I regret buying a twin pack of 40 oz Ranch Dressing Jugs last week. I didn’t overdo it. The warehouse club industry was built around rewarding extreme seasoning commitments with low unit prices. But I didn’t know there was a coupon for an extra $3 off at home. From now on, every time I take a bite of mixed greens, I will mentally write off that overpayment until Groundhog Day.
when did you get this cheaper? Just last year, I was throwing cash at home projects, big-screen fitness his machines, and comfy clothes while buying dressing eight ounces at a time, like Diamond Gym. Now the world is back on track, but despite this year’s spike in inflation and plummeting stocks and bonds, my financial situation remains the same, but I have stopped spending.
Maybe I’m not alone. Signs of the economy look healthy enough, including job growth, wages and consumer spending. But the retail industry is making a fuss over consumer price cuts.rear
(Ticker: WMT) surpassed earnings estimates last week as consumers buy less deli meats and buy more chicken, hot dogs and canned tuna as U.S. stores rise from high-income shoppers stopping in for bargains It says it does.
CEO Doug McMillon apparently tried to grab attention on the earnings call, specifically referring to apparel overstocks and price cuts. “I am amazed at the strength of flannel for men. There are programs just under $12,” he tells analysts. “I personally bought him two and they are great value.”
(BJ) reported results two days after Walmart, and CEO Robert Eddy called for a cold cut. A shopper who buys a pound of turkey slices and cheese a week, he saves $260 a year compared to the competition. This is almost five times the basic membership fee. The results were strong across the board. BJ’s is offering discounted fuel, he’s 40% more than he did two years ago. Excluding fuel, same-store sales increased 7.6% year-on-year. Management met his store brand penetration target of 25%, so he raised the target to 30%. Shares rose 7%.
TJX Co., Ltd.
(TJX) specializes in buying discounted and overstock clothing from chains and manufacturers, and also reports quarterly results. Sales fell short of expectations, but profits exceeded expectations and the report was well received.
TJX says it stands ready to capture market share in the face of likely cancellations of clothing orders going forward.
(DLTR) will report results this Thursday. UBS analyst Michael Lasser believes the company probably gained share in the second quarter as its core customers were weighed down by inflation. “There is also suspicion that high-income earners have migrated to dollar stores for better value,” he wrote in a note.
For those on a tight budget, frugality is a way of life. But why are prices falling for those who can afford to breathe? Inflation is probably a good reason. Personally, I can’t shake the feeling that the bear market should hurt more. where is the despair?
BofA Securities points out that every new bull market since 1935 began when something called the Rule of 20 was met. , if the sum is less than 20, investors and consumers are pessimistic enough. By my calculations, it never went below 24. Either the rules are broken, the stock price needs to go down, consumer demand needs to go down, or both.
The Rule of 20 is one of those long list bull market beacons.
Such as the Fed’s rate cuts and important manufacturing surveys showing improvement. Only 30% of the signposts were hit this summer. The long term average before the new bull market is 80%.
If it’s wrong to be wary of the upcoming trade-in economy, kindly dismiss this as a senior thesis stock deadline from the guy who walked out the door for a two-week vacation. If I’m right, the winning stock among the stocks already listed might be BJ, who trades at 15x his free cash flow. The sales ratio of discretionary items is lower than Sam’s Club,
(COST), and a higher mix of foods is holding back in a booming economy, but is what investors want when shoppers prioritize their needs and forget what they want.
“Need” here is subjective for a store that sells the famous Amos cookies in 42-pack pouch boxes, but the idea is understandable. Not anywhere near dressing up anytime soon, but in a few months he might even spot me at BJ.Look for guys wearing $12 flannel shirts.
One analyst I spoke to remains bullish on a handful of companies that combine subscriptions, or at least memberships, with a franchise business model and a fragmented industry.Randall at Jeffries Cole conic
(PLNT) The Walmart of the gym industry at $10 a month. He thinks Jim is ready for a comeback.
(PTON), a bicycle company. “He’s trying to sell his, but he can’t find a buyer,” he says.
i like conic too
Mr. car wash
(MCW) has 10% market share on monthly payments. “Theoretically, you could cancel your car wash membership during a recession, but if it costs you $15 to $20 a month, that’s the number of Frappuccinos.
’ says Connick.
European Wax Center
(EWCZ) has learned that it has nothing to do with car detailing. It uses a by-nine, get-three-free model to handle other types of waxing. I haven’t heard about demand elasticity, but if it’s something like lawn care, it’s hard to go back if you leave it to the professionals.