G41 Food Retailing

7–Eleven appoints fraud investigator

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Original article by Patrick Hatch
The Australian Financial Review – Page: 19 : 3-Feb-16

Australian convenience store chain 7-Eleven has hired an unnamed former police detective with expertise in fraud and economic crime in the wake of the wage exploitation scandal. The ex-police officer will investigate allegations of fraud and breaches of workplace laws at 7-Eleven stores. The Fair Work Ombudsman has also taken legal action against some franchisees, while the Fels Wage Fairness Panel has been established to compensate employees who have been underpaid.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION

Aldi aims to squeeze rivals in SA and WA

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Original article by Simon Evans
The Australian Financial Review – Page: 15 : 3-Feb-16

Aldi will open its first supermarkets in South Australia on 3 February 2016, with plans to open 16 by the end of the year. There is much stronger competition in South Australia’s grocery sector than in the eastern states, with only a few percentage points separating the market share of Coles, Woolworths and Foodland. Aldi’s state MD Viktor Jakupec says market research has found that South Australian shoppers are seeking the same value proposition as Aldi customers in the eastern states.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, FOODLAND AUSTRALIA LIMITED, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Foodland chief won’t play the loyalty card

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Original article by Simon Evans
The Australian Financial Review – Page: 18 : 27-Jan-16

South Australia-based supermarket group Foodland has 118 stores and intends to open another 20 over four years. It boasts about 32 per cent of the state’s grocery market, and will face new competition when Aldi’s first store in South Australia opens in early February 2016. Foodland CEO Con Sciacca expects Aldi to have a bigger impact on Coles and Woolworths, and he says Foodland has opted against introducing a loyalty program as a review found that they do nothing to increase customer loyalty.

CORPORATES
FOODLAND AUSTRALIA LIMITED, ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, IGA, METCASH LIMITED – ASX MTS, MORGAN STANLEY AUSTRALIA LIMITED

Woolworths struggles to hire CEO

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Original article by Michael Smith
The Australian Financial Review – Page: 1 : 22-Jan-16

An overseas candidate is likely to succeed Woolworths CEO Grant O’Brien, after no local executives expressed interest in the role. Woolworths is believed to have identified about five potential candidates from the UK, Europe and North America. Chairman Gordon Cairns had originally indicated that he aimed to install a new CEO by March 2016, but he has conceded that the selection process may take longer as overseas candidates are being interviewed in person rather than by video link.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD

Costco profit surges as sales exceed $1b

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 21-Dec-15

Costco Wholesale Australia has posted a pre-tax profit of $A22.7m for the year ended August 2015, following a loss of $A10.7m previously. The grocery retailer’s revenue rose from $A878.5m to $A1.323bn, while its gross margin increased from 14.3 per cent to 14.6 per cent. IBISWorld estimates that Costco now boasts about 1.2 per cent of Australia’s grocery market, six years after opening its first Australian store.

CORPORATES
COSTCO WHOLESALE AUSTRALIA PTY LTD, IBISWORLD PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, COSTCO WHOLESALE CORPORATION

Woolies, Coles and Aldi caught up in child labour scandal

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Original article by Sarah Danckert
The Australian Financial Review – Page: 5 : 15-Dec-15

Australian supermarket groups Coles, Woolworths and Aldi will review their supply chains after revealing that they source frozen prawns from a Thailand-based company that has been accused of using forced labour. It is also alleged that Thai Union uses child labour at a prawn peeling factory in the city of Samut Sakhon. Thai Union is one of the world’s largest seafood suppliers.

CORPORATES
COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, THAI UNION FROZEN PRODUCTS PUBLIC COMPANY LIMITED, INDEPENDENT GROCERS OF AUSTRALIA, METCASH LIMITED – ASX MTS, GREENPEACE INTERNATIONAL, ASSOCIATED PRESS, THAILAND. DEPT OF FISHERIES, INTERNATIONAL LABOUR ORGANIZATION

Woolies sued over payments

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Original article by Sue Mitchell, Sarah Danckert
The Australian Financial Review – Page: 3 : 11-Dec-15

The Australian Competition & Consumer Commission (ACCC) has commenced legal proceedings against Woolworths, accusing the retailer of unconscionable conduct. The ACCC alleges that Woolworths contravened Australian consumer law when it demanded more than $A60 million in extra payments from suppliers in late 2014. The matter will be heard in the Federal Court.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, FEDERAL COURT OF AUSTRALIA, COLES GROUP LIMITED

Coles MD says suppliers living on Treasure Island

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 17 : 9-Dec-15

Coles MD John Durkan has criticised global suppliers of brand-name groceries for charging excessive prices in Australia, a concern he first raised in 2008. He concedes that consumers must be expected to pay a reasonable price for groceries, but he says cost increases in Australia should not be higher than in other countries. Durkan adds that more consumers will switch to supermarkets’ private-label products if the cost of branded groceries keeps rising.

CORPORATES
COLES SUPERMARKETS AUSTRALIA PTY LTD, COLES GROUP LIMITED, ARNOTT’S BISCUITS LIMITED, COCA-COLA AMATIL LIMITED – ASX CCL, SCHWEPPES AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, WOOLWORTHS LIMITED – ASX WOW, AUSTRALIAN FOOD AND GROCERY COUNCIL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

The power of Tim Tams: Arnott’s puts bite on Coles in price war

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Original article by Eli Greenblat
The Australian – Page: 2 : 1-Dec-15

Coles will no longer stock certain Arnott’s products following a pricing dispute with the biscuit maker. Arnott’s had sought price rises ranging from 2.2 per cent to 9.9 per cent on more than 40 of its popular biscuit products, and the supermarket chain’s resistance prompted a ban on deliveries of Arnott’s products to its stores. Coles eventually backed down, although it has refused to accept price increases on some products and will cease selling them.

CORPORATES
COLES SUPERMARKETS AUSTRALIA PTY LTD, ARNOTT’S BISCUITS LIMITED, CAMPBELL SOUP COMPANY, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, FOSTER’S GROUP LIMITED

Aldi favours shock and awe over surprise in SA invasion

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Original article by Sue Mitchell
The Australian Financial Review – Page: 26 : 19-Nov-15

Germany-based Aldi aims to open 16 stores in South Australia during 2016, with the first store slated to open on 3 February. Tom Kierath of Morgan Stanley forecasts that Aldi will boast a market share of about five per cent within 12 months of entering the state’s grocery sector. More than 35 per cent of Australians now shop at an Aldi store in an average four-week period, according to a survey by Roy Morgan Research. Aldi will also expand into Western Australia in 2016.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, ROY MORGAN RESEARCH LIMITED, UBS HOLDINGS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, IGA, METCASH LIMITED – ASX MTS