Category: Stock Market

There is a quiet fantasy that sits behind most income investing. You build a portfolio big enough that the dividends alone cover your bills. You never sell a single unit. The capital stays intact, and the cheques keep landing.

It is a lovely idea. It is also more expensive than most people realise.

So let’s run the honest maths on whether you could actually live off ASX ETF dividends in retirement.

What the number actually is

Start with the income target. The ASFA Retirement Standard reckons a comfortable retirement costs roughly $54,840 a year for a single, and $77,375 for a couple who own their home. 

Now assume a conservative grossed-up dividend yield of 4%. That means for every $100,000 invested, you collect about $4,000 a year in income and franking credits combined.

To generate $54,840 from a 4% yield, you need about $1.37 million invested. For a couple chasing $77,375, the figure climbs to roughly $1.93 million.

Prefer a modest lifestyle? The targets fall to about $33,470 for a single and $47,999 for a couple, which still call for around $837,000 and $1.2 million respectively. 

Here is the uncomfortable part. ASFA’s own lump-sum guide suggests just $630,000 for a single and $730,000 for a couple. The difference? Those figures assume you draw down your capital and collect a part Age Pension. Living on dividends alone, capital untouched and no pension, asks for nearly double.

Yield, franking, and the inflation trap

A few mechanics make or break this strategy.

Dividend yield is simply the annual income divided by the price you paid. A fund like the Vanguard Australian Shares High Yield ETF (ASX: VHY) tilts toward higher-paying names such as the major banks and miners, which lifts that figure above the broad market.

Franking credits do some of the the heavy lifting in Australia. When a company pays tax before passing on a dividend, it attaches a credit. A retiree on a low tax rate can often have those credits refunded in cash – which is why a grossed-up yield matters far more than the cash figure alone.

Then comes the threat everybody needs to budget for: inflation.

The $54,840 you need today will not stretch nearly as far in 15 years’ time. If your dividends stay flat, your real income shrinks every single year. The saving grace is that Australian dividends have tended to grow over time as company profits rise – but that growth is never guaranteed, and a weak year for the banks can dent it sharply.

This is why income alone is rarely the whole answer. Globally diversified options, such as the Betashares Global Royalties ETF (ASX: ROYL), or the yield-focused funds like Betashares S&P 500 Yield Maximiser Complex ETF (ASX: UMAX), can spread the load across sectors and geographies.

Foolish takeaway

Can you live off ASX ETF dividends in retirement? Yes – provided you reach the finish line with enough capital and a portfolio whose payouts keep pace with the cost of living.

The honest maths simply says the bar sits higher than the headline super numbers imply. Roughly $1.37 million for a comfortable single retirement, funded entirely by dividends, is a serious target.

None of this accounts for sequencing risk, possible changes to franking rules, or how much you actually hold at preservation age. Treat 4% as a deliberately cautious anchor, not a promise.

Build the capital first. The income, reassuringly, tends to look after itself.

The post Can you live off ASX ETF dividends in retirement? Here’s the honest maths appeared first on The Motley Fool Australia.

More reading

• How to make $2,000 of monthly passive income from ASX shares
• Which ASX ETF should I buy?
• Top 10 ASX shares bought and sold by investors in May
• 5 steps to bring in $1,000 per month in passive income
• Got $50k of savings? Here’s how I’d turn that into passive income of $10k a year

Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned.. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you have any unused super contribution limits, you could be about to lose a valuable tax opportunity.

The carry-forward contribution rules allow some Aussies to put extra money into super using contribution room left over from earlier financial years.

But that unused room doesn’t last forever.

Any amount left over from the 2020-21 financial year will disappear after 30 June 2026.

Although you will need to act sooner than that because super funds generally set their payment deadlines days before the financial year ends.

How does the super rule work?

The concessional contribution limit is $30,000 for the 2025-26 financial year.

That figure includes the super paid by your employer, any salary sacrifice payments, and personal contributions you plan to claim as a tax deduction.

You may also be able to contribute more than $30,000 by using unused cap amounts from the previous 5 financial years.

To qualify, your total super balance has to be below $500,000 at the end of the previous financial year.

The oldest unused amount is used first.

So, if you still have unused contribution room from 2020-21, it will be used before any amounts left over from later years.

Once 30 June passes, any remaining 2020-21 amount will be gone.

The maximum amount available to some people this year is $167,500, including the current $30,000 cap.

If you’re not sure, you can check your available concessional contribution amount through the ATO section of myGov.

Why put more money into super?

For many people, the biggest reason is tax savings.

Concessional contributions are generally taxed at 15% inside super. That is likely going to be lower than the tax rate you pay on part of your normal income.

For example, someone paying a marginal tax rate above 15% could reduce their tax bill by making an eligible contribution into super.

The carry-forward rules can be helpful if you previously worked part-time, spent time out of the workforce, or could not afford extra contributions.

But adding extra money into super won’t be the right move for everyone.

Keep in mind, the money is generally locked away until you meet a condition of release, usually when you retire. Going over your available cap may also lead to extra tax and paperwork.

Do not wait until 30 June

Do not assume a payment made on 30 June will count towards the current financial year.

A contribution counts when the super fund receives the money, not when it leaves your bank account.

Some funds have already published earlier cut-off dates, depending on how the payment is made.

You will also need to submit a notice of intent form to your fund if you plan to claim a personal contribution as a tax deduction.

With the oldest unused amounts about to expire, checking your available cap and your fund’s deadline could save you from missing out.

The post This major super tax break could disappear in days. Are you about to lose it? appeared first on The Motley Fool Australia.

More reading

• 3 world-class ASX ETFs to help build a winning portfolio
• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy now
• 3 ASX 200 shares, including Macquarie and BHP, smashing new 52-week-plus highs today
• This ASX 200 mining stock is up 44% in a year. Why is it climbing again?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Do you want to build a winning portfolio?

ASX exchange traded funds (ETFs) can be a simple way to add global exposure, quality filters, and long-term growth potential without having to pick every individual stock yourself.

But which ones could be buys?

Here are three world-class ASX ETFs that could be worth a closer look.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT)

The VanEck Morningstar International Wide Moat ETF takes a more selective approach to global investing.

Rather than simply buying the biggest companies in the world, the fund looks for international businesses that combine quality with attractive valuations. This can lead it into a very different mix of names from a standard global index, with holdings such as NXP Semiconductors (NASDAQ: NXPI), Etsy (NYSE: ETSY), and Novo Nordisk (NYSE: NVO).

The common thread is durability. The fund is looking for companies with characteristics that can help them defend profits over time, whether that comes from strong brands, valuable intellectual property, scale, loyal customers, or high switching costs.

For investors, that can be a powerful combination. A portfolio of businesses with strong competitive positions and valuation discipline could be well placed to compound over the long term.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Another ASX ETF that could help strengthen a portfolio is the Betashares Global Cash Flow Kings ETF.

This fund focuses on global companies that generate strong free cash flow. Its holdings include ASML Holding (NASDAQ: ASML), Palantir (NASDAQ: PLTR), and Visa (NYSE: V).

Free cash flow is important because it shows how much money a business can generate after funding the spending needed to keep operating and growing.

Companies with strong free cash flow can have more control over their future. They may be able to invest in new opportunities, strengthen their balance sheets, buy back shares, pay dividends, or make acquisitions without relying too heavily on outside funding.

That can be especially valuable when markets become more selective and investors start paying closer attention to financial quality.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A third ASX ETF to look at is the Vanguard MSCI Index International Shares ETF.

This fund is the simplest of the three, but that is arguably part of its strength. It gives investors broad exposure to developed markets outside Australia, including the United States, Europe, and Japan.

Its holdings include NVIDIA (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT).

The Australian share market is heavily influenced by banks, miners, supermarkets, and a relatively small number of large companies. This fund gives investors access to a much wider opportunity set.

That includes global technology leaders, healthcare giants, industrial businesses, consumer brands, and financial companies that are not available on the ASX.

The post 3 world-class ASX ETFs to help build a winning portfolio appeared first on The Motley Fool Australia.

More reading

• 3 high-quality ASX ETFs at 52-week highs I’d still buy
• New to ASX ETFs? These 4 products could be a good start
• 5 ASX ETFs for beginners with $500
• Which ASX ETF should I buy?
• 3 world-class ETFs for Australian investors

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Apple, Etsy, Microsoft, NXP Semiconductors, Novo Nordisk, Nvidia, Palantir Technologies, and Visa. The Motley Fool Australia has recommended ASML, Apple, Microsoft, Nvidia, VanEck Morningstar International Wide Moat ETF, Vanguard Msci Index International Shares ETF, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why is the ASX 200 hitting a fresh 2 month high today?
• Diamond Infraco’s $5.10 offer for Atlas Arteria now unconditional
• Nickel Industries posts US$80m EBITDA and HPAL progress in operating update
• Growthpoint Properties Australia delivers leasing momentum, maintains FY26 guidance
• Sims lifts outlook as North American metals drive gains

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation, SiteMinder, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended ARB Corporation and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations. This has led to a number of broker notes being released this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

Goodman Group (ASX: GMG)

According to a note out of Citi, its analysts have been looking at the industrial property market and are pleased with what they saw. They note that demand continues to outstrip supply, which is supporting rental growth. In addition, the broker is very positive on Goodman due to its 6.4GW power bank and $14 billion+ development pipeline. It is just waiting for news on lease execution across key markets such as Tokyo, Paris, Los Angeles, and Australia. When this happens, it believes the share price could respond very positively. The Goodman share price is trading at $32.65 on Wednesday.

Liontown Ltd (ASX: LTR)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this lithium miner’s shares with an improved price target of $2.90. Bell Potter believes the outlook for lithium prices is positive after comparing medium term lithium supply restarts and greenfield projects against expected demand. In light of this, it has lifted its lithium price forecasts and its earnings estimates for Liontown in FY 2027 and FY 2028. Outside this, with current lithium price strength, Bell Potter notes that the company can rapidly generate cash to support incremental production expansions and shareholder returns. It also thinks that Kathleen Valley is highly strategic in terms of scale, long project life, and location in a tier-one mining jurisdiction. The Liontown share price is fetching $2.12 at the time of writing.

Lovisa Holdings Ltd (ASX: LOV)

Analysts at UBS have retained their buy rating and $26.00 price target on this fashion jewellery retailer’s shares. According to the note, the broker highlights that a good portion of Lovisa’s growth over the past decade has been driven by new store openings. The good news is that it expects this to continue with the company opening almost 50 stores since the end of the first half. This has been driven largely by new stores in Europe and America. The Lovisa share price is trading at $22.68 this afternoon.

The post Top brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

More reading

• How these 3 ASX 200 mining stocks have more than tripled investors’ money in a year
• 2 of the best ASX 200 blue-chip shares I’d buy in June
• Is Goodman Group a buy for dividend income today?
• How to make $2,000 of monthly passive income from ASX shares
• Want to retire earlier? This mix of ASX shares and ETFs could help

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Goodman Group and Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Lovisa. The Motley Fool Australia has recommended Goodman Group and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is up 0.4% in afternoon trade on Wednesday, with three big-name ASX 200 shares jumping to new 52-week-plus highs.

Here’s what’s happening.

BHP Group Ltd (ASX: BHP)

BHP is cementing its position as the biggest stock on the ASX today.

Shares in the Aussie mining giant are up 0.4% at the time of writing, changing hands for $65.48 apiece.

That’s not only a new 52-week high for BHP but, if the ASX 200 share holds these gains to close, it will mark a new all-time closing high.

BHP shares look to be benefiting from an overnight uptick in global copper prices. The red metal is currently fetching US$13,774 per tonne.

Amid the resilient iron ore price and surging copper prices, BHP shares have been on fire over the past 12 months, up 75.6%. And that doesn’t include the two fully-franked dividends totalling $1.96 a share the miner paid eligible stockholders over this time.

BHP shares trade on a 3% fully-franked trailing dividend yield.

Macquarie Group Ltd (ASX: MQG)

Macquarie shares are also setting a new high-water mark today.

Shares in the diversified financial stock are up 0.9% at the time of writing, trading for $251.28 each.

If these gains are held to close, that will also mark a new all-time high for this ASX 200 share.

The Macquarie share price is now up 18.5% since this time last year. Atop those capital gains, Macquarie shares also trade on a 2.8% partly franked trailing dividend yield.

Which brings us to…

Sims Ltd (ASX: SGM)

Joining Macquarie and BHP shares in the new 52-week-plus high club is metal and electronics recycler Sims.

Sims shares are up 1.5% in afternoon trade today, swapping hands for $29.87 each.

You’d have to go back to September 2008 to find this ASX 200 share trading at higher levels than that.

The Sims share price has surged 91.4% over the past 12 months. Sims also trades on a 0.9% fully-franked trailing dividend yield.

The stock caught fresh tailwinds today following a positive trading update.

Among the highlights stoking ASX investor interest, Sims lifted its FY 2026 underlying earnings before interest and tax (EBIT) guidance to the range of $420 million to $435 million.

That was up from prior earnings guidance in the range of $350 million to $400 million.

Management credited the improved full-year earnings outlook to strong operating performances across both Sims’ North America Metals and SA Recycling businesses.

The post 3 ASX 200 shares, including Macquarie and BHP, smashing new 52-week-plus highs today appeared first on The Motley Fool Australia.

More reading

• Buying Macquarie shares? Here’s the dividend yield you’ll get today
• Macquarie shares climb to fresh all-time high: Buy, sell or hold?
• BHP shares are at a record high, should I buy or sell?
• Up 134% since October, why is this $6 billion ASX 200 stock leaping higher again today?
• Sims lifts outlook as North American metals drive gains

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended BHP Group and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Nickel Industries Ltd (ASX: NIC) shares are gaining ground on Wednesday following a new update from the company.

At the time of writing, the Nickel Industries share price is up 3.06% to $1.01. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.43% higher to 8,956 points.

The ASX 200 mining stock has now climbed around 22% since the start of 2026 and is trading 44% higher than this time last year.

Nickel Industries owns mining and nickel processing operations in Indonesia, producing material used in stainless steel and electric vehicle batteries.

The company has a market capitalisation of around $4.4 billion, making it one of the largest nickel producers on the ASX.

Here’s what has caught the market’s attention.

May earnings bounce back

According to the release, Nickel Industries generated around US$80 million of adjusted EBITDA across April and May.

The result was split between US$29 million in April and US$51 million in May.

April was affected by 8 days of downtime at the Hengjaya Mine. The company also faced subcontractor standby charges and planned maintenance across its rotary kiln electric furnace operations.

The maintenance work forced Nickel Industries to use more expensive third-party electricity while repairs were completed on its power plants.

Conditions improved in May as activity returned to normal, helping adjusted EBITDA recover by around 76% from the previous month.

More cash set to arrive

Nickel Industries is anticipating a sizeable cash boost over the coming weeks.

Management expects to receive around US$70 million in distributions by early July after working capital was released from its RKEF operations.

It is also due to receive a US$15 million refund from Shanghai Decent, linked to the ONI matte converter.

Nickel Industries paid for the converter in 2023 but eventually decided not to go ahead with the investment.

That means around US$85 million could be coming back into the company over the next few weeks.

First production edges closer

Nickel Industries also provided an update on its Excelsior Nickel Cobalt high-pressure acid leach project in Indonesia.

The first ore has now arrived at one part of the site, while another section is expected to receive ore by mid-July.

The company expects the first production line to start running sometime between mid-July and late August. The other lines should then begin operating one by one.

Once the project is running, it will produce nickel products used in electric vehicle batteries.

The post This ASX 200 mining stock is up 44% in a year. Why is it climbing again? appeared first on The Motley Fool Australia.

More reading

• Why AIC Mines, EOS, Flight Centre, and Nickel Industries shares are racing higher today
• Nickel Industries posts US$80m EBITDA and HPAL progress in operating update
• 5 ASX 200 shares downgraded by the experts this week
• These ASX dividend stocks offer yields of up to 12%
• This ASX 200 nickel stock is rising after a huge project upgrade

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is pushing higher again on Wednesday as the market continues its recent recovery.

At the time of writing, the benchmark index is up 0.51% to 8,963 points after reaching an intraday high of 8,976.8 points.

That has taken the ASX 200 above Tuesday’s peak and to its highest level in around 2 months.

At the latest check, 138 companies are trading higher, compared with 55 fallers and 7 unchanged stocks.

So, what is driving the market today?

Oil price slide supports sentiment

The latest rise follows another large fall in global oil prices as traders respond to the proposed peace agreement between the United States and Iran.

Brent crude dropped 5.1% overnight to US$78.96 a barrel, its lowest closing level in 3 months.

The decline came after reports that Iran would be allowed to resume oil exports immediately under the agreement.

Lower oil prices are very positive for transport companies and other businesses facing high fuel costs. Travel shares have been among the stronger performers after Australia also eased its travel advice for parts of the Middle East.

However, the move is hurting energy producers. Woodside Energy Group Ltd (ASX: WDS) shares are down 3.05% to $29.13, while the S&P/ASX 200 Energy Index (ASX: XEJ) is drifting 2.18% lower.

Banks and miners lead the gains

The major banks and large miners are doing much of the heavy lifting today.

Commonwealth Bank of Australia (ASX: CBA) shares are up 1.08% to $163.62, while Westpac Banking Corp(ASX: WBC) shares have gained 0.27% to $35.85.

National Australia Bank Ltd (ASX: NAB) shares are 0.17% higher at $37.96, and ANZ Group Holdings Ltd (ASX: ANZ) shares are up 0.62% to $35.03.

BHP Group Ltd (ASX: BHP) shares have climbed 0.87% to $65.76, while Rio Tinto Ltd (ASX: RIO) shares are 0.26% higher at $189.21.

Northern Star Resources Ltd (ASX: NST) is also up 2.68% to $21.87.

Can the rally continue?

The ASX 200 has now gained more than 4% over the past week and is once again closing in on the psychological 9,000 mark.

However, there are still a few reasons for investors to remain cautious, such as the possibility of another RBA rate increase.

UBS has a year-end target of 8,800 points, which is already 1.8% below today’s index level.

That means the recent rally has moved beyond the broker’s forecast.

The post Why is the ASX 200 hitting a fresh 2 month high today? appeared first on The Motley Fool Australia.

More reading

• Diamond Infraco’s $5.10 offer for Atlas Arteria now unconditional
• Nickel Industries posts US$80m EBITDA and HPAL progress in operating update
• Growthpoint Properties Australia delivers leasing momentum, maintains FY26 guidance
• Sims lifts outlook as North American metals drive gains
• Flight Centre updates profit guidance; unveils $200m buy-back

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There was lots of coverage about the liquidation of Barbecues Galore in the media last week (I should know, I was asked about it, a lot!).

Without being on the inside, it feels like a pretty run-of-the-mill business failure – a single category retailer which, facing increased competition, higher costs and reduced discretionary spending, can’t keep the lights on.

I don’t mean that flippantly, or without care, of course. But it’s not unusual.

Far, far bigger, in my view, is this week’s decision by Lincraft.

The homewares and fabric retailer isn’t going broke. But it is shutting down every single physical store.

And becoming a pure-play online retailer.

That is… huge.

It is the first mainstream example in Australia of a retailer whose centre of gravity has tipped so considerably towards ecommerce, that it’s not just closing a few stores, but doing away with physical retail altogether.

Yes, that’s partly because physical retail has got tougher with rising costs and less discretionary spending.

But it’s partly because Australians are voting with our wallets: sure, we’re not making our own homewares and clothing as much, but that’s only a small contributor. The big one? We’re increasingly shopping online, and that’s shaking up traditional retailing.

As I wrote recently:

“Real estate? I wouldn’t want to invest in mid-tier retail real estate for quids. The big ‘destination’ centres will probably be okay. The local shopping centres will be fine for now, but bear watching if/when some individual stores become unprofitable as more shopping goes online. But the mid-tier stuff, that is neither a destination, nor local? That feels really risky to me.”

Essentially, while many customers will still want to walk into a physical store to look at, touch and try before they buy, that number is steadily decreasing.

But what’s not decreasing is the fixed costs of running a retail store; things like rent, electricity, a basic level of staffing, inventory, fittings and more.

Here’s where it hits, hard. And why the change will come sooner than many think.

When your revenues fall below a certain level – and that decline will be less than 10% for many individual stores – you can’t cover those fixed costs any more.

And so, even while your sales remain decently high, you go from making a reasonable profit to losing money.

If that’s temporary, you can probably carry some losses for a while.

But if it’s a permanent structural shift?

I don’t want to speak for (or potentially misrepresent) the good people at Lincraft, but I suspect that’s what they’re facing, at least in part.

And what other retailers will increasingly face.

In the article I wrote, featuring the quote above, I mentioned that at David Jones, “sales fell 8%, [but] the company’s online sales were up 10%.“

How long do you reckon DJs can absorb those store level declines before the stores themselves are loss-making?

Indeed, I have no inside information, but I’d bet a small amount of money that there are some medium and large retail chains nursing store-level losses at a decent minority of their stores already.

They should close those stores, but a combination of long-term rental agreements, and the need to look like they’re growing, probably means they’re happy to paper over the cracks.

And here’s the thing: even if that assumption is wrong, it’s the direction many, many retailers are heading, whether they admit it or not.

For how much longer will we need more than 1,100 Woolworths Group Ltd (ASX: WOW) supermarkets? Around 200 Harvey Norman Holdings Ltd (ASX: HVN) stores, and the same number of JB Hi-Fi Ltd (ASX: JBH) outlets? Will we need 300 K-Marts around the country?

David Jones and Myer Holdings Ltd (ASX: MYR) surely can’t sustain even the 100-odd stores they have between them for more than another few years. (My bet? We’ll have fewer than 30 by the time they’re finished closing stores. Maybe half of that number.)

And if/when those groups are forced to close loss-making stores? They’ll be hoping their brands and online offerings are strong enough to convince current customers to shop online, instead.

Some of them will be right. But all of them?

Lincraft has had the foresight and courage to do the right thing, however much they’d prefer to have done otherwise. Other retailers closed down, altogether, because their online sales weren’t high enough to justify such a move.

Those are the two paths for other retailers to choose to walk… or the market will decide for them. Or, if they take too long, the administrators or liquidators.

If I was on the board of a retail company, I’d want to know what plans management had to turbo-charge online sales growth, and to minimise the length of retail tenancy agreements, to give the company maximum flexibility as consumer shopping habits continue to change.

Yes, some physical retailers will survive, or even thrive, if they can offer something truly unique that sufficient numbers of people want, and are prepared to pay for.

But remember those store economics: even if 75% or 80% of their customers want to shop in-store, that’s nowhere near enough to support the current cost base of many retailers. Perhaps 90% in most cases.

Which means the tipping point is much closer than many expect. And could well be exacerbated (and accelerated) if discretionary retail sales remain subdued.

Okay, that all sounds pretty pessimistic. And it is, if you’re a retailer with little online presence and momentum.

But it also presents opportunities, both for retailers and their shareholders.

When buggies were challenged by cars, the best buggy-makers added engines (no, not literally, but Studebaker was once the world’s largest maker of horse-drawn carriages).

Canadian ice hockey great Wayne Gretzky famously said “I skate to where the puck is going to be, not where it has been.”

The impulse to circle the wagons is understandable, and actually makes sense when it comes to temporary or passing threats.

But when faced with a structural change, swimming with the tide beats swimming against it.

The company that isn’t actively embracing online retail, and prepared to jettison unprofitable store locations, is, to change metaphors, sailing into a very stiff headwind.

The one that reads the permanent change in conditions and sets the spinnaker, instead, will win the race.

That goes for investors, too.

Fool on!

The post We’ve just seen the future of retail. Many aren’t ready appeared first on The Motley Fool Australia.

More reading

• Why is the ASX 200 hitting a fresh 2 month high today?
• Diamond Infraco’s $5.10 offer for Atlas Arteria now unconditional
• Guess which ASX stock is rocketing 10% today?
• How these 3 ASX 200 mining stocks have more than tripled investors’ money in a year
• Why AIC Mines, EOS, Flight Centre, and Nickel Industries shares are racing higher today

Motley Fool contributor Scott Phillips has positions in Harvey Norman. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Myer. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Atlas Arteria Group (ASX: ALX) share price is firmly in focus as Diamond Infraco 1 Pty Ltd has declared its A$5.10 per security takeover offer for Atlas Arteria is now unconditional and best and final, following formal notification on 17 June 2026.

What did Atlas Arteria report?

• Diamond Infraco 1 Pty Ltd’s offer price of A$5.10 per security is best and final, and will not be increased (in the absence of a competing proposal).
• The offer is now unconditional, removing all previous conditions to acceptance.
• Bidder’s current voting power in Atlas Arteria stands at 38.42% as of 17 June 2026.
• Securityholders can accept the offer or sell on-market at A$5.10 per security, with settlement in T+2.
• The offer closes 7.00pm (Sydney time) on 25 June 2026 and will not be extended except if required by law.

What else do investors need to know?

The bidder has made a binding ‘truth-in-takeovers’ statement that it will not acquire Atlas Arteria securities at more than A$5.10 per security for at least 12 months after the offer closes, unless a competing proposal arises. Any distributions paid during this period would reduce the maximum price in subsequent acquisitions by Diamond Infraco 1 Pty Ltd.

Investors are being urged to act now, as there is no certainty Diamond Infraco 1 Pty Ltd will acquire further securities after the close, and any future acquisitions could be at lower prices. The offer window provides a liquidity option at a material premium to undisturbed prices (A$4.33 per security).

What’s next for Atlas Arteria?

Looking ahead, securityholders face a decision between accepting the current cash offer or retaining exposure to the company’s assets and strategies, including any future sale of Chicago Skyway. The bidder notes there is significant uncertainty over asset sales and the potential for security price weakness after the close of the offer, alongside ongoing company-specific risks.

The limited offer period closes soon on 25 June 2026. After this, the liquidity window at A$5.10 will close, and the path forward for Atlas Arteria will depend on the outcome of the bid and subsequent strategic moves.

Atlas Arteria share price snapshot

Over the past 12 months, Atlas Arteria shares have declined 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Diamond Infraco’s $5.10 offer for Atlas Arteria now unconditional appeared first on The Motley Fool Australia.

More reading

• Nickel Industries posts US$80m EBITDA and HPAL progress in operating update
• Growthpoint Properties Australia delivers leasing momentum, maintains FY26 guidance
• Sims lifts outlook as North American metals drive gains
• Flight Centre updates profit guidance; unveils $200m buy-back
• Meet the $1 ASX stock that’s obliterated Nvidia in the last 12 months

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.