RETAIL TRADE – AUSTRALIA

Coles and Woolworths continue to gain share in fresh fruit and vegetable market

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

Woolworths and Coles had a combined share of 51.3% of Australia’s fresh fruit and vegetable market in the year to March 2018, according to a Roy Morgan Single Source survey. The combined market share of other retail outlets (including Aldi, IGA, fruit shops, markets and other supermarkets) was 48.7%. Woolworths’ share of the $A18bn market was 27.4%, up 1.3% points, although Coles’ market share has fallen 0.7% to 23.9%. Aldi’s share of the fresh fruit and vegetable market is up 0.6% to 10.1%; it seems set to overtake fruit shops, which currently account for 15.8% of the market.

CORPORATES
ROY MORGAN LIMITED, WOOLWORTHS GROUP LIMITED – ASX WOW, COLES GROUP LIMITED, ALDI STORES SUPERMARKETS PTY LTD

JB Hi-Fi stays firm on outlook

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Original article by Eli Greenblat
The Australian – Page: 26 : 8-May-18

Australian-listed JB Hi-Fi has defended its decision to include a profit warning in a presentation to the recent Macquarie Australia Conference rather than issuing a statement to the stock exchange. Responding to a query from stock exchange operator ASX Limited, the consumer electronics retailer said it had been of the view that the information in the presentation would not have a material effect on its share price. JB Hi-Fi’s shares fell by more than 10 per cent following the presentation.

CORPORATES
JB HI-FI LIMITED – ASX JBH, ASX LIMITED – ASX ASX, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG

Kaufland set to open first store, suppliers told

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Original article by Eli Greenblat
The Australian – Page: 19 : 30-Apr-18

Grocery suppliers have been advised by German supermarket operator Kaufland that it plans to open its first Australian stores by the end of 2018. Kaufland has been advertising for executives in the past few months, with former Metcash and Woolworths executive Mark Hewlett joining it as chief operating officer. Its latest advertisements have called for executives with experience in areas such as fashion, accessories and homewares, leading to suggestions that it might be trying to take customers from general merchandise stores such as Kmart, Target and Big W.

CORPORATES
KAUFLAND STIFTUNG & CO KG, METCASH LIMITED – ASX MTS, WOOLWORTHS GROUP LIMITED – ASX WOW, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, DAVID JONES LIMITED, MYER HOLDINGS LIMITED – ASX MYR

Wesfarmers CEO resists M&A pressure

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 22 : 27-Apr-18

Wesfarmers CEO Rob Scott says he does not intend to make acquisitions just for the sake of it once the conglomerate has completed its demerger of Coles. Speaking on the release of Wesfarmers’ retail sales figures for the March quarter, he rejected rumours that it is interested in Fletcher Building. Outgoing Coles managing director John Durkan rejected claims that it had been increasing prices in an attempt to boost margins, noting that it cut the price of 500 products during the March quarter.

CORPORATES
WESFARMERS LIMITED – ASX WES, COLES SUPERMARKETS AUSTRALIA PTY LTD, FLETCHER BUILDING LIMITED – ASX FBU, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, OFFICEWORKS SUPERSTORES PTY LTD, JP MORGAN AUSTRALIA LIMITED, ARNHEM INVESTMENT MANAGEMENT PTY LTD

Aussies dare to splash the cash

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Original article by David Uren
The Australian – Page: 2 : 5-Apr-18

Data from the Australian Bureau of Statistics shows that retail sales increased by 0.6 per cent in February, while growth in sales for January has been upwardly revised to two per cent. Rahul Bajoria and Krishna Goradia of Barclays say that the February sales data may have been boosted by an increase in Chinese tourists for the lunar new year. Department stores recorded the strongest growth in sales during February, at 1.5 per cent.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, BARCLAYS BANK PLC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA

Myer rules out using VA to exit leases

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 27-Mar-18

Struggling retailer Myer is saddled with $A2.7 billion worth of leases, and it has been suggested that it could enter into voluntary administration in order to get out of its lease commitments. Such a strategy was adopted by retailers OrotonGroup and SumoSalad. However, a spokesperson for Myer says it has no plans to enter into voluntary administration, noting that it continues to be solvent. Joe Hayes of Wexted Advisors says that entering into voluntary administration could create more problems for Myer than it might solve.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, OROTONGROUP LIMITED – ASX ORL, SUMO SALAD, WEXTED ADVISORS, McGRATH NICOL AND PARTNERS SERVICES PTY LTD

Coles’ capital structure key to Wesfarmers demerger success

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 & 32 : 20-Mar-18

Wesfarmers will retain a shareholding of up to 20 per cent in Coles and a seat on its board if the proposed demerger proceeds. David Errington from Bank of America Merrill Lynch does not endorse this idea, saying it would be better for Coles long-term if it has an independent board and share register. Investors and analysts are of the view that the potential for Coles to succeed once the demerger is completed will depend largely on its balance sheet and capital structure.

CORPORATES
WESFARMERS LIMITED – ASX WES, COLES SUPERMARKETS AUSTRALIA PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, WOOLWORTHS GROUP LIMITED – ASX WOW, KKR AND COMPANY LP, JP MORGAN AUSTRALIA LIMITED, PARADICE INVESTMENT MANAGEMENT PTY LTD, AIRLIE FUNDS MANAGEMENT PTY LTD

Exiting Bunnings UK is the least bad outcome for Scott

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 13-Mar-18

The recent Arctic-like weather that afflicted the UK and Ireland was a mixed blessing for Wesfarmers’ struggling Bunnings business there. The inclement weather did not help its nursery operations, but it did lead to increased demand for products like sand, salt and snow shovels. The impact of the bad weather may extend the time needed for the strategic review that Wesfarmers CEO Rob Scott announced into Bunnings UK and Ireland in February to be completed. JP Morgan has concluded that it will cost Wesfarmers less to pull out of the UK and Ireland than it will for it to stay there.

CORPORATES
WESFARMERS LIMITED – ASX WES, BUNNINGS GROUP LIMITED, JP MORGAN AUSTRALIA LIMITED, WOOLWORTHS GROUP LIMITED – ASX WOW

Aussie Farmers Direct wilts in tough market

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Original article by Sue Mitchell
The Australian Financial Review – Page: 26 : 6-Mar-18

Aussie Farmers Direct was placed into voluntary administration on 5 March, 13 years after it first began delivering fresh produce to people at home. It had 100 franchisees and 260 employees, and Craig Shephard of KordaMentha says the business will cease trading immediately. One part of the company, Home Delivery Services, is not affected by the collapse and will continue to trade. Aussie Farmers Direct had sales of $A137m in 2014-15, but it lost $A15.5m. Its failure has been attributed to competition from supermarkets and meal-kit providers.

CORPORATES
AUSSIE FARMERS DIRECT, KORDA MENTHA AND COLLEAGUES PTY LTD, EQUITY PARTNERS PTY LTD, WOOLWORTHS GROUP LIMITED – ASX WOW, SHAW INVESTMENTS, COLES SUPERMARKETS AUSTRALIA PTY LTD, CRESCENT POINT, PEPPERLEAF, YOUFOODZ, FIVEPOINTFOUR, TASTEBOX, YOUR GROCER, THOMAS FARM KITCHEN, DISH’D, GOURMET DINNER SERVICE

2017 Pre-Christmas sales of just over $50 billion prediction spot on

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Original article by Roy Morgan
Market Research Update – Page: Online : 2-Mar-18

Roy Morgan’s annual retail sales forecast, undertaken in conjunction with the Australian Retailers Association (ARA), predicted total retail sales growth of 2.8% to $50.073 billion for the most important retailing period of the year: 15 November-24 December 2017. This is just 0.1% higher than the 2.7% growth achieved, with actual sales totalling $50.019 billion. There was growth across all six categories measured, with spending on Hospitality growing the fastest, by 4.1% to $7.123 billion, while the slowest-growing category was Department stores, for which spending increased 0.6% to $2.945 billion. Analysing retail sales figures on a State-by-State basis shows that South Australia grew fastest, with retail sales growing 5.1% to $3.326 billion, while growth was slowest in post-mining boom Western Australia, up just 0.3% to $5.4 billion. Australia’s two biggest States also grew strongly with Victoria up a healthy 4.7% to $12.839 billion and New South Wales up 2.8% to $16.128 billion.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIAN RETAILERS ASSOCIATION