RETAIL TRADE – AUSTRALIA

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

JB Hi-Fi growth slows as competition intensifies

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Original article by Sue Mitchell
The Australian Financial Review – Page: 11 & 16 : 14-Aug-18

Consumer electronics retailer JB Hi-Fi has posted a 2017-18 underlying net profit of $233.2m, which is 12.3 per cent higher than previously. Group earnings rose 14.5 per cent to $350.6m, while its Australian division’s earnings were 11.4 per cent higher at $292.3m. Sales grew by 21.8 per cent in 2017-18, but expectations of competition from key rivals and fewer store openings have prompted the company to pare back its sales growth forecast to just 3.6 per cent in 2018-19. Shareholders will receive a full-year dividend of $0.132 per share.

CORPORATES
JB HI-FI LIMITED – ASX JBH, THE GOOD GUYS, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, AMAZON.COM INCORPORATED, MARTIN CURRIE INVESTMENT MANAGEMENT LIMITED, JP MORGAN AUSTRALIA LIMITED

Williams top shoe store ahead of The Athlete’s Foot

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Original article by Roy Morgan
Market Research Update – Page: Online : 13-Aug-18

A Roy Morgan Single Source survey shows that Williams has Australia’s most satisfied shoe store customers, with a customer satisfaction rating of 90.4% in June 2018, an increase of 8% from a year ago. The Athlete’s Foot improved its customer satisfaction by 3% from a year ago to 89.6%, while customer satisfaction for third-placed Spend-less Shoes declined by 5% over the last year to 81%. Analysing shows that nearly 1.4 million Australians shop at a shore store in an average four weeks. Over three-fifths of shoppers at Australian shoe stores are women, equating to around 830,000 shoppers, compared to only 540,000 men.

CORPORATES
ROY MORGAN LIMITED, WILLIAMS, THE ATHLETE’S FOOT AUSTRALIA PTY LTD, SPENDLESS SHOES PTY LTD

Autobarn overtakes Supercheap Auto for Auto store satisfaction

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Original article by Roy Morgan
Market Research Update – Page: Online : 23-Jul-18

Autobarn has won Roy Morgan’s Auto Store Customer Satisfaction Award for June 2018, with a customer satisfaction rating of 90.1%. Autobarn has increased its customer satisfaction by 8.2% over the last year, and it has now won three monthly customer satisfaction awards in 2018. Runner-up Supercheap Auto has also increased its customer satisfaction over the last year (up 2.8% to 88.4%) while third-placed Repco has seen a decline in customer satisfaction (down 1.5% to 84.1%). Analysis shows that more than three million Australians shop at an Auto store in an average month; over 70% (2.16 million) are men, while less than 30% are women (920,000). The generations most likely to shop at Auto Stores are Generation X (840,000), Baby Boomers (800,000) and Millennials (730,000); these three generations comprising over three-quarters of the overall Auto Store market.

CORPORATES
ROY MORGAN LIMITED, AUTOBARN PTY LTD, SUPER CHEAP AUTO, REPCO

Myer to shed head office jobs but keep stores

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Original article by Sue Mitchell
The Australian Financial Review – Page: 25 : 20-Jul-18

Department store group Myer has reduced staff numbers at its head office in Melbourne’s Docklands precinct by about 30 per cent in recent years, and CEO John King is expected to seek further job cuts. However, sources have rejected suggestions that up to 50 per cent of head office staff could be retrenched. King also intends to reduce the number of Myer stores, although he is expected to wait until existing leases expire. Meanwhile, David Jones has posted 2.2 per cent growth in sales for the first half of 2018, and growth of 2.7 per cent in same-store sales. Full-year sales were 0.9 per cent lower than previously.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, WOOLWORTHS HOLDINGS LIMITED, HOUSE OF FRASER HOLDINGS PLC, SEARS HOLDINGS, KMART CORPORATION, LATITUDE FINANCIAL SERVICES LIMITED, PREMIER INVESTMENTS LIMITED – ASX PMV, VICTORIA RACING CLUB LIMITED

Primed for retail action as Amazon slashes prices up to 70pc

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Original article by Sue Mitchell
The Australian Financial Review – Page: 11 : 17-Jul-18

Amazon launched its first Prime Day promotion in Australia on 16 July, with the e-commerce giant cutting prices by up to 70 per cent. Amazon applied its biggest discounts to its own products, including its Echo Plus and Echo Dot speakers. Brands that Amazon reduced prices on included Lorna Jane, Nike, Tommy Hilfiger and Sony, while Myer, Kmart and Woolworths are among the Australian retailers that it undercut. Amazon’s Australian Prime Day will run for 36 hours; its first Prime Day was launched in the US in 2015.

CORPORATES
AMAZON.COM INCORPORATED, LORNA JANE PTY LTD, NIKE AUSTRALIA PTY LTD, TOMMY HILFIGER AUSTRALIA PTY LTD, SONY AUSTRALIA LIMITED, MYER HOLDINGS LIMITED – ASX MYR, KMART AUSTRALIA LIMITED, WOOLWORTHS GROUP LIMITED – ASX WOW, JB HI-FI LIMITED – ASX JBH, KOGAN.COM LIMITED – ASX KGN, CATCH-OF-THE-DAY.COM.AU, BABY BUNTING GROUP LIMITED – ASX BBN, DAVID JONES LIMITED, MINDSHARE, EUROMONITOR, EBAY AUSTRALIA AND NEW ZEALAND PTY LTD, TARGET AUSTRALIA PTY LTD