DEPARTMENT STORES – AUSTRALIA

Myer’s executive clearance carries a $2.5m price tag

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Original article by Eli Greenblat
The Australian – Page: 21 : 26-Oct-18

Myer CEO John King has told shareholders in its latest annual report that he will spend at least two days a week in its stores. King joined the department store chain in June, since which time he has cut at least 30 staff from its management ranks. Myer’s annual report reveals that its recent culling of senior executives, which included former CEO Richard Umbers and CFO Grant Davenport, has cost it over $2.65 million in termination and other payments.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, PREMIER INVESTMENTS LIMITED – ASX PMV

Lew urges Wilson to help fix Myer board

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Original article by Sue Mitchell
The Australian Financial Review – Page: 20 : 17-Sep-18

Geoff Wilson’s Wilson Asset Management has become a substantial shareholder in retailer Myer, with a 5.5 per cent stake. Solomon Lew, whose Premier Investments holds a 10.8 per cent stake in Myer and who has been unhappy with its performance since Premier acquired its stake in March 2017, has called on Wilson to help him toss out the Myer board. However, Wilson has indicated that he is happy to support new Myer CEO John King and his senior managers, while he has queried the rationale behind Lew’s attacks on the Myer board.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, WILSON ASSET MANAGEMENT, PREMIER INVESTMENTS LIMITED – ASX PMV

Department stores aren’t dying, says DJ’s owner

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Original article by Sue Mitchell
The Australian Financial Review – Page: 23 : 24-Aug-18

David Jones’s operating profit fell by 49.6 per cent to $64 million in the year to June 2018, as advised by parent company Woolworths Holdings. This compared to an operating profit of $127 million for the previous corresponding period. Department store earnings were down 58 per cent to $5 million. Sales for the second half of the reporting period increased by 2.2 per cent, while sales for the first seven weeks of 2018-19 have risen by 3.7 per cent.

CORPORATES
DAVID JONES LIMITED, WOOLWORTHS HOLDINGS LIMITED, COUNTRY ROAD LIMITED, ZARA, HENNES OCH MAURITZ AB, LOUIS VUITTON, CHANEL INCORPORATED, WALT DISNEY COMPANY

Myer to shed head office jobs but keep stores

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Original article by Sue Mitchell
The Australian Financial Review – Page: 25 : 20-Jul-18

Department store group Myer has reduced staff numbers at its head office in Melbourne’s Docklands precinct by about 30 per cent in recent years, and CEO John King is expected to seek further job cuts. However, sources have rejected suggestions that up to 50 per cent of head office staff could be retrenched. King also intends to reduce the number of Myer stores, although he is expected to wait until existing leases expire. Meanwhile, David Jones has posted 2.2 per cent growth in sales for the first half of 2018, and growth of 2.7 per cent in same-store sales. Full-year sales were 0.9 per cent lower than previously.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, WOOLWORTHS HOLDINGS LIMITED, HOUSE OF FRASER HOLDINGS PLC, SEARS HOLDINGS, KMART CORPORATION, LATITUDE FINANCIAL SERVICES LIMITED, PREMIER INVESTMENTS LIMITED – ASX PMV, VICTORIA RACING CLUB LIMITED

Satisfaction up for discount department stores

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Original article by Roy Morgan
Market Research Update – Page: Online : 9-Jul-18

A Roy Morgan Single Source survey shows that 87.3% of customers of Australian discount department stores were satisfied in the year to May 2018, an increase of 0.6% over the previous 12 months. Kmart and Target had the highest customer satisfaction rating (both on 88.2%). Kmart improved by 0.7% over the last 12 months and Target was up by 0.6%. They were followed by Costco (87.0%), Big W (86.6%), Best & Less (86.0%), Target Country (84.8%) and Harris Scarfe (83.3%). The only stores to decline in satisfaction over the last 12 months were Harris Scarfe (down 5.2% points) and Costco (down 2.1% points). Roy Morgan’s "Discount Department Store Satisfaction Report" is based on in-depth interviews conducted face-to-face with over 50,000 Australians per annum in their own homes.

CORPORATES
ROY MORGAN LIMITED, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, COSTCO WHOLESALE AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, BEST AND LESS PTY LTD, TARGET COUNTRY, HARRIS SCARFE HOLDINGS LIMITED

Myer brings forward winter sales

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Original article by Eli Greenblat
The Australian – Page: 17 & 28 : 29-May-18

Department store chain Myer is tipped to offer discounts of up to 70 per cent in its mid-season stocktake sale, which will begin on 29 May. French Connection, Bonds and Country Road are among the brands that will be heavily discounted in the stocktake sale, which has been launched earlier than usual due to an unseasonally warm start to the winter months. Grant Saligari of Credit Suisse notes that other retailers tend to begin discounting when one does so. David Jones is also tipped to launch its mid-season sale ahead of schedule.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, FRENCH CONNECTION, BONDS INDUSTRIES LIMITED, COUNTRY ROAD LIMITED, PIPER, WAYNE COOPER, MARCS, SPORTSCRAFT, CREDIT SUISSE (AUSTRALIA) LIMITED, DAVID JONES LIMITED, CITIGROUP PTY LTD

Myer rules out using VA to exit leases

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 27-Mar-18

Struggling retailer Myer is saddled with $A2.7 billion worth of leases, and it has been suggested that it could enter into voluntary administration in order to get out of its lease commitments. Such a strategy was adopted by retailers OrotonGroup and SumoSalad. However, a spokesperson for Myer says it has no plans to enter into voluntary administration, noting that it continues to be solvent. Joe Hayes of Wexted Advisors says that entering into voluntary administration could create more problems for Myer than it might solve.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, OROTONGROUP LIMITED – ASX ORL, SUMO SALAD, WEXTED ADVISORS, McGRATH NICOL AND PARTNERS SERVICES PTY LTD

David Jones not looking at riding to Myer’s rescue

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Original article by Eli Greenblat
The Australian – Page: 19 : 23-Feb-18

Department store chain Myer canvassed rival David Jones about what would have been a $A3 billion merger in late 2013, but the potential deal never got off the ground. Myer shares fell a record low of less than $A0.50 on 22 February, amid growing fears about its financial health. Ian Moir, the CEO of David Jones’ parent Woolworths Holdings, said he has no interest in making a bid for Myer. David Jones’ operating profit fell by 29.4 per cent in the December half, and Moir said his focus is on improving its performance.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, WOOLWORTHS HOLDINGS LIMITED

Wesfarmers in push for tax cuts

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Original article by Eli Greenblat
The Australian – Page: 17 & 27 : 22-Feb-18

Wesfarmers has posted a 2017-18 interim net profit of $A212m, which is 86.6 per cent lower than previously. Group revenue rose 2.8 per cent to $A35.9bn, while Bunnings’ revenue in Australia and New Zealand was 10.2 per cent higher at $A6.566bn. Supermarket chain Coles posted revenue of $A19.978bn, which is in line with the previous corresponding period. Wesfarmers CEO Rob Scott has called for corporate tax cuts to ensure that Australian companies are globally competitive, adding that a lower tax rate will ultimately boost wages.

CORPORATES
WESFARMERS LIMITED – ASX WES, BUNNINGS GROUP LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, TARGET AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, OFFICEWORKS SUPERSTORES PTY LTD, COCA-COLA AMATIL LIMITED – ASX CCL, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Abboud on list as Myer chases chief

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Original article by Bridget Carter
The Australian – Page: 17 & 20 : 21-Feb-18

Department store group Myer Holdings has engaged the services of executive search firm Spencer Stuart to find a successor to dumped CEO Richard Umbers. Spencer Stuart is said to be in the early stages of identifying potential candidates, but former David Jones CEO Paul Zahra is believed to be the leading contender for the role. Other potential candidates are said to include ex-Dick Smith Holdings CEO Nick Abboud and PAS Group CEO Eric Morris. Abboud and Morris have both previously held executive roles at Myer.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, SPENCER STUART AND ASSOCIATES, DAVID JONES LIMITED, DICK SMITH HOLDINGS LIMITED, THE PAS GROUP LIMITED – ASX PGR, ANCHORAGE CAPITAL PARTNERS PTY LTD, WOOLWORTHS GROUP LIMITED – ASX WOW, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, PREMIER INVESTMENTS LIMITED – ASX PMV, BRISCOES, CENTRAL DEPARTMENT STORE GROUP, HOLT RENFREW AND COMPANY LIMITED, FOSCHINI GROUP