GYG's spicy entry onto the ASX | Netflix launches "Netflix Houses" | City Chic's 30% sales drop

This is what the Flux.

I'm Bradan, I'm justin and it's Friday, the twenty first of June.

Flax fam.

Have you ever wondered if one supermarket here in Australia is actually cheaper than any of the others I have? Well, the conclusive evidence is in and Choice, the Consumer Advocacy Group convert the price of fourteen everyday supermarket items. We're talking things like apples and flour, wheatbits, butter Lo and behold Audi. It was the cheapest by twenty five percent.

I knew it.

I've been saying it forever. Uh huh, you have saving money, be man. We are nine days away from the end of this financial year, which means nine more days to make purchases that can be tax deductible. In the Flux app, we show you which items you can purchase and.

How much you can claim, so make sure to check it out.

Three world class stories today, Uzzy boy, let's do it for our first. Guzman Egomez publicly listed yesterday in the asx's biggest float over three years.

And what a start, be Man.

The share price hit harder than hungover Brecky Burrito with extra helimeters.

So tell me, what all right, juz boy?

You and HD spoke about the GYG story a few weeks ago.

Pretty crazy story, this one.

Since launching in two thousand and six, GYG has expanded to over two hundred.

And ten restaurant We're talking in Australia, in Singapore, in Japan, in the US.

Their tacos can travel and be man gooz Minigo.

Man's first plan to raise about two hundred and thirty five million dollars as part of this flow.

But with investor interest spicier than their hottest salsa, GYG turned up the heat.

They ended up raising three hundred and thirty five million dollars for GYG.

As well as its investors, and yesterday it shares open at thirty bucks on the ASX.

That's eight dollars above its listing price, more than thirty five percent higher.

Holy Guacamolely, so why did this listing pop off so hard?

Well, be Man, It's fair to say this was a very tight share register.

The top twenty shareholders of GYG owned more than eighty five percent of this share.

Meaning there's not a lot of liquidity to get a fair market price.

So what is the key learning here?

Liquidity in the share market is how easily and how quickly shares of a company can be bought or sold without significantly affecting the share price. When there's a lot of liquidity, it means lots of shares are being traded, which usually results in more stable prices. But when most of the shares are held by a few investors, the amount of.

Shares available to the public are much fewer, like in the case of G to the Y to the g get.

This according to COMSEC, at the time of listing yesterday, there were five hundred and twenty four buyers that wanted to buy the stock compared to forty nine sellers, and with fewer shares on the market, each buy or sell order can have a bigger impact on the stock price, so be man. Some investors believe the true test for GYG share price will be when it's major investors are

Wow, Netflix and Chill turning into Netflix and Shop tell me more.

Okay, so we know.

Netflix actually began in nineteen ninety seven as a DVD by male movie rental service.

Aha, But since then it's pretty much evolved into a digital on demand serve. And with this digital on demand service, it's grown to nearly two hundred and seventy million subscribers worldwide.

But does woit? Now?

Netflix is switching back to the physical world by launching what it is calling Netflix Houses.

And what is this Netflix house you speak of?

Well, the idea is that fans of Netflix shows can get immersive experiences of their shows.

Literally get a taste of their favorite shows through the food and drinks that are sold in the experiences.

So it could be scones and high tee for Bridgitton themed experiences.

Exactly, or baby Reindeer experiences hopefully not. And although this isn't Netflix's first physical experience, it.

Is the biggest so far and really shows how much Netflix still values the physical world to promote it shows.

So what is the key lenning here?

Netflix is borrowing straight out of Disney's playbook.

Like Disney, Netflix has grown a massive fan base for its original content.

We're talking characters from shows like Bridget and The Squid Game, Stranger Things, But.

Unlike Disney, Netflix hasn't managed to turn that into a whole separate business division.

Might I remind you of Disney's cash cow, Disneyland?

I do remember that, which, by the bye, generated over thirty two billion US dollars in revenue for Disney just in the last financial year.

Or what about this one that's come across my desk, Mattel, who has gone in the opposite direction.

Yep, they've turned a popular physical product like Barbie into a movie screen superstar.

We're talking more than one point four billion US dollars in box office revenues.

So now, b man, Netflix is trying to turn its Netflix houses into its first version of Disneyland.

For our third and final story, City Chic has warned that it's expecting to see sales fall by thirty percent this year and is desperado for some emergency cash from investors.

Can't imagine investors being too excited for this one. So what is the story here?

Well, City Chik is the fashion retailer started up in Sydney in nineteen ninety two and listed on the ASX only six years later.

And b Man, this may surprise you, but City Chik was actually one of Australia's biggest fashion retailers at a point you're kidding who did they own? Which big names? They owned Miller's Fashion Club, The Katie's and Crossroads.

Since then, it's sold off those businesses and made multiple acquisitions in the plus size fashion space, which is what it's known for now now jaesy boy. City Sheek copped a serious beating through the pandemic and came out of it having lost get this, ninety five percent of its value.

And now it's just getting worse because City Sheik has warned of an expected sales drop of fifty.

Percent this year and a mega loss amounting to over ninety one million dollars plus.

To make matters just that little bit worse, it's looking for more than twenty seven mil in emergency cash from their investors to just help it stay afloat. And the reason for this megal loss they man.

Well, it was forced to majorly discount as stock because it just had too much inventory, which really hurt their bottom line. So what is the key learning here?

So much of managing costs in retail is about anticipating what inventory to stock and how much of it to see.

Too little inventory, you might dent your reputation. If your customers are struggling to find what they want in stock.

Too much inventory, well, that can quickly ramp up your inventory costs like storage stock damage.

And to clear your stock you need to go on heavy discs down.

And this has been an ongoing issue for City Sheik be Man, which back in twenty twenty two was holding three times more stock than it needed.

So it had to offer discounts of up to eighty percent on some of its items to.

Get rid of them.

Not the only retailer that's fallen prey to the old too much stock problem Narki as well. They were holding on almost ten million bucks worth of infantry late last year because of softer consumer sentiment, and.

Nike had to dish out major discounts to get rid of this stock, which pushed its share price down almost twenty percent.

So ay Man.

If City Sheiks can have a miraculous recovery, it really needs to sort out its stock levels.

Fluxdam.

We know you're all counting down nine days until the end of this financial year, which means nine more days to make purchases.

It can be tax deductible. We've got it all covered.

In the flux out which items to buy and what you can claim, so make sure to check it all out.

Thanks for listening, and we'll see you on Monday.