Retail Wreckage

[Dona Ferentes]

Did anyone actually shop in Kaufland?
Was the experience or price better?.

They never opened in Australia... expected to in 2021, in a big way. The $500million was preparatory work, for at least 21 big boxes.

The parent, Schwartz Group, is the fourth largest retailer in the world, operating 1230 stores in Europe
(Germany and former Eastern bloc nations, largely)

 

[qldfrog]

True, and to be honest, as per japan, things are inproving, i always bought cheap battery drills.my first ones were abysmal, my last ozito keeps going well past reasonable expectancy,
And for a diy guy, i do not need a one use tool to keep forever if i can pay 20 or 30 bucks and the job is done but the tool dead at the end of the renovations.
20y ago, i would have hired a good tool, now i buy a throwaway for less than it costed me to hire 29y ago...

 

[greggles]

The real concern isn’t so much that they’re not going to be operating in Australia but that they’ve completely changed their mind, going from expansion to a complete pull out, at the same time numerous other retail and similar businesses are also closing or at least downsizing.

That this is so, yet another one on the list and we’re only three weeks into the year, is not a good sign so far as the national economy is concerned.

Agree. What the pull out makes me think is that Kaufland's analysis led them to believe that retail is going to get worse in Australia. Why else would they pull out after spending $500 million? If we were currently at bottom in retail with a recovery to come you would think they would carry on after making that sort of capital investment and take advantage of the upswing. They clearly think that there is worse to come, possibly for years.

I think we are inexorably heading toward another interest rate cut, possibly as early as next month. It is clear that the domestic economy needs to be stimulated further. The problem is, of course, that previous interest rate cuts haven't really had the desired effect so it is doubtful that any upcoming ones will either.

 

[SirRumpole]

I think we are inexorably heading toward another interest rate cut, possibly as early as next month. It is clear that the domestic economy needs to be stimulated further. The problem is, of course, that previous interest rate cuts haven't really had the desired effect so it is doubtful that any upcoming ones will either.

I think interest rate cuts are now counter productive.

People have woken up to the fact that cuts are needed because the economy is cr@p, and they are saving as much as they can in case the economy goes even more belly up and they lose their jobs.

The government has to ditch it's treasured surplus and inject more cash into the economy, whether it's by infrastructure acceleration, raising Newstart or the pension or some other means to get people spending and raise confidence, otherwise the slide will continue.

 

[Jack Aubrey]

I think interest rate cuts are now counter productive.

People have woken up to the fact that cuts are needed because the economy is cr@p, and they are saving as much as they can in case the economy goes even more belly up and they lose their jobs.

The government has to ditch it's treasured surplus and inject more cash into the economy, whether it's by infrastructure acceleration, raising Newstart or the pension or some other means to get people spending and raise confidence, otherwise the slide will continue.

Which, of course, is exactly what the RBA has been saying. I would think that the Government's surplus for this FY is out the window now anyway with the bushfire response (although how much is actually being spent is an open question).

 

[greggles]

The government has to ditch it's treasured surplus and inject more cash into the economy, whether it's by infrastructure acceleration, raising Newstart or the pension or some other means to get people spending and raise confidence, otherwise the slide will continue.

Getting it into the hands of low income earners will almost guarantee it goes straight back into the economy. Those with a surplus of capital will just sit on any extra. You don't want savers, you want spenders.

 

[Toyota Lexcen]

Hopefully they raise just the Aged Pension.

Newstart and a lot on Disability Pension shouldn't get anything.

 

[sptrawler]

I think interest rate cuts are now counter productive.

People have woken up to the fact that cuts are needed because the economy is cr@p, and they are saving as much as they can in case the economy goes even more belly up and they lose their jobs.

The government has to ditch it's treasured surplus and inject more cash into the economy, whether it's by infrastructure acceleration, raising Newstart or the pension or some other means to get people spending and raise confidence, otherwise the slide will continue.

I personally think the federal government should give grants to the states, to accelerate the HV transmission network upgrade, the bottle neck being caused with renewables requires freeing up from what I've read.

 

[tinhat]

Hopefully they raise just the Aged Pension.

Newstart and a lot on Disability Pension shouldn't get anything.

I've been thinking about a few options of what to do with the uneconomic excess of old people too.

1. Raise the old age pension but make receiving it conditional on either

a) handing over the title deeds to your home to the state (with security of tenure until you die) or
b) agreeing to be euthanized at a reasonable age or
c) agreeing that after you get to a certain age you will be euthanised if you require any major health care on the public purse (eg; breaking a hip once you are over 80 is immediate euthenazia).

2. Give everyone over retirement age the pension without any means testing for income or assets but only allow income tax deduction of money going into super, concessional tax of income on money in super and concessional tax on taking money out of super as a pension. Scrap franking credits.

 

[Humid]

The government will need to bring forward their policies they took to the election

Bahahaha

 

[Humid]

I've been thinking about a few options of what to do with the uneconomic excess of old people too.

1. Raise the old age pension but make receiving it conditional on either

a) handing over the title deeds to your home to the state (with security of tenure until you die) or
b) agreeing to be euthanized at a reasonable age or
c) agreeing that after you get to a certain age you will be euthanised if you require any major health care on the public purse (eg; breaking a hip once you are over 80 is immediate euthenazia).

2. Give everyone over retirement age the pension without any means testing for income or assets but only allow income tax deduction of money going into super, concessional tax of income on money in super and concessional tax on taking money out of super as a pension. Scrap franking credits.

I think you might need more than a tin hat
I'm thinking concrete bunker

 

[Humid]

Hopefully they raise just the Aged Pension.

Newstart and a lot on Disability Pension shouldn't get anything.

You and Tin hat should form a coalition
We have plenty of gas

 

[Smurf1976]

You don't want savers, you want spenders.

Long term the economy needs both unless we actually want literally everything owned by foreigners.

Short term though, to get things going, well it’s either consumers or startup business displacing imports or selling overseas that are going to do that.

 

[Smurf1976]

What the pull out makes me think is that Kaufland's analysis led them to believe that retail is going to get worse in Australia. Why else would they pull out after spending $500 million?

That’s my thinking also.

They’re a big business throwing away a fair chunk of the $500 million they’ve spent with no prospect of getting that back.

They must have information now that they didn’t have previously and it seems more likely that’s going to be a change of underlying circumstances than simply a prior oversight on their part.

I’ve bought one thing there once but that was in Germany. Couldn’t understand a word the checkout operator said but I did conclude from the receipt there’s two separate taxes on top of the price shown on the shelf.

 

[Smurf1976]

I think interest rate cuts are now counter productive.

Agreed there. First because it just confirms what the masses suspect anyway when the RBA, one of relatively few organisms which still seems to be held in reasonably high regard these days, does something clearly intended to try and prop up a flagging economy.

That past such attempts haven’t been successful, and that the RBA’s call for government to change approach has been ignored, adds to that. The RBA’s been sounding the alarm for quite some time now, doing what they can, but government refuses to heed the message and that’s reasonably well know to anyone who simply watches the news.

Second because a not insignificant % of the population loses financially from interest rate cuts. Either they’ve got cash in the bank or they’re intending to buy a house the price of which is pushed up.

 

[tinhat]

I think you might need more than a tin hat
I'm thinking concrete bunker

I've got one of those and 250,000 litres of tank water which I will double over time. Bushfire is a big issue where I live and I love living in nature and I am deeply grateful to be living on Dharawal land immersed in that culture which is all around my local landscape. I will be handing over my land title to the custodians of the this land when I die.

I'm open to all reform proposals but there is one thing that is certain, which is that significant tax reform is needed in Australia and has been for decades now. So, if older people aren't prepared to be part of that then I think it is inevitable that they are going to be euthanized one way or another. Right now, old people in nursing homes are sitting in their own feces with open bed sores drugged up so they don't cause trouble.

What I do not understand is why the young people, what every we call them (millennials?) are not in open revolt right now.

All the above is just focused on the structure of fiscal affairs. So no need to even start on the environmental issues.

 

[tinhat]

I've got one of those and 250,000 litres of tank water which I will double over time. Bushfire is a big issue where I live and I love living in nature and I am deeply grateful to be living on Dharawal land immersed in that culture which is all around my local landscape. I will be handing over my land title to the custodians of the this land when I die.

I'm open to all reform proposals but there is one thing that is certain, which is that significant tax reform is needed in Australia and has been for decades now. So, if older people aren't prepared to be part of that then I think it is inevitable that they are going to be euthanized one way or another. Right now, old people in nursing homes are sitting in their own feces with open bed sores drugged up so they don't cause trouble.

What I do not understand is why the young people, what every we call them (millennials?) are not in open revolt right now.

All the above is just focused on the structure of fiscal affairs. So no need to even start on the environmental issues.

And people are worried about the state of retail. I'm laughing out of my arse.

 

[Smurf1976]

the RBA, one of relatively few organisms

That should have read organizations

 

[Smurf1976]

I'm open to all reform proposals but there is one thing that is certain, which is that significant tax reform is needed in Australia and has been for decades now. So, if older people aren't prepared to be part of that

I think you've actually answered the question there.

The older half of the population has seen quite a few things "reformed" have learned that "reforming" anything tends to mean the price goes up and the quality goes down.

That being so, well it's no wonder they're not too keen on having anything else "reformed".

 

[aus_trader]

And people are worried about the state of retail. I'm laughing out of my arse.

Generally I like your stuff tinhat, including comparing stocks vs ex girlfriends which I thought was funny. But some of the views you have are extreme man, even scary. Hope you don't form a party as Humid suggested
With regards to retail numbers, people tend to under-estimate it's impact. I think it's similar to the canary in the coal mine.