Latest news with #discretionaryspending
CTV News
2 days ago
- Health
- CTV News
Crackdown on overtime in B.C. hospitals
Vancouver Watch The province's two biggest health authorities are quietly cutting costs by limiting overtime and other discretionary spending on staffing.
Yahoo
4 days ago
- Business
- Yahoo
Inflation Is Ticking Upwards. Should Costco Wholesale Investors Be Worried?
Key Points Costco Wholesale enjoys competitive advantages due to its size, but rising inflation could slow discretionary spending at its stores. The stock has been a huge winner, but it's expensive at this point. Costco must produce the growth to justify its valuation, or the stock may stumble. 10 stocks we like better than Costco Wholesale › Inflation has been a significant problem for millions of Americans over the past five years. Research from The Motley Fool tracked inflation and its impact on the stock market. Historically, the S&P 500 index performs its best when inflation in the U.S. is within a range of 2% to 3%. If inflation is too high, it can cause the Federal Open Market Committee (FOMC) to raise interest rates, much as it did in 2022. And higher rates can weigh on stock valuations. Costco Wholesale (NASDAQ: COST) has been a fantastic stock to own. Shares have returned over 200% over just the past five years, easily outperforming the broader market over that time. But recently, inflation has begun ticking higher again, hitting 2.7% as of June. Should Costco investors worry about the stock? Here's what you need to know. How inflation could affect Costco Wholesale Costco Wholesale is a leading big-box retailer. Shoppers must purchase a membership to shop at the company's warehouse-style stores. Costco generally sells its merchandise at razor-thin margins, making the bulk of its profits on membership fees. The company is one of the world's largest retailers, so it can source goods more cheaply than its smaller competitors and sell at lower prices. Inflation raises costs for everyone, like a tide raising every boat. Therefore, inflation isn't necessarily a bad thing for a pricing leader like Costco. Additionally, a company selling bulk quantities can attract consumers looking for a deal. However, too much inflation can hurt the business. Costco also sells a lot of discretionary items, things people are less likely to buy when money is tight. Its stores are known to attract shoppers with higher incomes, but that doesn't make the company immune to a recession. If inflation runs hot enough that high earners feel the financial strain, it could stunt sales of non-grocery or household merchandise. At the moment, Costco seems to be doing just fine. The company's July 2025 sales checked in at $20.89 billion, an 8.5% jump from last year. The stock's epic run has lifted its valuation There's little doubt that Costco Wholesale is a world-class business with a loyal following that's rare for a retailer. People flock to Costco for deals, and even to grab a $1.50 hot dog, a novelty it's become famous for. The company doesn't even spend money on sales or marketing -- its remarkable success is all organic and via word of mouth. That said, the stock's epic run these past five years has inflated its valuation. Costco's price-to-earnings (P/E) ratio has stretched from about 40 five years ago to 55 today: A high P/E ratio alone doesn't make a stock expensive if the company can grow fast enough to justify it. But analysts estimate Costco, a large and mature company, will increase earnings at an annualized pace of 9% over the next three to five years. That gives it a PEG ratio of about 6.0, signaling that the stock is very expensive for the growth you're likely to see. Should investors worry? Nobody can predict short-term stock prices, or when a stock headed in one direction might turn and go in the other. Instead, I like to weigh the potential upside versus the possible downside. In Costco's case, it seems the stock, which has traded at an average P/E ratio over the past decade of 37.5, is more likely to revert toward its long-term norms than to continue into the stratosphere. If inflation continues to rise, it could start to squeeze discretionary spending enough to slow Costco's business. That may happen anyway if the economy slips into a recession. A decade from now, Costco will probably still be a fantastic business. However, it's fair to worry about the stock's short-term prospects at its current valuation, and against an increasingly uncertain economic backdrop. Should you buy stock in Costco Wholesale right now? Before you buy stock in Costco Wholesale, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Costco Wholesale wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 11, 2025 Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy. Inflation Is Ticking Upwards. Should Costco Wholesale Investors Be Worried? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-08-2025
- Business
- Yahoo
Calm Stores, Clear Sites: New Research Highlights How Seniors are Redefining Retail Expectations
SYDNEY, Aug. 6, 2025 /PRNewswire/ -- While many Australians are adjusting their spending in response to rising cost-of-living, new research from Manhattan Associates Inc. (NASDAQ: MANH) reveals that older Australians continue to play a significant role in discretionary retail. Backed by financial stability and a clear preference for personalised, supportive in-store experiences, over-55s represent a key growth opportunity for retailers who are willing to meet them on their terms. Shoppers aged 55+ are spending, but their expectations are high According to the research, 68% of mature-aged shoppers reported either no impact or improved confidence in their personal finances, despite ongoing interest rate pressures. Notably, 64% also said that special offers and promotions influence their spending decisions in-store, demonstrating a willingness to engage, provided the experience is worthwhile. "These shoppers are among the most financially secure and active in the retail space," said Raghav Sibal, Vice President of APAC at Manhattan Associates. "But they're also more discerning. They're not shopping just for products, they're shopping for a comfortable, helpful and human experience." The research revealed that older Australians value a quieter, calmer in-store environment. Two-thirds (66%) of shoppers aged 55 and over said they would prefer retailers to turn down in-store music or avoid it altogether, with one in four (24%) reporting they have actively avoided stores that feel too loud or chaotic. In addition to creating the right environment, staffing also plays a critical role in shaping the in-store experience for senior shoppers. Only 26% of over-55s said they like to shop entirely independently. Most prefer some level of support, particularly when engaging with new technologies or unfamiliar products. Encouragingly for retailers, 41% of mature-aged consumers said they would shop in-store more often if there were more staff available to assist. "Retailers sometimes assume that mature-age shoppers want to be left alone, but the data tells a different story. This group values human connection, reassurance, and calm environments. Creating in-store experiences that reduce sensory overload and provide access to well-informed, available staff will go a long way in driving loyalty and repeat visits," said Sibal. Technology should support, not replace, human interaction Senior shoppers are not averse to using technology instore with 73% of shoppers being comfortable using self-checkouts and similar solutions. However, of those surveyed 40% of shoppers said that they usually prefer or require some assistance when using these tools. "Mature-aged Australian shoppers are often willing to try and use instore technologies to speed up their retail experience, however they often need to be supported by knowledgeable staff in-store," said Sibal. "It's that personal interaction that makes the difference, someone who can answer questions or offer guidance." Older Australians are increasingly confident online, but want reassurance and clarity Contrary to common assumptions, senior shoppers are far from digital holdouts. In fact, 65% of Australians aged 55 and over now say they are more likely to shop online due to factors like convenience, better access to deals and broader product selection available through digital channels. This growing digital fluency is also reflected in user experience, with 57% of mature-age shoppers reporting they rarely or never encounter issues when shopping online. Only 10% say they frequently run into problems, highlighting a general comfort with digital retail. However, attracting and retaining these shoppers requires retailers to understand the needs of older shoppers. A third (32%) say they would be encouraged to shop online more often if retailers provided clear reassurance around website security. Meanwhile, 28% want more detailed product descriptions and customer reviews to support informed decision-making and 20% said easier-to-navigate websites would increase their likelihood to purchase. "We're seeing a generational shift in how older Australians interact with digital commerce. This group is highly pragmatic. They're not just looking for tech-savvy interfaces, rather they want clarity, trust and a sense of control. Retailers that invest in intuitive website design, transparent product information and strong cybersecurity messaging are more likely to win their confidence and their business," concluded Sibal. For more information, please visit Methodology: Manhattan Associates surveyed 500 Australian consumers over the age of 55. ABOUT MANHATTAN ASSOCIATESManhattan Associates is a global technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers. Manhattan Associates designs, builds, and delivers leading edge cloud and on-premises solutions so that across the store, through your network or from your fulfillment centre, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit View original content to download multimedia: SOURCE Manhattan Associates Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-07-2025
- Business
- Yahoo
India's TCS misses first-quarter revenue view
BENGALURU (Reuters) -India's Tata Consultancy Services reported lower-than-expected first-quarter revenue on Thursday as clients remained cautious about discretionary spending amid tariff-related uncertainty. Consolidated sales at India's largest IT services firm by revenue rose 1.3% year-on-year to 634.37 billion rupees ($7.40 billion) in the June quarter. Analysts, on average, expected 646.66 billion rupees, as per data compiled by LSEG. ($1 = 85.6690 Indian rupees) Sign in to access your portfolio
CNA
10-07-2025
- Business
- CNA
India's TCS misses first-quarter revenue view
BENGALURU :India's Tata Consultancy Services reported lower-than-expected first-quarter revenue on Thursday as clients remained cautious about discretionary spending amid tariff-related uncertainty. Consolidated sales at India's largest IT services firm by revenue rose 1.3 per cent year-on-year to 634.37 billion rupees ($7.40 billion) in the June quarter. Analysts, on average, expected 646.66 billion rupees, as per data compiled by LSEG.
