McKinsey & Co's data predicts that even wealthier consumers will start to feel the burn and make cut backs.
👉 Background: Across 2022, we've been hit with increased mortgage repayments, higher energy prices and generally more economic uncertainty in the employment market.
👉 What happened: Now, data from McKinsey & Co predicts that even wealthier consumers, those earning more than $125k per year, will start to feel the burn and make cut backs.
👉 What else: In fact, the survey showed that shoppers are looking to cut back in all areas - except groceries and their daily commute. And specifically, categories like jewellery and luxury clothing are being put on hold.
💡 It’s likely a large cashflow crunch is on its way, but not all cash flow-crunches are equal. In a recession-like environment, many people experience financial difficulties and may be forced to cut back on their spending.
💡 But investors, like Jarden, believe that companies that focus on selling to younger Australians could be protected. These may be companies like Premier Investments… which owns Smiggle, Peter Alexander and Just Jeans.
💡It seems counter-intuitive but younger people generally have fewer bigfinancial obligations… like a mortgage or children. But then again, they also they generally don’t earn nearly as much.
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