🦘 Aussie Renters Are Getting Desperate, JB Hi-Fi Promises More Discounts, Push To Pay 18 Year-Olds The Same as Adults

G’day everyone!

Here’s what we’ve got in store for you today:

• Aussie Renters Are Getting Desperate

• JB Hi-Fi Promises More Discounts

• Push To Pay 18 Year-Olds The Same as Adults

Let’s have a look at the market snapshot before jumping into the news:

Aussie Renters Get Creative as Costs Climb: From Sharing to Family Ties

Australia's rental scene is in crisis mode!

New figures from Commonwealth Bank Australia reveal rents are skyrocketing at the fastest pace in over a decade.

With demand crushing supply, more Aussies are shacking up with roommates or moving in with family.

The latest CBA report shows a one percent rise in shared living arrangements since 2020-2021, now at five percent of the population over 15 – that's 200,000 more folks choosing to share space.

Whether it’s siblings, cousins, or even grandparents, families are banding together to combat these rising costs.

Economist Stephen Wu points out that as household sizes grow, the housing demand begins to stabilize, even with rental prices climbing at an annualized rate of nine percent.

The culprit? Record-low rental vacancy rates in major cities.

While cities like Sydney and Melbourne are seeing rent growth start to cool, Mr. Wu cautions that the moderation will be gradual.

The Reserve Bank’s Governor Michele Bullock echoes this sentiment, stressing the need to balance inflation control without overburdening households.

So, next time you squeeze into a sharehouse or bunk back in with family, know you're not alone – it's just the new Aussie rental reality!

Retail Shakeup: Push for 18-Year-Olds to Earn Adult Wages

Big news in the retail world!

The nation's retail workers union, the SDA, is on a mission to ensure 18-year-olds get fair adult wages.

Currently, an 18-year-old in retail makes just 70% of the adult wage, but the SDA wants to change that.

They’ve taken their fight to the Fair Work Commission and launched a major campaign today.

The proposed change would see pay for 18-year-olds jump from $17.31 to $24.73 per hour, making a big difference for young workers dealing with the same living costs as everyone else.

Entry-level wages would still apply to those under 18, but it’s full speed ahead for the older teens.

To back their cause, the SDA is rolling out ads across TV, radio, billboards, and online. Young union members are also hitting Parliament House to lobby MPs and Senators directly.

Not everyone’s a fan, though.

The Australian Retailers Association argues that higher wages could lead to fewer job opportunities for young people, as they might struggle to compete against more experienced applicants.

Despite resistance, SDA National Secretary Gerard Dwyer draws a poignant comparison to the historical fight for women’s equal pay.

He insists that 18-year-olds deserve the same pay as older adults because they face the same financial pressures.

Stay tuned as this wage war unfolds, with the SDA pushing for change and retailers weighing their options.

JB Hi-Fi Boss Vows to Keep Discounts Rolling!

JB Hi-Fi and The Good Guys are committed to keeping tech and appliance deals hot, says CEO Terry Smart.

Even though the retailer saw a dip in revenue and profits amid tough trading conditions, Smart assures customers that the hunt for value continues.

To keep those deals in your shopping bag, staff are encouraged to offer on-the-spot price matching and promotions, earning the brand a reputation for value that you can trust.

Despite a 0.9% fall in gross profits and shrinking margins, consumers are still snapping up smartphones and laptops.

TVs, however, are a different story - being a bit more of a luxury, folks are holding off on upgrades.

JB Hi-Fi revealed an 8.2% drop in earnings and a 16.4% decline in net profits for the fiscal year, but their unexpected special dividend created quite a buzz, shooting their share price up by 8.4%.

With an eye on consumer trends, they're adjusting product ranges to include more affordable options, ensuring they have something for everyone.

Plus, they've recently acquired 75% of e&s, a premium white goods business, to further expand their market presence.

Despite some hiccups, JB Hi-Fi is ready to adapt and keep those discounts coming your way!

CAR Group Zooms Past $1 Billion in Revenue Milestone

Online vehicle sales titan CAR Group, operator of carsales.com.au, has hit a new high, surpassing $1 billion in revenue for the first time in FY24.

This monumental leap was fuelled by the company’s roaring success in international markets, most notably through acquisitions in the US and Brazil.

CAR Group’s CEO, Cameron McIntyre, hailed FY24 as “another great year,” emphasising the double-digit revenue and earnings growth across all primary markets.

The company saw a 41% revenue surge to $1.098 billion and an adjusted net profit after tax climbing 24% to $344 million, despite a bottom-line profit dip of 61% to $249.9 million, thanks to the previous year's acquisition gains.

The group's recent takeovers, particularly Trader Interactive in the US and Brazil's Webmotors, have been key drivers.

Their platforms racked up 18 billion page views, 1.3 billion sessions, and sold 2.6 million vehicles online.

McIntyre highlighted the stellar performance in Brazil, where CAR holds a 70% stake in Webmotors, and robust achievements in North America, underlined by audience growth and tech advancements.

The Australian segment held strong with double-digit growth driven by a thriving used car market.

CAR Group’s dynamic pricing engine has enhanced private ad yields in both the US and Brazil, while continued investment in tech innovation promises further growth.

With a dividend of 38.5c per share, investors have reason to be optimistic about the group's future trajectory.

You Made It!

If you’ve read all the way up to here, we just wanted to let you know that you’re an absolute legend!

Time to go to work and show off how clued up you are about what’s going on in the business world 💪

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