Wesfarmers warns of Morricession

WES with the warning today:

OMICRON cases will peak soon but they will also remain elevated for months given the private sector lockdown and second stage surge as schooling resumes. So expect a slew of similar warnings.

I remain of the view that Q1 will return us to the “Morricession“, the phenomenon in which a contraction in GDP is triggered exclusively by an idiot gyrating the macroeconomic levers:

Houses and Holes

Comments

  1. Question on Inflation
    Yesterday I went to Bunnings to pickup some pool Chlorine, pool was looking a bit cloudy and I was out of Chlorine.
    Normally the stuff I use (to shock the pool) costs about $34 and lasts me about 4 to 6 months. Yesterday I couldn’t find the usual stuff, a staff member told me that they didn’t have that in stock and suggested I use an alternate product cost $82 for the same amount. (turns out they didn’t have that either). The product they did have in stock was over $100, I figured I’d pick it up at the local pool store but discovered they wanted $133 for their equivalent to what I used to pay $34 …f’me what’s going on here?
    Is this sort of insane price inflation happening in other sectors or products?

  2. Managers at most companies would be shown the door for quarterly performance like this. They wouldnt have “states” to point the fingers at and they wouldn’t get away with a distraction like djoker.

  3. happy valleyMEMBER

    Now that Josh Rainbowberg has recovered from ScoVID-19, the LNP will wheel him out (and no prompting needed for immodest Josh) to remind us how lucky we are to have the best economic managers at the controls and that any problems are Labor’s fault.

  4. As bad as he is I don’t think you can blame this on Morrison. People went hog wild last year at KMart/Target etc, there’s only so much rubbish you can buy, and that is if they have any stock. So probably need to wait a bit for that chinese junk to break.

    • That and the trading update said that the closure of some stores also contributed to the decline in sales. The absenteeism and people not going to the shops really only affected the second half of December, but the effect will be most seen post New Year.