G41 Food Retailing

Sales growth slows as grocery prices cut

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Original article by Sue Mitchell
The Australian Financial Review – Page: 27 : 5-Aug-15

New data shows that there was 2.9 per cent growth in Australian supermarket and grocery store sales in June 2015. This is the lowest rate of growth since September 2013, which is primarily due to price discounting in the sector. Meanwhile, growth in total food and liquor sales slowed to 2.7 per cent in June. Woolworths is seeking to counter stronger sales growth at Coles by reducing grocery prices, while Metcash has launched a price-matching initiative for independent grocery retailers that operate under its IGA banner.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, ALDI STORES SUPERMARKETS PTY LTD, DEUTSCHE BANK AG, MORGAN STANLEY AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, AUSTRALIAN BUREAU OF STATISTICS

Sales growth slows as grocery prices cut

roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 27 : 5-Aug-15

New data shows that there was 2.9 per cent growth in Australian supermarket and grocery store sales in June 2015. This is the lowest rate of growth since September 2013, which is primarily due to price discounting in the sector. Meanwhile, growth in total food and liquor sales slowed to 2.7 per cent in June. Woolworths is seeking to counter stronger sales growth at Coles by reducing grocery prices, while Metcash has launched a price-matching initiative for independent grocery retailers that operate under its IGA banner.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, ALDI STORES SUPERMARKETS PTY LTD, DEUTSCHE BANK AG, MORGAN STANLEY AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, AUSTRALIAN BUREAU OF STATISTICS

Metcash in alleged stall on SupaBarn deal

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 31-Jul-15

The Australian Competition & Consumer Commission will decide in September 2015 whether to approve Coles Group’s deal to buy SupaBarn. The deal would give Coles an additional nine supermarkets in the Australian Capital Territory and Sydney, although it has existing stores in close proximity to each SupaBarn outlet. Metcash has raised concerns with the ACCC about the proposed deal’s effect on competition, but the grocery wholesaler rejects suggestions that it has organised a supplier campaign against the deal.

CORPORATES
COLES GROUP LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, SUPABARN SUPERMARKETS PTY LTD, METCASH LIMITED – ASX MTS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, INDEPENDENT GROCERS OF AUSTRALIA, MASTER GROCERS’ AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW

Wine buyers splash out

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Original article by Simon Evans
The Australian Financial Review – Page: 15 : 17-Jul-15

Liquor retailers have reported a strong rise in sales of Treasury Wine Estates’ more upmarket wine brands in response to a limited offer in which they can buy a $A3,000 wine cabinet for just $A1,199. Consumers who spend at least $A500 on wine brands such as Penfolds, Wolf Blass and Wynns Coonawarra can buy the wine cabinet at the heavily discounted price in July and August 2015. A smaller wine cabinet is also available at a deep discount to people who spend at least $A180 on wine.

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, PENFOLDS WINES PTY LTD, WOLF BLASS WINES PTY LTD, WYNNS COONAWARRA ESTATE PTY LTD, DAN MURPHY’S, WOOLWORTHS LIMITED – ASX WOW, BOCCACCIO CELLARS PTY LTD, WINE AUSTRALIA PTY LTD

Coles, Woolies cut private label prices to ward off Aldi incursion

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 15-Jul-15

Data from Deutsche Bank shows that there was a 1.3 per cent increase in the prices of brand-name groceries in the June 2015 quarter. However, the prices of private-label products fell by 6.1 per cent, as Coles and Woolworths sought to defend their market share against Aldi. Deutsche’s supermarket inflation survey also shows that the price of a basket of brand-name groceries at Coles increased by 5.1 per cent during the quarter, compared with a 2.6 decline at Woolworths.

CORPORATES
DEUTSCHE BANK AG, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, MACQUARIE EQUITIES LIMITED, METCASH LIMITED – ASX MTS, SUPA IGA

Aldi in great shape for Coles, Woolies battle

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Original article by Sue Mitchell
The Australian Financial Review – Page: 11 & 14 : 14-Jul-15

Woolworths continues to have the highest pre-tax profit margin among Australian grocery retailers, at 7.1 per cent. However, Aldi boasted a profit margin of 5.2 per cent in 2013, according to its submission to a Senate tax inquiry. This compares with a profit margin of just 4.3 per cent for Coles. Craig Woolford of Citigroup believes that Aldi will gain more market share at the expense of its two main rivals, while Craig Young of Nikko Asset Management doubts that Aldi will pursue a grocery price war.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, CITIGROUP PTY LTD, NIKKO ASSET MANAGEMENT GROUP, DEUTSCHE BANK AG, WESFARMERS LIMITED – ASX WES, AUSTRALIAN LABOR PARTY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Light at end of the tunnel for Ritchies Stores

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Original article by Sue Mitchell
The Australian Financial Review – Page: 21 & 26 : 9-Jul-15

Ritchies Stores’ earnings have fallen by 73 per cent since 2011, but chairman Fred Harrison says the grocery chain returned to profit growth in the 2014-15 financial year. Ritchies is supplied by grocery wholesaler Metcash, and Harrison notes that Metcash’s store refurbishment and price-matching strategy for the IGA network has helped to boost his company’s sales. Harrison adds that price competitiveness has become essential for independent grocery retailers.

CORPORATES
RITCHIES STORES PTY LTD, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MACQUARIE SECURITIES PTY LTD

Coles gains on Woolworths at the deli counter

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 7-Jul-15

A Roy Morgan Single Source survey shows that 6.7 million Australian grocery buyers aged 14+ collectively spent around $A91m on delicatessen items in an average seven days in the year to March 2015. This compares with 6.4 million weekly shoppers (and $A73m spent) in the year to March 2011. The survey also shows that 43 per cent of deli shoppers buy at least some of their week’s supply of deli goods from Woolworths, down marginally from 44.1 per cent in 2011. Coles’ share of deli shoppers has risen from 31.5 per cent to 36.7 per cent over the same period.

CORPORATES
ROY MORGAN RESEARCH LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, IGA

Woolworths serves up Thomas Dux

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 19 : 30-Jun-15

Australian-listed Woolworths has declined to comment on reports that it is seeking a buyer for its chain of Thomas Dux stores. However, it is believed to be aiming for a sale price of $A10m-$A20m for the grocery chain, which specialises on gourmet foods and comprises 10 outlets. Woolworths Holdings is seen as a possible buyer for the chain, although the South Africa-based group has denied that it has made overtures regarding Thomas Dux.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, THOMAS DUX GROCER, WOOLWORTHS HOLDINGS LIMITED, DAVID JONES LIMITED, ABOUT LIFE PTY LTD, JONES THE GROCER, L CAPITAL ASIA, LVMH MOET HENNESSY LOUIS VUITTON SA, BRIGHT FOOD GROUP COMPANY LIMITED, MANASSEN FOODS AUSTRALIA PTY LTD, SIMON JOHNSON PURVEYOR OF QUALITY FOODS PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES

Murray in the business of making a difference

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Original article by Carrie LaFrenz
The Australian Financial Review – Page: 13 & 18 : 29-Jun-15

Former Lion Nathan CEO Rob Murray has a track record of turning around struggling companies. He did so at Lion, as well as Spillers Petfoods and Nestle Foods in the UK. Murray is now on the boards of three Australian-listed companies whose outlooks are uncertain. He is a non-executive director of Southern Cross Media Group and chairs both Metcash and Dick Smith Holdings. Murray says Metcash’s price-matching strategy must focus on key grocery products, and has ruled out the sale of its Mitre 10 hardware business.

CORPORATES
METCASH LIMITED – ASX MTS, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, DICK SMITH HOLDINGS LIMITED – ASX DSH, LION PTY LTD, SPILLERS PETFOODS, NESTLE SA, IGA, MITRE 10 LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, LIDL GMBH & CO KG, BUNNINGS GROUP LIMITED, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SUPER RETAIL GROUP LIMITED – ASX SUL, LINFOX PTY LTD, BESTEST, CAMBRIDGE UNIVERSITY