RETAIL TRADE – 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

Coles shifts focus from price to convenience

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 20 : 16-Oct-18

Coles’ Little Shop plastic groceries promotion helped it to achieve a 5.1 per cent increase in same-store food sales in the September quarter, as did its free plastic bags offer. However, new MD Steven Cain said it is unlikely to achieve the same sort of growth in the December quarter. With Coles in the process of becoming a stand-alone company as it demerges from Wesfarmers, Cain says his priorities include making life easier for customers by adopting new convenience store formats and improving its online business.

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

Wesfarmers to outline Coles move

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Original article by Eli Greenblat
The Australian – Page: 19 : 4-Oct-18

There is speculation that Wesfarmers could release the scheme booklet for its proposed demerger of Coles before 15 October, when the supermarket chain will announce its sales figures for the first quarter of 2018-19. JPMorgan has upgraded its forecast for same-store sales growth from 2.5 per cent to four per cent. In contrast, the firm has scaled back Woolworths’ same-store sales growth expectations from 1.8 per cent to 1.3 per cent. However, Shaun Cousins of JPMorgan expects Woolworths to outperform Coles in the medium-term.

CORPORATES
WESFARMERS LIMITED – ASX WES, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS SUPERMARKETS, WOOLWORTHS GROUP LIMITED – ASX WOW, JP MORGAN AUSTRALIA LIMITED

Suppliers revolt over Woolies’ plan to cut data

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Original article by Eli Greenblat
The Australian – Page: 19 : 1-Oct-18

Woolworths will make changes to the sales data it provides to suppliers as from 2019. The retailer states the data will be of a much broader nature, with intellectual property and competitive information being protected from being shared with rival companies. However, suppliers have expressed concern about the proposed changes, stating that not having access to specific sales data will leave them "defenceless" if Woolworths decides to stop stocking their products. They are also concerned that Woolworth’s private label brands will benefit from the changes.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW, AUSTRALIAN FOOD AND GROCERY COUNCIL

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

Officeworks tipped for more growth

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

Wesfarmers’ Officeworks division posted earnings growth of 8.3 per cent in fiscal 2018, with sales rising by 9.1 per cent and return on capital up 13 per cent. MD Mark Ward is upbeat about the outlook for Officeworks, expressing confidence that it can maintain the recent growth momentum. Although Ward will retire in late 2018, Wesfarmers has yet to appoint a successor as it is focused on the upcoming demerger of Coles.

CORPORATES
OFFICEWORKS SUPERSTORES PTY LTD, WESFARMERS LIMITED – ASX WES, COLES SUPERMARKETS AUSTRALIA PTY LTD, AMAZON.COM INCORPORATED, GOOGLE INCORPORATED, ONTHEGO PTY LTD

Myer plunges to $486m loss but debt refinanced and covenants eased

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Original article by Sue Mitchell
The Australian Financial Review – Page: Online : 13-Sep-18

Shares in retailer Myer fell by 4.6 per cent on 12 September after it announced a full-year net loss of $486 million. Underlying net profit fell 52.2 per cent to $32.5 million, while EBIT declined by 48 per cent to $55.4 million. Sales fell by 3.2 per cent to $3.1 billion, although online sales increased by 34 per cent to $192.5 million. Solomon Lew, whose Premier Investments is Myer’s biggest shareholder with 10.9 per cent, savaged the result. He said the Myer board was "a disgrace", and that chairman Gary Hounsell should stand down immediately.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, PREMIER INVESTMENTS LIMITED – ASX PMV, HOUSE OF FRASER HOLDINGS PLC, JP MORGAN AUSTRALIA LIMITED, CITIGROUP PTY LTD

The battle for the $2.9bn fresh bread market

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Original article by Roy Morgan
Market Research Update – Page: Online : 3-Sep-18

Australia’s $2.9 billion fresh bread market is dominated by the two supermarket giants Woolworths Group and Coles Group who represent a combined 51.9% of the fresh bread market, according to the latest Roy Morgan results in the year to June 2018. Supermarkets now comprise over two-thirds of the entire fresh bread market, with the remaining 31% split between specialty bread shops including Bakers Delight, Brumby’s Bakery and other bread shops, and between delicatessens, milk bars, convenience store and other stores. Roy Morgan CEO Michele Levine says although Woolworths and Coles have now comprised over 50% of the fresh bread market for over five years, the success of Bakers Delight and Aldi in growing market share shows there is space for nimble competitors.

CORPORATES
ROY MORGAN LIMITED, WOOLWORTHS GROUP LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, BAKER’S DELIGHT HOLDINGS LIMITED, BRUMBY’S BAKERIES HOLDINGS LIMITED, ALDI STORES SUPERMARKETS PTY LTD, IGA DISTRIBUTION PTY LTD

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

Upbeat Wesfarmers flags growth, capital management

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 & 22 : 16-Aug-18

Perth-based conglomerate Wesfarmers has posted a 2017-18 net profit of $A1.19bn, which is 58.3 per cent lower than previously. The full-year result was marred by writedowns, including a $1.4bn hit due to its ill-fated expansion into the UK and Ireland. Wesfarmers’ underlying net profit from continuing operations exceeded market expectations at $2.9bn. MD Rob Scott has indicated that surplus capital following asset sales and the Coles demerger will be returned to shareholders.

CORPORATES
WESFARMERS LIMITED – ASX WES, COLES GROUP LIMITED, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, BUNNINGS GROUP LIMITED, KMART TYRE AND AUTO, OFFICEWORKS SUPERSTORES PTY LTD