Latest news with #Consumer
CNBC
15 hours ago
- Business
- CNBC
An options trade that bets on consumer stocks rebounding — while hedging risk
Seven months into the year, the total return for the S & P 500 is roughly 9%. The benchmark fell nearly 19% peak to trough into the post-liberation day lows, and has rallied 27% since. Given the U.S. economy's heavy reliance on consumer activity, which accounts for approximately 70% of gross domestic product, it's notable that the discretionary sector has significantly underperformed. Whereas the S & P 500 is trading at all-time highs, the consumer discretionary sector — which fell more than 26% peak-to-trough between Dec. 17 and April 8 — has yet to recover fully. It's more than 6% below its 2024 highs. Economic data has been pretty decent. Growth has exceeded expectations. Federal deficits, aided in part by tariff-related revenue, have been slightly lower than expected. Inflation, which hit levels not seen in the United States since the late 1970s in 2022, has also been moderating in the past several months. This has prompted many, the President most notably, to insist that the Fed should cut rates. Thankfully, the nation's central bank has thus far not bowed to pressure from the administration to do so. First, lower inflation — which we're grateful for — is not the same as deflation; that is, falling prices. Consequently, the cost of living remains a struggle for many as real wages declined between the second quarter of 2021 and mid-2023. Second, inflationary policy impacts remain. That's not from the Fed necessarily, which has maintained a relatively steady and predictable policy path and allowed its balance sheet to shrink, but from the Federal government, which continues on a fiscally unsustainable path. It's not just money printing and ZIRP (zero interest rate policy) that is inflationary; massive deficit spending is too. Third, even if the Fed cuts short-term rates, the cost of borrowing for durable goods and housing is driven by the longer end of the curve. Still, consumer and business sentiment have been improving, so I would expect consumer stocks to narrow their gap of underperformance relative to the S & P 500 - hopefully because they rally and not due to a fall in other sectors! One way to make a modestly bullish bet in the consumer sector is with a call spread risk reversal in Consumer Discretionary Select SPDR Fund (XLY). Purchasing an at the money call, partially financed through the sale of an 18 delta downside put and an 18 delta upside call. In the example I'm providing below, I've selected September "regular way" expiration. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
NZ Herald
4 days ago
- Business
- NZ Herald
Could you get a cheaper plan for electricity? Most companies won't tell - Power to the People, part 2
You can use the Herald interactive graphic below to see which companies will do a best-plan check, which won't, and their responses when asked why not, along with their answers to other questions about energy hardship. Some companies said they checked best plans for customers in a different way - others claimed it was too hard to find the cheapest price for each customer. Consumer NZ says nine out of 10 people could pay less for power if they changed plans or providers. So while prices have jumped and winter spikes our usage, advocates say power companies have a responsibility to ensure customers are getting the best deal. And while Consumer runs its Powerswitch tool to compare prices and plans in the market, Powerswitch manager Paul Fuge told the Herald it should not be a customer's responsibility to understand the market so they could decide on the best plan for themselves. Consumer's 2025 annual energy survey found 20% of people have had difficulty paying their power bill in the past year. Statistics New Zealand data for June showed power prices had jumped 10.4% in a year. And MBIE's last energy hardship report in 2022 showed 110,000 households could not keep warm. Fuge said many people were paying more than they needed to and would not even know they could get a better deal. 'Our concern is particularly for those who are unaware that they could be paying significantly less." He said 93% of people who used Powerswitch found potential savings of $100 or more, and the average savings from switching was between $400 and $500 a year. 'For households already struggling, paying hundreds more than necessary for a basic service like electricity is something we should be working to change.' Fuge said 12% of Powerswitch users had given feedback saying they had used the information from the comparison tool to negotiate a better deal with their existing retailer. Consumer NZ's Paul Fuge says regular plan checks should be standard practice across the industry, not the exception. Photo / Supplied 'That's a great result. And it shows the opportunity is there, but the responsibility shouldn't fall solely on consumers to seek it out. Regular plan checks should be standard practice across the industry, not the exception.' Jake Lilley, from financial mentoring charity Fincap, said retailers had a responsibility because they were providing an essential service. 'Energy is an essential service, and there shouldn't be that loyalty tax built into it. 'There's also an information asymmetry that's involved; providers should have a better overview of what's likely to be the best plan. 'There are always some variables, but they should be helping their customers to get onto that plan or even potentially defaulting people to that best plan, because they have the ability to unilaterally change the price. Why don't they apply savings rather than putting prices up?' Fuge said people often did not realise their power companies were not proactively checking and informing them if they were on the best plan. 'We often find that many people assume their power company is already doing this for them. In reality, some retailers do it proactively, some only if asked. What really frustrates people is finding out—not only that they could save by switching providers—but that they could have been on a cheaper plan with their current provider." Says Fincap's senior policy advisor Jake Lilley: 'There's also an information asymmetry that's involved; providers should have a better overview of what's likely to be the best plan.' Photo / Fincap The Herald has worked with advocacy group Common Grace to analyse each power company's response to a list of questions on energy hardship. Common Grace's co-director Kate Day said the price check responses left her disappointed. 'Only two companies checked before winter. So Flick and [prepay service] Wise both said that they did check before winter for all their customers, and actually Flick had a practice of checking proactively every three months, which has been something they've promoted on their website. 'Among the other companies, there were some that do have at least a process of checking annually, that's Genesis, Frank, Ecotricity and Toast. 'But among the other companies, they never do this proactively, unless when they're required under the Consumer Care Obligations to check for customers who directly ask them, or for people who are in hardship. 'In the context of rising prices and predictable increased hardship, a very basic step they can take is just to make sure that all their customers are definitely on the cheapest plan that they offer to prevent people from falling into debt, being overcharged, and becoming further entrenched in hardship. 'If companies really care and want to reduce harm this winter, that could have been something that they chose to do.' 'The consumer knows best' However, the chief executive of the organisation representing generators and retailers said it was difficult to identify the best plan, and forcing companies to do so could just end up hurting customers. 'Finding the 'right' plan for a customer is not as simple as finding the cheapest option 'today',' Bridget Abernethy, chief executive of Electricity Retailers' and Generators' Association of New Zealand (Erganz), told the Herald. 'Many different plans are now available to consumers, making it difficult for retailers to predict the best option for each customer based solely on usage statistics. A household's circumstances and behaviours will influence the best plan choice for that household, so the consumer often makes the best plan choices through engagement with a retailer or by using the Powerswitch tool. Bridget Abernethy, chief executive of Erganz, says it is difficult for power companies to identify the best plan for their customers, and forcing companies to move customers could just end up hurting them. Photo / Supplied 'Retailers will always discuss the available plan options with customers who inquire, but price is not always the primary factor in plan selection.' Abernethy said mandating retailers to move customers onto a cheaper plan automatically could lead to unintended consequences, like a customer suddenly being moved to a high-user plan. 'Customers may suddenly change from low to high electricity users due to a change in circumstances, or customers could end up paying more if they are switched to a time-of-use plan but didn't shift their usage to outside of peak times,' she said. Abernethy said the best way for retailers to make sure their customers were on the right plans was for those customers to call and discuss it. She acknowledged it could be hard for people to understand their power bills, which was why the industry had invested in EnergyMate, an in-home coaching service to help people get the most out of electricity services. What the power companies say Power company Flick, now owned by Meridian, checks every 90 days if its customers are on the best plan and will tell them if they could be on a better one. These quarterly checks include looking at the times of day each customer typically uses power, and whether they would be better off on a 'flat' or 'off-peak' plan. 'This [Best Plan Promise] initiative is one we proudly offer to all our customers, and we would welcome more electricity retailers taking similar action in Aotearoa New Zealand,' Naz La Gamba, head of Flick Electric, told Common Grace and the Herald in March. In May, Flick was sold to Meridian. It is not accepting new customers and its current customers will be transferred to Meridian. When asked what would happen to the Best Plan Promise under new ownership, Meridian said, 'all Flick plans end as soon as those customers are migrated to Meridian'. Wise, which also did a best-plan check, said it would continue to do so and would make sure all its customers were on the most suitable plan for their usage before June 1. Genesis said it, along with its subsidiaries Frank Energy and Ecotricity, did an annual check, and this was scheduled for August. The company said its customer service staff also reviewed accounts when customers phoned. Contact said, 'Customers can also track their usage on an hourly, daily or monthly basis through our customer app, EnergyIQ. They can also access a forecast on upcoming bills based on current usage, along with energy-saving tips, insights and weather forecasts.' Meridian said it, and its subsidiary Powershop, would not check unless customers called to ask or a customer was in hardship. Mercury said it wouldn't, but it 'endeavours to ensure that any customer who is receiving support from our Here to Help team is on the plan that best suits their energy usage and personal needs'. Pulse Energy Alliance also wouldn't, but said, 'When engaging with our customers, we do check to make sure they are on the right plan for their home. Pulse pointed to its recently launched Power Shift plan with half-price weekends and discounted rates. Nova wouldn't do a best-plan check, but said its support teams provided 'a personalised approach when dealing with customers who contact us for advice or are experiencing payment difficulties'. Electric Kiwi said its plans were 'already deliberately simple'. Switch Utilities gave a similar answer, pointing to one plan for low users and another for standard users. Electric Kiwi said: 'Often the best prices can only be achieved by behaviour change. For example, our MoveMaster plan has very large incentives for off-peak usage, but could be the wrong plan for a customer who is not aware of, or able to access, the benefit from this. We also provide usage tracking and tools to help people choose what suits them best.' And Switch said, 'We ensure people are on the correct plan at sign up, and allow people to switch between low and standard as they need. Most people won't need to change often or at all, unless their usage patterns change remarkably.' Toast also pointed to its simple two-plan structure, but said it does check its customers' usage once a year and when they are first signed onto a plan. 'We check in spring as this gives us a good lens to gauge last winter's use [which effectively dominates the annual usage]. 'As we have a very simple offering, we would want to be sure customers are either well under or well over the low/standard user threshold before recommending that they change plans. Contact's response echoed Abernethy's: 'To compare past energy use against current plans is not a one-size-fits-all approach'. 'Circumstances can change, such as a change of address, a new baby, a new job, or a change of numbers in the household. Our Time of Use plans give customers free energy in return for off-peak use.' Experts say it shouldn't be difficult Fuge said energy providers had 'all the necessary information' to check if their customers were on the best plan. He said there was little excuse for the majority of companies not doing it. 'They absolutely can – and they should. It shouldn't be difficult at all,' he said. 'If Consumer NZ can do it through Powerswitch – often with less data than retailers have access to – then there's no reason retailers can't do the same. 'Providers have all the necessary information: their customers' usage history and the details of their own plans. The capability is certainly there.' And Fuge said that comparing a customer's past usage to current usage was often just a distraction. 'What really matters is matching a customer's usage pattern –whether past or present – to the pricing structure that offers them the best value. Most people's electricity use doesn't change dramatically month to month, and using that data to check whether they're on the most cost-effective plan is both possible and reasonable. Paul Fuge from Consumer NZ says energy providers have 'all the necessary information' to check if their customers are on the best plan. Photo / 123RF 'So yes, in our view, there's little excuse. Retailers could and should be more proactive in helping customers avoid paying more than necessary. Relying on customers to navigate complex plans or monitor shifting tariffs on their own isn't good enough, especially when many households are already under financial strain.' Fuge said smart meter data, which captured usage on a half-hourly basis across the year, along with modern data analysis tools made it 'entirely feasible' for retailers to do a best-plan check. 'This kind of analysis is well within the capabilities of all major electricity retailers,' he said. 'Genesis and Toast say they carry out annual reviews, and that's a good thing. Toast's reasoning– that winter usage dominates the annual profile – makes sense from a technical standpoint. Winter is generally the highest cost months for households, so analysis in spring would offer a full view of the previous winter's consumption." 'Flick's approach shows it's entirely possible. The tools and data are there, and it's well within the capabilities of all major electricity retailers to regularly review customer plans against usage and recommend better options. Fuge noted Flick had the highest customer satisfaction score among retailers in Consumer's most recent survey, data he said was unsurprising. 'It is a shame that the two retailers with the highest customer satisfaction scores – Flick and Frank Energy – have both announced they are leaving the market.' And reacting to those providers who pointed to the simplicity of their plan structures, Fuge said this could be 'an excuse for inaction'. He added, 'It's good that consumers have a choice – some value simplicity and may knowingly pay a little more for a straightforward, easy-to-understand plan. Others are quite happy to engage with more complex pricing structures if it means saving money. Fincap's Jake Lilley says if power companies find it hard to look at a customer's usage and figure they'd be better off on another plan, those customers will have an even harder time. Photo / NZME 'But simplicity shouldn't be used as an excuse for inaction. Even among 'simple' plans, there can still be significant price differences depending on a customer's usage pattern. Retailers have a responsibility to help customers understand those differences.' Lilley, from Fincap, said if a retailer believed it was too difficult to check if a customer was on the best plan, it would be even more difficult for a customer to check themselves. 'It points to issues with the whole set-up of the market if an energy provider is feeling they can't do that, because you can imagine then how hard it is to the average punter out there who's trying to read an energy bill and make sense of it and make sense of what to do next. 'Energy retailers should be experts in these things and be able to help their customers rather than all of us having to be experts to engage with an essential service and get a fair price from it. 'People are juggling a whole lot, life is messy, and then having to constantly keep an eye on the price of your essential services - there's another burden on people that they really shouldn't have.' Lilley said people should end up on the best plan by default. 'Even I, as a person working for a decade looking at energy affordability, struggle to navigate and find the exact best price for me. I can maybe get an idea of what's reasonable.' Monday: As Kiwis battle rising electricity bills, campaigners call for change Tuesday: Could you get a cheaper plan for electricity? Most companies won't tell Wednesday: Major company moves to stop disconnecting customers in hardship Thursday: Why our biggest power companies should be broken up (and why they shouldn't)
Business Standard
7 days ago
- Business
- Business Standard
Future Consumer reports consolidated net loss of Rs 18.60 crore in the June 2025 quarter
Sales rise 5.50% to Rs 112.24 croreNet Loss of Future Consumer reported to Rs 18.60 crore in the quarter ended June 2025 as against net loss of Rs 15.80 crore during the previous quarter ended June 2024. Sales rose 5.50% to Rs 112.24 crore in the quarter ended June 2025 as against Rs 106.39 crore during the previous quarter ended June EndedJun. 2025Jun. 2024% 5 OPM %-5.21-0.70 -PBDT-19.49-11.91 -64 PBT-24.08-15.77 -53 NP-18.60-15.80 -18 Powered by Capital Market - Live News
NZ Herald
25-07-2025
- Business
- NZ Herald
Supermarkets plead guilty to pricing errors, Consumer NZ calls for penalties
A dodgy multibuy refers to a situation where the individual price and the multibuy price don't add up to a saving. A mince special where a tray of meat was $4 or people could buy three for $20. Photo / RNZ Consumer NZ pointed to a mince special where a tray of meat was $4 or people could buy three for $20. In another case, packaging seemed to be making a confusing difference. Two individual bags of Gingernuts were selling for $5 but the club price for a 500g twin-pack was $5.59. The Gingernuts that were selling for $5 but the club price for a twin-pack was $5.59. Photo / RNZ Sometimes the price on the shelf tag does not match what you pay at checkout. In this case, supplied by Consumer, the price tag on the shelf said $27, but the customer paid more than $35 at the checkout. A box of Coca Cola a customer paid more at checkout for than the shelf price tag. Photo / RNZ Sometimes it's just hard to work out what the price is. Consumer provided an example of double cream brie 'reduced' to $10.60 for a quick sale – or was it on sale for $9.80? Sometimes it seems as though there are multiple labels for the same item. Double cream brie with two prices. Photo / RNZ In this case, two signs had two different prices for a single avocado. 'One said $1.69. The other said $1.99,' Consumer NZ spokesperson Abby Damen said. A sign saying a single avocado is $1.99. Photo / RNZ 'The customer was charged $1.99. She returned two days later to ask what could be done about the pricing error. 'She was offered a refund of the price difference but after pointing out the supermarket's new refund policy, she was refunded $2 and also kept her avocado.' Chief executive at Consumer Jon Duffy said anyone charged more than the shelf price was entitled by law to a refund of the difference. He said both supermarket chains promised a full refund in that scenario, but consumers sometimes had to know what was available. A Foodstuffs spokesperson said with more than 14,000 products in a typical supermarket, and prices changing frequently due to supplier costs, promotions or new product lines, pricing was a complex job. 'But for our customers, it's simple. They rightly expect the price on the shelf to match what they pay at the checkout,' he said. 'We take pricing accuracy as seriously as health and safety, aiming for zero errors. 'Across our local, family-owned stores, we manage tens of thousands of price labels and process millions of transactions every week, and we've invested in better systems, daily checks and electronic shelf labels to help get it right. 'If we do get it wrong, our policy is that the customer gets a refund and keeps the product. We've also strengthened staff training and store processes to make sure pricing is clear and accurate.' Woolworths said it had more 3.5 million transactions in stores weekly 'and sometimes errors do occur'. 'When they do, we try to make things right, through our long-standing and market-leading refund policy. Under that policy, if a customer is charged more than the advertised price for a product, they get a full refund and can keep the product.' Duffy said Consumer had received 20 complaints about supermarket pricing since Tuesday. A normal rate would be two a day, he said. -RNZ
Otago Daily Times
25-07-2025
- Business
- Otago Daily Times
Supermarket pricing errors to be wary of
By Susan Edmunds of RNZ Consumer NZ says supermarkets are still making pricing errors, despite increasing pressure and scrutiny on them. Charges have been filed and a number of supermarkets have pleaded guilty to breaching the Fair Trading Act due to inaccurate pricing and misleading specials. But Consumer NZ says misleading specials are still costing shoppers tens of millions of dollars a year and has launched a petition calling for tougher penalties for breaches of the act. It provided examples of a number of ways that people could be caught out by misleading signage in supermarkets. Dodgy multibuy A dodgy multibuy refers to a situation where the individual price and the multibuy price don't add up to a saving. Consumer NZ pointed to this mince special where a tray of meat was $4 or people could buy three for $20. In another case, packaging seemed to be making a confusing difference. Two individual backs of Gingernuts were selling for $5 but the club price for a 500g twin-pack was $5.59. Different pricing Sometimes the price on the shelf tag does not match what you pay at checkout. In this case, supplied by Consumer, the price tag on the shelf said $27, but the customer paid more than $35 at the checkout. Confusing Sometimes it's just hard to work out what the price is. Consumer provided an example of double cream brie was "reduced" to $10.60 for a quick sale - or was it on sale for $9.80? Mismatches Sometimes it seems as though there are multiple labels for the same item. In this case, two signs had two different prices for a single avocado. "One said $1.69. The other said $1.99," Consumer NZ spokesperson Abby Damen said. "The customer was charged $1.99. She returned two days later to ask what could be done about the pricing error. She was offered a refund of the price difference but after pointing out the supermarket's new refund policy, she was refunded $2 and also kept her avocado." Chief executive at Consumer Jon Duffy said anyone who was charged more than the shelf price was entitled by law to a refund of the difference. He said both supermarket chains promised a full refund in that scenario, but consumers sometimes had to know that was what was available. A Foodstuffs spokesperson said with more than 14,000 products in a typical supermarket, and prices changing frequently due to supplier costs, promotions or new product liens, pricing was a complex job. "But for our customers, it's simple. They rightly expect the price on the shelf to match what they pay at the checkout," he said. "We take pricing accuracy as seriously as health and safety, aiming for zero errors. "Across our local, family-owned stores, we manage tens of thousands of price labels and process millions of transactions every week, and we've invested in better systems, daily checks and electronic shelf labels to help get it right. "If we do get it wrong, our policy is that the customer gets a refund and keeps the product. We've also strengthened staff training and store processes to make sure pricing is clear and accurate." Woolworths said it had more 3.5 million transactions in our stores each week "and sometimes errors do occur". "When they do, we try to make things right, through our long-standing and market-leading refund policy. Under that policy, if a customer is charged more than the advertised price for a product, they get a full refund and can keep the product." Duffy said Consumer had received 20 complaints about supermarket pricing since Tuesday. A normal rate would be two a day, he said.
