G41 Food Retailing

Woolworths now cheaper than Coles for trolley of groceries: analyst

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Original article by Patrick Hatch
The Australian Financial Review – Page: 15 : 6-Oct-15

An analysis of grocery prices in Australian supermarkets shows that Costco has the lowest prices for 36 items. Morgan Stanley analyst Tom Kierath also found that the same items were 29 per cent more expensive at Woolworths. However, Coles’ prices were higher than those of Woolworths on 20 items, while its prices were lower on 13 products and the same on three products.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, COSTCO WHOLESALE AUSTRALIA PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED

Chairman, CEO quit 7-Eleven board

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Original article by Adele Ferguson, Sarah Danckert
The Australian Financial Review – Page: 4 : 1-Oct-15

Former Australian Institute of Company directors chairman Michael Smith will succeed Russ Withers as chairman of convenience store group 7-Eleven. Withers and CEO Warren Wilmot resigned on 30 September 2015. Smith believes that the problem of wage fraud is more far-reaching than just at 7-Eleven, and he favours an amnesty for international students who have been caught up in the scandal. He also suggests that visa rules could be changed to allow them to work for more than 20 hours a week.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION

Metcash plays down threat of Aldi expansion into WA, SA

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Original article by Simon Evans
The Australian Financial Review – Page: 17 : 30-Sep-15

Aldi will enter the South Australian and Western Australian markets in 2016, with plans for 120 stores in coming years. IGA stores in the two states typically boast higher profit margins than those on the east coast, and Metcash CEO Ian Morrice believes that IGA stores in SA and WA are in a stronger position to compete with Aldi than IGA stores in Victoria and New South Wales. Morrice has also downplayed the prospect of a price war between Coles and Woolworths.

CORPORATES
METCASH LIMITED – ASX MTS, IGA, ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, FOODLAND AUSTRALIA LIMITED, CELLARBRATION PTY LTD, THE BOTTLE-O, IGA LIQUOR, MITRE 10 LIMITED, TRUE VALUE HARDWARE LIMITED, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD

Woolworths to spend $65m on fresh look

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 20 : 21-Sep-15

Australian-listed Woolworths will respond to customer complaints by spending $A65m on upgrading its supermarkets, including new shopping trolleys, in-store signage and shelving. The head of the group’s supermarkets division, Dave Chambers, says shopper have frequently complained about poor customer service and stock not being available. Woolworths is also undertaking daily customer surveys and using data analytics to improve its stores.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, IGA, ALDI STORES SUPERMARKETS PTY LTD, COSTCO WHOLESALE AUSTRALIA PTY LTD, THE QUANTIUM GROUP PTY LTD, PROGRESSIVE ENTERPRISES HOLDINGS LIMITED, FOODTOWN SUPERMARKETS LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD

IGA prepares for Aldi attack

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Original article by Sue Mitchell
The Australian Financial Review – Page: 27 : 17-Sep-15

Aldi will expand into the Western Australian and South Australian markets in 2016, and it will pose a major threat to Metcash in particular. Nearly 30 per cent of stores that trade under Metcash’s IGA banner are located in these states. Morgan Stanley believes that Aldi’s entry could slash the sales of independent retailers operating under the IGA banner by about $A360m a year, while Metcash itself could face a sharp fall in sales. Its market share in the eastern states is already falling, although a survey by Roy Morgan Research shows that it boasts the highest level of customer loyalty.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, METCASH LIMITED – ASX MTS, IGA, COLES GROUP LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, ROY MORGAN RESEARCH LIMITED, SIMMO’S ICE CREAMERY

7-Eleven founder resigns from AOC

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Original article by Adele Ferguson, Sarah Danckert
The Australian Financial Review – Page: 11 : 10-Sep-15

The wages scandal at 7-Eleven Stores has prompted chairman and founder Russell Withers to step down from the Australian Olympic Committee (AOC) board. Withers had been on the AOC board since 2001. Meanwhile, 7-Eleven board member Michael Smith has stood down as the chairman of the Australian Institute of Company Directors while the convenience store chain undertakes an investigation into the affair.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIAN OLYMPIC COMMITTEE, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, INTERNATIONAL OLYMPIC COMMITTEE, AUSTRALIAN BROADCASTING CORPORATION, FAIRFAX MEDIA LIMITED – ASX FXJ

Trolley wars a boon for suppliers

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

Australian consumers are making more frequent trips to supermarkets rather than doing a major grocery buy each week. Supermarket operators have responded to the trend by deploying smaller shopping trolleys and reducing the cycle for upgrading their fleet of trolleys to every 3-4 years. This in turn has benefited companies that supply shopping trolleys, such as QHDC Australia. The company’s Chinese subsidiary manufactures trolleys for retailers in Australia, the US and several Asian countries.

CORPORATES
QHDC AUSTRALIA PTY LTD, SUZHOU QDHC METAL PRODUCTS, WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED

7-Eleven head office involved in wage fraud cover-up

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Original article by
The Australian Financial Review – Page: 40 : 31-Aug-15

Fair Work Commission is investigating allegations of wage fraud at franchise chain 7-Eleven. Most of the chain’s employees are students on visas. The underpayment of wages is not limited to 7-Eleven. There are 1.3 million workers in Australia on visas and they are vulnerable to wage abuses.

CORPORATES
7-ELEVEN INCORPORATED, AUSTRALIA. FAIR WORK COMMISSION

Pressure on Coles, Woolies at both ends

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 14-Aug-15

Aldi’s expansion will increase price competition and cut into the market share of supermarket giants Woolworths and Coles and Metcash’s IGA chain. The supermarkets are also likely to be squeezed at the top end of the market when David Jones revamps its food halls and opens stand-alone upmarket food stores. Moody’s says the twin-pronged attack by Aldi and David Jones will shake up the duopoly structure of Australia’s grocery market.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, DAVID JONES LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, WOOLWORTHS HOLDINGS LIMITED

Pressure on Coles, Woolies at both ends

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 14-Aug-15

Aldi’s expansion will increase price competition and cut into the market share of supermarket giants Woolworths and Coles and Metcash’s IGA chain. The supermarkets are also likely to be squeezed at the top end of the market when David Jones revamps its food halls and opens stand-alone upmarket food stores. Moody’s says the twin-pronged attack by Aldi and David Jones will shake up the duopoly structure of Australia’s grocery market.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, DAVID JONES LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, WOOLWORTHS HOLDINGS LIMITED