DEPARTMENT STORES – AUSTRALIA

Woolies chief sees green shoots

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Original article by Eli Greenblat
The Australian – Page: 19 & 23 : 26-Aug-16

Australian-listed retailer Woolworths has posted a 2015-16 net loss of $A1.23bn, while revenue was down 1.2 per cent at $A58.08bn. The result was marred by write-downs and impairment charges exceeding $A4bn. CEO Brad Banducci says further reducing grocery prices will continue to be a priority in 2016-17. He adds that there was 0.3 per cent growth in like-for-like store sales during the first eight weeks of the financial year. Shareholders will receive a final dividend of $A0.33 per share.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, ENDEAVOUR DRINKS GROUP, DAN MURPHY’S, AUSTRALIAN LEISURE AND HOSPITALITY GROUP LIMITED

Can Myer shrink to greatness?

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Original article by James Thomson
The Australian Financial Review – Page: 16 : 21-Jun-16

Credit Suisse analyst Grant Saligari suggests that Australian-listed department store group Myer should reduce its floor space by up to 20 per cent. Saligari visited Myer’s stores at Doncaster, Eastland, Chadstone and Highpoint in Victoria and concluded that their trading space – at more than 12,000 sq m in each – is excessive. Improvements in customer services and refurbishment of stores are also necessary.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP

Woolies hit by ratings downgrade

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Original article by Sue Mitchell
The Australian Financial Review – Page: 23 & 32 : 5-May-16

Standard & Poor’s has reduced the long-term credit rating of Woolworths from "BBB+" to " BBB". S&P had previously downgraded the Australian retail giant’s credit rating in August 2015. Rival ratings agency Moody’s will also review its "Baa2" rating on the stock, having downgraded it from "Baa1" in March 2016. The bearish sentiment follows Woolworths’ disappointing financial results for the March quarter. Analysts in turn have reduced their earnings forecasts for 2016 and 2017.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, STANDARD AND POOR’S CORPORATION, MOODY’S INVESTORS SERVICE INCORPORATED, DEUTSCHE BANK AG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, JP MORGAN AUSTRALIA LIMITED, BIG W DISCOUNT STORES, ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD

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

Harris Scarfe tips growth through Debenhams deal

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 14-Dec-15

Australian department store group Harris Scarfe has secured an alliance with UK-based Debenhams. Harris Scarfe expects its sales to be boosted by about $A100m by the deal to open about 10 stand-alone Debenhams stores in Australia via a franchise agreement. Harris Scarfe also expects revenue to be bolstered by a deal to sell a range of Debenhams’ brands in its stores. The group also intends to open up to 15 new stores in coming years.

CORPORATES
HARRIS SCARFE HOLDINGS LIMITED, DEBENHAMS RETAIL PLC, PEPKOR SOUTH EAST ASIA PTY LTD, BEST AND LESS PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, THE GAP INCORPORATED, TOP SHOP, J SAINSBURY PLC, HABITAT, MOMENTUM CORPORATE SOLUTIONS PTY LTD, POSTIE PLUS GROUP LIMITED, STEINHOFF INTERNATIONAL HOLDINGS LIMITED, TARGET AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, BIG W DISCOUNT STORES

Woolies shareholders look for green shoots

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

Woolworths’ strategy to turn around the performance of its supermarkets division is likely to come under scrutiny at its AGM on 26 November 2015. Some shareholders do not expect any real improvement in the business for another 6-12 months, following Woolworths’ move to reduce grocery prices and ramp up investment in its supermarkets. The future of assets such as the Masters and Big W businesses are also likely to be a key focus for investors.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, LUMINIS PARTNERS PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, ANCHORAGE CAPITAL PARTNERS PTY LTD, BEST AND LESS PTY LTD, NBN CO LIMITED

Woolies taps Best & Less boss for seat

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 & 22 : 17-Nov-15

Australian-listed retailer Woolworths is believed to have invited Holly Kramer to become a non-executive director. Kramer is on the boards of AMP and Nine Entertainment Company, having stepped down as CEO of discount department store group Best & Less in May 2015. Woolworths is seeking to appoint three directors to replace Ian MacFarlane, Christine Cross and David Mackay. It has also yet to appoint a successor to CEO Grant O’Brien, who may remain at the helm until his replacement is appointed.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, BEST AND LESS PTY LTD, AMP LIMITED – ASX AMP, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, BIG W DISCOUNT STORES, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, TESCO PLC, KELLOGG (AUSTRALIA) PTY LTD, RESERVE BANK OF AUSTRALIA, YALE UNIVERSITY, GEORGETOWN UNIVERSITY, FORD MOTOR COMPANY AUSTRALIA LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, PACIFIC BRANDS LIMITED – ASX PBG, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, CGI GLASS LEWIS PTY LTD

Woolies credit outlook cut, rating questioned

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 6-Nov-15

Moody’s Investors Service has maintained Woolworths’ "Baa1" credit rating, although the retailer’s credit outlook has been downgraded from "stable" to "negative". Ian Chitterer of Moody’s attributes the move to factors such as disappointing sales for the first quarter of 2015-16 and Woolworths’ third earnings downgrade in less than a year. He has also expressed concern about the uncertainty concerning the timeframe for appointing a new CEO.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S CORPORATION, BIG W DISCOUNT STORES, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Goode choice, David Jones!

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 22-Oct-15

A Roy Morgan Single Source survey has confirmed that department store chain David Jones has made a savvy move by recruiting recently retired indigenous AFL player Adam Goodes as one of seven new brand ambassadors. The survey, which was carried out in the year to June 2015, shows that 78.1 per cent of Australians aged 14+ who shop at DJs in an average four weeks agree that "Aboriginal culture is an essential component of Australian society". This compares with 73.1 per cent of Australians aged 14+ overall.

CORPORATES
ROY MORGAN RESEARCH LIMITED, DAVID JONES LIMITED, AUSTRALIAN FOOTBALL LEAGUE, SYDNEY SWANS FOOTBALL CLUB

Quality over quantity: another customer satisfaction win for Harris Scarfe

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 21-Oct-15

A Roy Morgan Single Source survey has found that Harris Scarfe has a customer satisfaction rating of 90 per cent among Australians aged 14+ who visited a discount department store in the year to August 2015. Harris Scarfe has now taken out top spot in the Discount Department Store category of the Roy Morgan Research Customer Satisfaction Awards for six consecutive months. Target and Target Country have customer satisfaction ratings of 88 per cent and 87 per cent respectively.

CORPORATES
ROY MORGAN RESEARCH LIMITED, HARRIS SCARFE HOLDINGS LIMITED, TARGET AUSTRALIA PTY LTD, TARGET COUNTRY, KMART AUSTRALIA LIMITED, BIG W DISCOUNT STORES, BEST AND LESS PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD