🦘 Guzman Y Gomez’s IPO Parade, Where You Can Get The Cheapest Groceries, Westpac Introduces ‘Pay With Points’ System

G’day everyone!

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

• Guzman Y Gomez’s IPO Parade

• Where You Can Get The Cheapest Groceries

• Westpac Introduces ‘Pay With Points’ System

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

Guzman y Gomez Goes Public, Hits $3 Billion Valuation

Guzman y Gomez (GYG) just made a grand entrance on the Australian Securities Exchange (ASX), shooting its market valuation past $3 billion!

Shares were initially offered at $22, but by 1 pm today, they were trading above $30 - a whopping 36% jump.

This stellar debut follows last month’s announcement of their intention to go public.

With their market cap jumping from $2.2 billion to over $3 billion, it’s clear investors are loving what they see.

So what’s next for this Mexican-themed fast food heavyweight? Expansion, expansion, expansion.

GYG has bold plans to grow from its current 210 locations to more than 1,000 stores across Australia over the next two decades.

They’re putting $200 million from the listing towards this ambitious goal.

With this public offering, Guzman y Gomez has positioned itself to seriously ramp up its footprint, delighting burrito lovers far and wide.

Stay tuned, because this fiesta is just getting started!

Newsletter Recommendation

Groceries Price Face-Off: Aldi Trumps Coles and Woolworths with Lower Prices

A new report by consumer advocacy group Choice has revealed a strikingly small price difference between Coles and Woolworths, Australia’s two largest supermarket chains, with only a 75-cent gap between them.

The investigation, conducted in March, included undercover shoppers visiting 81 supermarkets across the country to price check 14 common items.

The findings were eye-opening: a basket of groceries at discount chain Aldi cost around 25% cheaper than at both Coles and Woolworths.

But not all Aussies are feeling these savings.

The report highlighted that prices vary notably depending on location.

In areas without Aldi stores, such as Tasmania and the Northern Territory, consumers are often paying more.

Additionally, Choice compared 10 items at four IGA locations in these areas and discovered prices were higher than at Coles and Woolworths.

Coles and Woolworths dominate 65% of the supermarket sector, with Aldi and IGA holding 10% and 7%, respectively.

Allegations of price gouging have arisen, especially after Coles and Woolworths executives testified they monitor each other’s prices, suggesting a duopoly.

To combat these inflated prices, the government is funding Choice to roll out quarterly grocery price reports, aiming to foster competition and potentially yield better deals for shoppers.

Stay tuned, shoppers - change may be in the air!

Westpac’s ‘Pay With Points’ Lets You Shop 'Til You Drop Without Spending Cash

Westpac is revolutionizing rewards with a new feature called ‘Pay With Points.’

Now, Altitude Rewards customers can use their accumulated points directly to cover credit card purchases wherever Mastercard is accepted.

No more fiddly redemption processes - just straightforward spending.

For every eligible transaction, customers will see cash back in their account based on the points used, though you’ll need at least $3 worth of points to kick things off.

Westpac's Chief Digital Officer, Jason Hair, highlights that this feature offers much-needed flexibility, especially as Aussies tighten their belts.

You can still redeem your points the old-fashioned way through the Altitude Rewards Centre for gift cards, travel, or cash back.

But keep in mind, these points aren’t cash; for instance, $50 in cash back costs 14,100 Altitude points, making each point worth around 35 cents.

Westpac offers two Altitude Rewards cards: Platinum and Black.

The Platinum card, with a $175 annual fee, earns one point per dollar spent on eligible purchases, while the $295 Black card nets you 1.25 points per dollar.

And here’s a plus - Altitude points don’t expire, and there’s no cap on what you can spend in a single transaction.

So, if you've got points piling up, it might be time to give your wallet a break and let your points do the talking.

Aussies Count the Cost as Business Insolvencies Surge by 38%

Australian businesses are hitting a rough patch, with a 38% jump in insolvencies over the past year, thanks to rocketing interest rates and everyday costs, revealed by CreditorWatch’s business risk index.

Here's some key highlights:

Record Insolvencies: A staggering 1378 businesses declared insolvency in the year to May, marking an all-time high.

Industry Breakdown:

• Utilities (Electricity, gas, water, and waste services) saw an 89% spike in failures.

• Education and Training faced an 87% rise.

• Mining wasn’t spared either with a 72% increase.

Most Vulnerable: Food and Beverage services had a shocking 7.54% fail rate.

Construction Woes: Around 10.46% of construction businesses are grappling with overdue payments.

Consumer Tightening: Spending has been pinched across all income levels, battered by persistent inflation and relentless rate hikes.

Despite the bleak landscape, there's cautious optimism.

CreditorWatch’s boss, Patrick Coghlan, predicts a boost in consumer confidence post two rate cuts, but that's likely a sigh of relief reserved for 2025.

As businesses brace for a bumpy ride, keeping a close eye on expense management and payment timelines might just be the lifebuoy they need to stay afloat.

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 💪

Keep an eye out for tomorrow's newsletter. Until then, we’d love to get your feedback below!