August earnings show Australians spending less on pizza, more on weight-loss drugs
Australia's August corporate reporting season reveals shifting consumer habits, from fewer pizza discounts to rising weight-loss drug sales, dupe brands and electric vehicles, as cost of living pressures return.
Australia's August company earnings season offers a window into how consumer spending habits are shifting as cost of living pressures resurface.
Dupes go upmarket
Kmart's home brand Anko, which built its reputation copying popular items like footwear and loungewear at lower prices, is now expanding into furniture to rival Ikea and growing internationally, including new stores in the Philippines. Kmart Group, owned by Wesfarmers, posted $11.7bn in sales last financial year, with Anko a key driver. The brand now offers multiple price tiers, including pricier, higher-quality options alongside its entry-level products.
Pizza discounts pulled back
Domino's Pizza is cutting back on discounting to improve profitability for franchisees and investors, even as revenue from its Australian and New Zealand operations fell more than 11% over the past year. From September, the chain is also switching its drinks supplier from Pepsi to Coca-Cola.
Weight-loss drug boom
Pharmacy chain Chemist Warehouse reports strong sales growth in GLP-1 weight-loss drugs such as Ozempic. Its chief executive said customers buying these medicines are also purchasing protein powders, along with more beauty products and vitamins. Shopping baskets for GLP-1 customers are on average 40% larger than for other shoppers.
Electric vehicles accelerate
Car dealership group Eagers Automotive says drivers who switch from combustion engines to electric or hybrid vehicles rarely go back. In July, nearly one in three new cars sold in Australia was electric or plug-in hybrid, a record 32% share, partly driven by higher petrol prices linked to the conflict in Iran.
Letters keep declining
State-owned Australia Post posted a pre-tax loss of $108m for the past financial year. Letter volumes fell a further 15% over the year and are now back to 1930s levels, despite the population having grown roughly fourfold since then. From 1 September, the price of a basic stamp will rise by 15 cents to $1.85.
