DEPARTMENT STORES – AUSTRALIA

Costco & Kmart battle for 2017 customer satisfaction award

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Original article by Roy Morgan
Market Research Update – Page: Online : 19-Feb-18

Roy Morgan’s Single Source survey shows that Costco (88.9%) had the highest customer satisfaction rating among Australian discount department stores in November 2017, ahead of Kmart on 88.3%. Costco (with five monthly victories) and Kmart (four victories) are locked in a tight battle for the 2017 Roy Morgan Discount Department Store Customer Satisfaction Award. Target, the defending Discount Department Store of the year, has lost ground over the past year and been unable to build on an early monthly victory in March. Target’s customer satisfaction rating of 87.5% in November is down 0.4% points on a year ago. Also losing ground in the year to November 2017 are Steinhoff Asia-Pacific’s two discount department stores – Harris Scarfe on a customer satisfaction rating of 85.9%, down 1.6% points on a year ago, and Best & Less on 85.2%, down 2.2% points.

CORPORATES
ROY MORGAN LIMITED, COSTCO WHOLESALE AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, HARRIS SCARFE HOLDINGS LIMITED, BEST AND LESS PTY LTD, STEINHOFF ASIA-PACIFIC

Myer in disarray as CEO axed

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Original article by Eli Greenblat
The Australian – Page: 17 & 20 : 15-Feb-18

Listed department store group Myer Holdings has sacked CEO Richard Umbers after issuing its third profit downgrade in less than 12 months. However, executive chairman Garry Hounsell says the group will persist with the "new Myer" turnaround strategy that Umbers launched in 2015, despite the fact that its targets have not been met. Major shareholder Premier Investments has renewed its criticism of Myer in the wake of Umbers’ departure, and argues that the entire board needs to be replaced.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, PREMIER INVESTMENTS LIMITED – ASX PMV, TPG CAPITAL LP

Wesfarmers hit as Bunnings UK bleeds

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Original article by Eli Greenblat
The Australian – Page: 17 & 20 : 6-Feb-18

Perth-based conglomerate Wesfarmers has announced some $A1.3bn worth of writedowns associated with the Target discount department store chain and the fledgling Bunnings operations in the UK. Wesfarmers CEO Rob Scott is optimistic that Bunnings UK can become profitable, but a sweeping review of the business will be undertaken which could potentially result in its sale or closure. Scott has vowed that Wesfarmers will act quickly and decisively on the outcome of the review of its Bunnings UK business.

CORPORATES
WESFARMERS LIMITED – ASX WES, BUNNINGS GROUP LIMITED, TARGET AUSTRALIA PTY LTD, WOOLWORTHS LIQUOR, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, ARGO INVESTMENTS LIMITED – ASX ARG

Life yet in department stores says Macy’s exec

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Original article by Patrick Hatch
The Age – Page: 20 : 16-Jan-18

Terry Lundgren, the executive chairman of US department store chain Macy’s, says Australian retailers should aim to compete with Amazon by offering unique products and a unique shopping experience. Lundgren is upbeat about the outlook for department stores, and says they can survive by adapting their business models to reflect changes in the sector. Macy’s has scaled back its store numbers in recent years and opened discount outlets in some of its stores. Myer Holdings has adopted the same strategies in Australia.

CORPORATES
RH MACY AND COMPANY INCORPORATED, AMAZON.COM INCORPORATED, MYER HOLDINGS LIMITED – ASX MYR, BLOOMINGDALES, BLUEMERCURY, TJ MAXX, NATIONAL RETAILERS FEDERATION

Myer profit warning a present for Lew

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Original article by Eli Greenblat
The Australian – Page: 20 : 15-Dec-17

Solomon Lew might be more likely to get support for his push for an extraordinary general meeting of Myer shareholders after the department store chain issued another profit warning on 14 December. Lew is Myer’s largest shareholder through Premier Investments, and he has been attacking the Myer board for some months over what he claims is its flawed business strategy. Myer’s shares fell to a record low after it revealed that sales for the last two weeks were down five per cent.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, PREMIER INVESTMENTS LIMITED – ASX PMV, OROTONGROUP LIMITED – ASX ORL, VERTIUM ASSET MANAGEMENT, LIVE CLOTHING, LOVER

Department stores set for decade-long tumble

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Original article by Luke Misthos
The Australian Financial Review – Page: 17 : 12-Dec-17

The value of Australia’s department store sector will decline to $A16.7 billion (excluding the value of GST) in 2027, according to Morningstar. The sector is currently valued at $A17.5 billion. Morningstar predicts that sales earned by "bricks and mortar" department stores will decline by two per cent annually between now and 2027, while the number of physical stores will fall by 26 per cent. Morningstar contends that Kmart is best-equipped to meet the challenge posed by Amazon.

CORPORATES
MORNINGSTAR PTY LTD, KMART AUSTRALIA LIMITED, AMAZON.COM INCORPORATED, MYER HOLDINGS LIMITED – ASX MYR, WESFARMERS LIMITED – ASX WES, TARGET AUSTRALIA PTY LTD, DAVID JONES LIMITED, WOOLWORTHS GROUP LIMITED – ASX WOW, BIG W DISCOUNT STORES

Myer trims staff hours to cut costs

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 28-Nov-17

Department store chain Myer is cutting staff hours at its poorer performing stores to help reduce costs, although the move appears at odds with CEO Richard Umbers’ New Myer strategy. A key feature of the strategy involves boosting "customer facing hours". Myer’s same-store sales fell by 2.1 per cent in the three months to October, and Umbers told its AGM on 24 November that there had been no improvement since then. Myer has been the subject of sustained attack recently from major shareholder Solomon Lew over its performance.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, PREMIER INVESTMENTS LIMITED – ASX PMV, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, DEUTSCHE BANK AG

Sevior backs Lew push for Myer seats

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Original article by Sue Mitchell
The Australian Financial Review – Page: 12 : 22-Nov-17

Airlie Funds Management supports Solomon Lew’s bid to secure seats on the Myer board. Lew is the chairman of Premier Investments, which acquired a 10.8 per cent stake in Myer in March, only to see the value of its stake fall by over 40 per cent in six months. Airlie owns seven per cent of Premier, and Airlie founder John Sevior says it would be fair to say that Premier’s shareholders were not impressed by Lew’s decision to buy a stake in Myer.

CORPORATES
AIRLIE FUNDS MANAGEMENT PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, PREMIER INVESTMENTS LIMITED – ASX PMV, CGI GLASS LEWIS PTY LTD, OWNERSHIP MATTERS PTY LTD, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, UBS HOLDINGS PTY LTD, SMIGGLE PTY LTD, PORTMANS PTY LTD, JUST JEANS PTY LTD, DOTTI, JAY JAY’S JEANS WAREHOUSE PTY LTD, BREVILLE GROUP LIMITED – ASX BRG

Myer director hits back at Lew over experience

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Original article by Eli Greenblat
The Australian – Page: 19 : 21-Nov-17

Myer director Ian Cornell believes major shareholder Solomon Lew is wrong to claim that the Myer board lacks retail experience. Lew, whose Premier Investments owns 10.8 per cent of the department store chain’s shares, has been increasingly critical of the Myer board in recent months. Lew’s contention that it does not have enough retail experience has been one of his criticisms. Cornell’s retail experience includes over 20 years with Woolworths, and he is also on the board of retailer Baby Bunting. Myer will hold its AGM on 24 November, and Lew has promised to oppose all resolutions

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, PREMIER INVESTMENTS LIMITED – ASX PMV, WOOLWORTHS LIMITED – ASX WOW, BABY BUNTING GROUP LIMITED – ASX BBN, WESTFIELD CORPORATION – ASX WFD, BABY BUNTING GROUP LIMITED – ASX BBN, FRANKLINS LIMITED

‘Enormously damaging’: Hounsell strikes back at Lew

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 21 : 31-Oct-17

Gary Hounsell has urged Myer shareholders to elect him and two other independent directors to its board at its AGM on 24 November. The election of Hounsell, who is Myer’s chairman-designate, and the other two directors is opposed by Solomon Lew’s Premier Investments, which is Myer’s largest shareholder. Lew has requested three seats on the Myer board, but Hounsell says this would amount to him controlling 43 per cent of non-executive director roles. Hounsell has told Myer shareholders that Lew appears to want to gain control of the company without them benefiting from any takeover premium.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, PREMIER INVESTMENTS LIMITED – ASX PMV, DOTTI, PORTMANS PTY LTD, PETER ALEXANDER SLEEPWEAR PTY LTD, WOOLWORTHS LIMITED – ASX WOW, JUST JEANS PTY LTD, JAY JAY’S JEANS WAREHOUSE PTY LTD, JACQUELINE EVE GROUP, SMIGGLE PTY LTD