoth.

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<v Speaker 1>It's only a matter of time that the partnerships moved

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<v Speaker 1>from the ads on TV to the ads in the stores.

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<v Speaker 1>Tell me more, b Man, Well we know.

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<v Speaker 2>Bunnings is the iconic Australian hardware store with the so

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<v Speaker 2>bare they're kind of good, jingle heavy ads and.

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<v Speaker 1>The iconic snags that haven't changed in years.

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<v Speaker 2>The place where you walk in for a pack of

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<v Speaker 2>screws and somehow leave with a trolley full of power tools.

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<v Speaker 1>Yilty and be Man. Bunnings has grown into an absolute

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<v Speaker 1>behemoth over the past decade.

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<v Speaker 2>In fact, its revenue has topped nineteen billion dollars in

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<v Speaker 2>the last financial year.

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<v Speaker 1>But Bunnings isn't just about hammers and host fittings anymore,

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<v Speaker 1>b Man, It's building a retail media empire.

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<v Speaker 2>Bannings has started to roll out LED screens across its stores,

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<v Speaker 2>sprooking products of its hardware suppliers.

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<v Speaker 1>In exchange for a very tasty fee, of course, and.

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<v Speaker 2>These screens will be placed in strategic positions around their stores,

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<v Speaker 2>a bit.

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<v Speaker 1>Like how Woollies, Coals and Chemists Warehouse do it as well,

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<v Speaker 1>and the retail media intr is growing rapidly. In Bunnings

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<v Speaker 1>wants a little slash enormous piece of the pie. Yep,

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<v Speaker 1>So what is the key learning here?

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<v Speaker 2>Retail media has become the latest shiny new tool in

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<v Speaker 2>the retail shed to expand revenue out of existing stores.

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<v Speaker 1>It's all about using data to target shoppers right when

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<v Speaker 1>they shop.

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<v Speaker 2>Whether that's a cheeky digital billboard in Bunnings for a

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<v Speaker 2>Reobi drill just as you're shopping in the drill section, or.

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<v Speaker 1>An instore radio ad for Telfast when you're shopping at

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<v Speaker 1>Chemist Warehouse and Juzyboy analysts reckon.

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<v Speaker 2>This retail media industry is already worth more than one

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<v Speaker 2>point six billion dollars in Australia.

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<v Speaker 1>Will Worth already makes five hundred and fifty mil from it.

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<v Speaker 2>And just for the record, Juzzi Boy Woolly's digital media

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<v Speaker 2>business has grown at thirty four percent over the past

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<v Speaker 2>four years.

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<v Speaker 1>So Bunnings is own our West Farmers be thinking let's

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<v Speaker 1>get in there, starting with trusty old Bunnings.

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<v Speaker 2>For our third and final story, Microsoft has seen its

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<v Speaker 2>profit jump by more than ten percent from a year before.

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<v Speaker 2>But not all is as good as meets the AI

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<v Speaker 2>very good.

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<v Speaker 1>I say what you did there, be man, so tell

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<v Speaker 1>me more. Well.

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<v Speaker 2>Microsoft is one of the great eight success stories of

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<v Speaker 2>the past couple of decades.

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<v Speaker 1>Juzzy boy. Yeah, it's always been a behemoth, but in

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<v Speaker 1>the early two thousands, Microsoft kind of lost its way.

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<v Speaker 1>Back in twenty fourteen, it pivoted the business to have

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<v Speaker 1>a much bigger focus on cloud computing, which has now

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<v Speaker 1>become a core part of its revenue and now b man.

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<v Speaker 1>Microsoft has said its revenue is jumped by twelve percent

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<v Speaker 1>to nearly seventy billion US dollars for the last twelve months,

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<v Speaker 1>and profits up ten percent as well, both of which

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<v Speaker 1>beat Microsoft and the investor markets expectations.

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<v Speaker 2>But Microsoft also flagged that it would spend about eighty

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<v Speaker 2>billion US dollars on data centers this financial year, not.

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<v Speaker 1>What investors want to hear just a few days after

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<v Speaker 1>they hear about deep Zeek. Oh interesting, juzzy boy. So

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<v Speaker 1>what is the key learning here? For big tech companies?

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<v Speaker 1>Balancing high growth with high spending is an ongoing challenge.

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<v Speaker 1>On one hand, investors cheer when revenue beats expectations like

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<v Speaker 1>Microsoft did right here. But on the other hand, investors

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<v Speaker 1>also get nervous when a company hints at massive spending

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<v Speaker 1>like Microsoft's eighty billion dollar data center investment. It's a

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<v Speaker 1>classic case of you got to spend money to make money.

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<v Speaker 2>The good news for Microsoft is that it's AI business

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<v Speaker 2>generated an annual revenue run rate of thirteen billion US dollars.

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<v Speaker 1>But b Man investors are worried about when they'll start

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<v Speaker 1>to see an actual return on the AI investment, which

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<v Speaker 1>keeps getting higher and higher each year, particularly since the

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<v Speaker 1>announcement of Deep Seek creating very very cheap AI models. FLUXPAM.

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<v Speaker 1>Your credit score is one of the key attributes that

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<v Speaker 1>a banged or a lender, or even your mobile phone

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<v Speaker 1>provider will looked at before you apply for a product,

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<v Speaker 1>so make sure you see what they can see about

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<v Speaker 1>you in the Flux app. This month, we've got it

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<v Speaker 1>all covered with easy to understand explainers and highlighting what's changed.

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<v Speaker 1>It's hunt, so make sure to download the Flux app

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<v Speaker 1>and check out your credit score.

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<v Speaker 2>Thanks for listening, and we'll see you on Wednesday.