GROCERIES – PRICES – AUSTRALIA

Woolies drop raises fears of price war

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 3-Nov-15

Shareholders in Australian-listed food and grocery retailers fear that a price war may erupt again, threatening the value of their investments. UBS analyst Ben Gilbert believes that the risk of a price war is quite real, considering that the companies are determined to defend their market share. Woolworths shares declined two per cent on 2 November 2015 to a four-year low of $A23.60.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, METCASH LIMITED – ASX MTS, WESFARMERS LIMITED – ASX WES, UBS HOLDINGS PTY LTD, NIKKO ASSET MANAGEMENT GROUP, ASDA GROUP PLC, LIDL GMBH & CO KG, TESCO PLC, J SAINSBURY PLC, ALDI STORES SUPERMARKETS PTY LTD

Coles spends $100m on keeping food prices low

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 23-Oct-15

Wesfarmers-owned Coles has reported that its food and liquor sales rose by 4.7 per cent to $A7.6bn in the September 2015 quarter. Grocery prices at Coles supermarkets fell by 1.3 per cent during the period, with the group spending $A100m on price cuts. Coles intends to maintain this level of spending in the next several quarters, in the wake of Woolworths’ plans to spend $A500m on cutting grocery prices. The Bunnings, Kmart and Target businesses also recorded sales growth in the quarter.

CORPORATES
COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, WOOLWORTH CORPORATION, BUNNINGS GROUP LIMITED, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, CITIGROUP PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Supermarkets cut prices in private-label drive

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Original article by Catie Low
The Australian Financial Review – Page: 27 : 8-Oct-15

Research by Deutsche Bank shows that Woolworths reduced the cost of its private-label grocery products by nine per cent in the September 2015 quarter. Rival Coles in turn reduced its house brand prices by seven per cent during the period. Meanwhile, the prices of branded products at Woolworths fell by 0.8 per cent and rose by 5.7 per cent at Coles. Woolworths says it has invested some $A250m on price reductions since early 2015.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, DEUTSCHE BANK AG, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN BUREAU OF STATISTICS

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

Sales growth slows as grocery prices cut

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Original article by Sue Mitchell
The Australian Financial Review – Page: 27 : 5-Aug-15

New data shows that there was 2.9 per cent growth in Australian supermarket and grocery store sales in June 2015. This is the lowest rate of growth since September 2013, which is primarily due to price discounting in the sector. Meanwhile, growth in total food and liquor sales slowed to 2.7 per cent in June. Woolworths is seeking to counter stronger sales growth at Coles by reducing grocery prices, while Metcash has launched a price-matching initiative for independent grocery retailers that operate under its IGA banner.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, ALDI STORES SUPERMARKETS PTY LTD, DEUTSCHE BANK AG, MORGAN STANLEY AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, AUSTRALIAN BUREAU OF STATISTICS

Sales growth slows as grocery prices cut

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Original article by Sue Mitchell
The Australian Financial Review – Page: 27 : 5-Aug-15

New data shows that there was 2.9 per cent growth in Australian supermarket and grocery store sales in June 2015. This is the lowest rate of growth since September 2013, which is primarily due to price discounting in the sector. Meanwhile, growth in total food and liquor sales slowed to 2.7 per cent in June. Woolworths is seeking to counter stronger sales growth at Coles by reducing grocery prices, while Metcash has launched a price-matching initiative for independent grocery retailers that operate under its IGA banner.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, ALDI STORES SUPERMARKETS PTY LTD, DEUTSCHE BANK AG, MORGAN STANLEY AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, AUSTRALIAN BUREAU OF STATISTICS

Coles, Woolies cut private label prices to ward off Aldi incursion

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

Data from Deutsche Bank shows that there was a 1.3 per cent increase in the prices of brand-name groceries in the June 2015 quarter. However, the prices of private-label products fell by 6.1 per cent, as Coles and Woolworths sought to defend their market share against Aldi. Deutsche’s supermarket inflation survey also shows that the price of a basket of brand-name groceries at Coles increased by 5.1 per cent during the quarter, compared with a 2.6 decline at Woolworths.

CORPORATES
DEUTSCHE BANK AG, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, MACQUARIE EQUITIES LIMITED, METCASH LIMITED – ASX MTS, SUPA IGA

Light at end of the tunnel for Ritchies Stores

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Original article by Sue Mitchell
The Australian Financial Review – Page: 21 & 26 : 9-Jul-15

Ritchies Stores’ earnings have fallen by 73 per cent since 2011, but chairman Fred Harrison says the grocery chain returned to profit growth in the 2014-15 financial year. Ritchies is supplied by grocery wholesaler Metcash, and Harrison notes that Metcash’s store refurbishment and price-matching strategy for the IGA network has helped to boost his company’s sales. Harrison adds that price competitiveness has become essential for independent grocery retailers.

CORPORATES
RITCHIES STORES PTY LTD, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MACQUARIE SECURITIES PTY LTD

Woolworths faces $1b hit from price cuts

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Original article by Sue Mitchell
The Australian Financial Review – Page: 27 : 20-May-15

Morgan Stanley estimates that Aldi’s private-label grocery products cost 27 per cent less than Woolworths’ Select brand and six per cent less than Coles Group’s home brand. However, Aldi products cost 21 per cent more than Woolworths’ entry-level Homebrand. Tom Kierath of Morgan Stanley warns that Woolworths’ earnings could fall by between 5.09 per cent and 33 per cent if it reduces the prices of its private-label products to boost its competitiveness.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, ALDI STORES SUPERMARKETS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD

Woolworths advised to cut everyday prices in grocery war

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 7-Apr-15

Price competition between Woolworths, Coles and IGA is escalating. UBS states in a new report that the level of intensity in competition between Australian supermarket chains is rising, which suggests that an all-out price war is likely to erupt. UBS advises Woolworths to protect its market share by reducing the prices of popular products and cutting the number of products on promotion

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, INDEPENDENT GROCERS OF AUSTRALIA, METCASH LIMITED – ASX MTS, ENERGIZER AUSTRALIA PTY LTD, CADBURY AUSTRALIA LIMITED, KIRKS FINE FOODS, ALBERT HEIJN, KONINKLIJKE AHOLD NV, UBS HOLDINGS PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, SAFEWAY INCORPORATED, KROGER COMPANY, TESCO PLC, J SAINSBURY PLC, ASDA GROUP PLC, WESFARMERS LIMITED – ASX WES