November 3, 2023
CEO INSIGHTS – Week Ending 3 November 2023
“There's just no doubt about it, the amount of capital that's on the sidelines that wants to get into commercial real estate is enormous”
Shopping Centres & Retail
“An ongoing highlight remains the resilience of our food catering and retail services, which are traditionally more discretionary orientated categories than in the past have been the first cohort of categories to soften in the consumer downturn. Cafes, restaurants and in-center services such as beauty, hair services and optical are all part of the shopping experience and remain a drawcard for shoppers” Peter Huddle, CEO, Vicinity Centres Ltd
“There's just no doubt about it, the amount of capital that's on the sidelines that wants to get into commercial real estate is enormous” Robert Sulentic, CEO, CBRE Group Inc
“Our industry faces a greater impact from these pressures than other sectors, given that most flooring purchases are deferrable” Jeffrey Lorberbaum, CEO, Mohawk Industries Inc [world's largest flooring company]
“Turning to Australia. We continue to see encouraging signs of growth in customer demand for both our owned villages and our integrated services business” Bradley Dodson, CEO, Civeo Corp [global workforce housing/remote village specialist]
“Mine rehabilitation is a continuous and long-term process. It begins during the early stages of mine's development and can continue even after mine closure. The focus though is to progressively rehabilitate disturbed areas during the mine's operational life” Michael Ferraro, CEO, Alumina Ltd
“Having increased by 35% from July to September, over the past week the jet fuel price has come down almost 10%, highlighting the on-going volatility of this critical input cost” Market Statement, Air New Zealand Ltd
Food & Beverage
“I think if you are buying a new car or buying a new house that [interest rates are]probably a factor but we are in a different category now. We are now part of the ordinary way of life these days than if you went back 30 years ago when we were in the treat business and probably more vulnerable” Jack Cowin, Founder/Chairman, Hungry Jack’s
“Customers are trading out of, for example, steaks into mince, or out of red meat into chickens, to find cheaper and more affordable alternatives for protein. Some of the other things we’re seeing is that they’re buying in bulk and then cooking in bulk and freezing at home” Leah Weckert, CEO, Coles Group Ltd
Consumer Staples & Inventory
“We believe that retailer inventory destocking is largely behind us at this point” Christopher Peterson, CEO, Newell Brands Inc [multinational consumer staples parent co. of brands inc. Sharpie, Crockpot, Sunbeam & Rubbermaid]
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Healthcare, Wellness & Labour
“Clinical staff shortages, particularly in regional areas, and cost inflation have continued into FY24 driving labour costs to be higher than expected” Market Statement, Integral Diagnostics Ltd
“The [wellness] spend per capita in Australia in these categories is one of the highest in the world” Glenn Cochran, CEO, PharmaCare [parent co. of Australian health &wellness brands]
Cybersecurity & Insurance
“Furthermore, the coupling of increased cybersecurity attacks in both Australia and New Zealand with underwriters placing even stricter requirements on cybersecurity insurance policyholders is expected to drive further demand for modern PCs with the latest cybersecurity features” David Dicker, CEO, Dicker Data Ltd
“In automotive, the digital transformation of the industry continues to bring new levels of computing, intelligence and cloud connectivity to the vehicle. These trends are driving new user experiences, advancements in driver assistance, autonomy and safety. They also offer the potential for new revenue opportunities as vehicles gain the ability to evolve with over-the-air updates and digital services” Cristiano Amon, CEO, Qualcomm Inc
Delivery & Convenience
“So, we are seeing, customers continuing to cross-shop across different categories quite naturally and those numbers continue to increase. We're seeing for many consumers, the first interaction with DoorDash actually tends to be sometimes outside of the restaurant category” Tony Xu, CEO, DoorDash Inc.
Small Business & Payments
“When I think about small businesses in general, there's 2 really core customer challenges that the small businesses have. The first is getting customers and growing their business, and the second is managing cash flow” Alex Chriss, CEO, PayPal Holdings Inc.
“We compete in markets characterised by vigorous competition, changing technology, evolving industry standards, changing customer needs, and frequent introductions of new products and services. We expect competition to intensify in the future” Market Statement, Block Inc. [formerly Square Inc.]
“One type of trip that Airbnb is almost always better [than a hotel] is when you're travelling with 3 or more people” Brian Chesky, CEO, Airbnb Inc.
“Manufacturing is just not working in Australia…Australia does some great things in farming and mining but moving nuts and bolts around the world [to Australia] is not feasible when you could get it made a lot cheaper in a place like Estonia” Brian Flannery, CEO, White Energy Co.