DEPARTMENT STORES – AUSTRALIA

Woolworths ‘treasure chest’ ready to open

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Original article by Catie Low
The Australian Financial Review – Page: 15 : 9-Oct-15

Bank of America Merrill Lynch analyst David Errington estimates that Woolworths could unlock about $A3bn worth of capital by streamlining its operations. He argues that Woolworths should focus on its core food and liquor business, while retaining its gaming division and offloading Big W and exiting the loss-making Masters hardware joint venture. The Masters business in particular may come under scrutiny when Woolworths completes its board renewal process.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, LOWE’S COMPANIES INCORPORATED, CITIGROUP PTY LTD, TESCO PLC, KELLOGG COMPANY, RESERVE BANK OF AUSTRALIA

Iain Nairn leaves DJs abruptly, citing personal reasons

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Original article by Matthew Drummond
The Australian Financial Review – Page: 1 & 8 : 1-Oct-15

David Jones CEO Iain Nairn has declined to comment on his resignation after just over 12 months in the role. He will remain at the department store group during a three-month transition to new CEO John Dixon, who was previously an executive at Marks & Spencer in the UK. A spokeswoman for David Jones’s parent company, South Africa-based Woolworths Holdings, has refuted speculation that Nairn’s resignation was linked to an audit of expense accounts.

CORPORATES
DAVID JONES LIMITED, WOOLWORTHS HOLDINGS LIMITED, MARKS AND SPENCER PLC, COUNTRY ROAD LIMITED, CITIGROUP PTY LTD

Myer investors blame guidance for 25pc plunge

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 4-Sep-15

Myer’s share price plunged 25 per cent as the stock emerged from a two-day trading halt on 3 September 2015. The stock fell to a record low of $A.090 on 3 September 2015. More than 35 million shares changed hands in the wake of the poor 2015 profit result and a disappointing outlook for 2016. However, there was support for the $A600 million "New Myer" turnaround plan proposed by CEO Richard Umbers.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, GOLDMAN SACHS AUSTRALIA PTY LTD

Myer to spend $600m going after David Jones

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Original article by Sue Mitchell
The Australian Financial Review – Page: 1 : 2-Sep-15

Myer has reported a fall of 21.3 per cent in underlying net profit to $A77.5 million in 2014-15. Net profit declined 70 per cent to $A29.8 million. Total sales increased 1.7 per cent to $A3.19 billion. Myer CEO Richard Umbers said on 1 September 2015 that the company would reorient its business model towards wealthy customers. Myer plans to invest $A600 million in new products and services.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, WOOLWORTHS HOLDINGS LIMITED, DAVID JONES LIMITED, TOPSHOP, AUSTRALIA POST, PLATYPUS ASSET MANAGEMENT PTY LTD, PERPETUAL INVESTMENTS

Myer still a fashionable number

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Original article by Sue Mitchell
The Australian Financial Review – Page: 3 : 14-Aug-15

Myer’s spring parade on 13 August 2015 featured 27 brands. The Australian-listed retailer is in the process of changing its business model. Myer CEO Richard Umbers and chief merchandise and marketing officer Daniel Bracken believe that sales could be revived by focusing on fewer but stronger brands. In July 2015, the company removed about 100 national and international brands from its offer while adding new labels such as Aje, Daniel Avakian, Jack & Jones, and Calvin Klein White Label.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, CALVIN KLEIN INCORPORATED, SNAPCHAT INCORPORATED, INSTAGRAM LLC, TWITTER INCORPORATED, FACEBOOK INCORPORATED

Myer still a fashionable number

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Original article by Sue Mitchell
The Australian Financial Review – Page: 3 : 14-Aug-15

Myer’s spring parade on 13 August 2015 featured 27 brands. The Australian-listed retailer is in the process of changing its business model. Myer CEO Richard Umbers and chief merchandise and marketing officer Daniel Bracken believe that sales could be revived by focusing on fewer but stronger brands. In July 2015, the company removed about 100 national and international brands from its offer while adding new labels such as Aje, Daniel Avakian, Jack & Jones, and Calvin Klein White Label.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, CALVIN KLEIN INCORPORATED, SNAPCHAT INCORPORATED, INSTAGRAM LLC, TWITTER INCORPORATED, FACEBOOK INCORPORATED

Suppliers shocked as DJs and Myer dump brands

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Original article by Sue Mitchell
The Australian Financial Review – Page: 21 : 29-Jul-15

Myer Holdings recorded sales growth of 1.7 per cent in the 10 months to April 2015. The department store group hopes to boost sales by introducing a range of new brands, including Calvin Klein White Label and Oscar de la Renta. However, this will be at the expense of about 100 brands which will no longer be stocked. David Jones also discontinued some brands earlier in 2015. It recorded sales growth of more than 10 per cent in the first half of 2015.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, CALVIN KLEIN INCORPORATED, OSCAR DE LA RENTA, DANIEL AVAKIAN, AJE, JACK AND JONES, FCUK, COUNTRY ROAD LIMITED, TRENERY, SEED

Staff cuts risk ‘dangerous spiral’ at Myer

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

Citigroup’s Craig Woolford says Myer Holdings’ plan to scale back its permanent workforce could backfire by adversely affecting customer service and in turn leading to lower sales. The department store group also proposes a 20 per cent reduction in working hours for casual and part-time employees. Myer argues that the changes will result in greater rostering flexibility during periods when staff are most in demand. Myer shed 80 employees at its head office earlier in 2015.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, CITIGROUP PTY LTD, DAVID JONES LIMITED, WOOLWORTHS HOLDINGS LIMITED, CLSA AUSTRALIA PTY LTD, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION

Woolworths to offload two key DJs sites

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 23-Jul-15

Woolworths Holdings CEO Ian Moir says the South African group plans to reinvest the proceeds of David Jones asset sales into the department store business. Woolworths is set to sell one of the David Jones stores in both the Melbourne and Sydney CBDs. The two stores could fetch around $A400m in total, and Moir says the remaining two stores in the CBDs will be expanded and upgraded. The David Jones food halls will also be upgraded at a cost of $A8m.

CORPORATES
WOOLWORTHS HOLDINGS LIMITED, DAVID JONES LIMITED, COUNTRY ROAD LIMITED, WITCHERY FASHIONS PTY LTD, TRENERY, SEED, FCUK

Woolies investors fear more pain before gain

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Original article by Sue Mitchell
The Australian Financial Review – Page: 1 & 12 : 19-Jun-15

Fund managers and shareholders are concerned about the possible actions that will be taken by the successor to Woolworths CEO Grant O’Brien in a bid to turn around its fortunes. These include reduced profit margins and asset writedowns. Ben Gilbert of UBS is concerned that Woolworths may seek to combat falling sales by instigating a grocery price war, while Sheridan Hure of Aurora Funds Management warns that Woolworths’ shares may keep falling.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, UBS HOLDINGS PTY LTD, AURORA FUNDS MANAGEMENT LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, NIKKO ASSET MANAGEMENT GROUP, EGON ZEHNDER INTERNATIONAL, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, BIG W DISCOUNT STORES, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, DEUTSCHE BANK AG, MERRILL LYNCH (AUSTRALIA) PTY LTD