Business Daily Media

The Times Real Estate

.

AU Retail data

  • Written by Stake Market Analyst, Megan Stals

Today’s sluggish 0.2% August retail sales increased the likelihood of a hold by the RBA next week, as  consumers continue to rein in spending as the impact of rate hikes hold. But this was only part of the full picture, with today’s National Accounts Data also revealing that household deposit accounts saw the first quarterly decline since 2007  — signalling that a per-capita recession is becoming the dominant economic narrative for the local market. While inflation will remain a concern for investors for some time, it’s likely we’ll see attention shift to the rate of economic growth as we roll into 2024.

Given the backdrop, many investors will be positioning portfolios to weather weak consumer spending. Naturally, the outlook for discretionary retail stocks appears challenging, yet even consumer staples retailers such as Woolworths and Coles have also entered into a downtrend, as the impact of increasing theft and higher staffing costs hit the bottom line. Retailers that are geared towards the cheaper end of the market are appearing to benefit, with The Reject Shop (ASX: TRS) seeing a 35% YTD increase, and stronger momentum when compared to most retail stocks.

Other sectors with defensive characteristics could also be an attractive option. Insurance companies weathered 2023 better than most, with AUB Group (ASX:AUB) being up over 30% and QBE Insurance Group (ASX:QBE) more than 20%. That said,  it’s particularly important to look for companies with a reliable income and strong balance sheet in the current environment, as they are far more likely to show resilience.

By Stake Market Analyst, Megan Stals

Cutting edge AI technology designed for doctors to reduce patient wait times launched in NZ

New Zealand specialist doctors now have access to Artificial Intelligence technology to help reduce patient wait times and experts say it could be...

Launchd Takes Off: Former AFL Stars Lead Tech-Powered Platform Set to Disrupt Talent and Influencer Marketing

Backed by Institutional Capital, Launchd Combines Five Leading Agencies and Smart Technology to Deliver Measurable Results Influencer marketing i...

Meet the Australian fintech unlocking rewards for small businesses

Small businesses make up 98 per cent of all businesses in Australia, yet they continue to bear the brunt of economic uncertainty. According to Credi...

Teleperformance (TP) Business Insights Report Reveals Key Shifts in Consumer Behaviour

TP’s Business Insights report  into consumer behaviors and preferences, taking in more than 57,000 respondents across 19 sectors, is shedding new li...

HubSpot launches platform-wide AI tools to help businesses close the adoption gap

HubSpot today unveiled more than 200 updates across its customer platform to help businesses grow better. The release introduces smarter tools, new AI...

Why Every Leader Needs a Personal Branding Strategy in 2025

One of the best investments you can make in 2025? Your Personal Brand.In today’s competitive and digitally driven business world, authenticity and...

Sell by LayBy