RETAIL TRADE – AUSTRALIA

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

David Jones not looking at riding to Myer’s rescue

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Original article by Eli Greenblat
The Australian – Page: 19 : 23-Feb-18

Department store chain Myer canvassed rival David Jones about what would have been a $A3 billion merger in late 2013, but the potential deal never got off the ground. Myer shares fell a record low of less than $A0.50 on 22 February, amid growing fears about its financial health. Ian Moir, the CEO of David Jones’ parent Woolworths Holdings, said he has no interest in making a bid for Myer. David Jones’ operating profit fell by 29.4 per cent in the December half, and Moir said his focus is on improving its performance.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, WOOLWORTHS HOLDINGS LIMITED

Wesfarmers in push for tax cuts

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Original article by Eli Greenblat
The Australian – Page: 17 & 27 : 22-Feb-18

Wesfarmers has posted a 2017-18 interim net profit of $A212m, which is 86.6 per cent lower than previously. Group revenue rose 2.8 per cent to $A35.9bn, while Bunnings’ revenue in Australia and New Zealand was 10.2 per cent higher at $A6.566bn. Supermarket chain Coles posted revenue of $A19.978bn, which is in line with the previous corresponding period. Wesfarmers CEO Rob Scott has called for corporate tax cuts to ensure that Australian companies are globally competitive, adding that a lower tax rate will ultimately boost wages.

CORPORATES
WESFARMERS LIMITED – ASX WES, BUNNINGS GROUP LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, TARGET AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, OFFICEWORKS SUPERSTORES PTY LTD, COCA-COLA AMATIL LIMITED – ASX CCL, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Big employers pile on the pressure over company tax

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Original article by Simon Benson
The Australian – Page: 4 : 21-Feb-18

The retail industry has urged the Senate crossbenchers to support the Federal Government’s legislation to reduce the company tax rate from 30 per cent to 25 per cent. The Australian Retailers Association’s executive director Russell Zimmerman says the nation’s high corporate tax rate hinders the ability of retailers to hire additional staff and increase wages, while Woolworths CEO Brad Banducci says a lower tax rate would enable the company to increase its investment in its Australian business. The National Retail Association argues that a lower tax rate would result in the creation of more entry-level jobs in the sector.

CORPORATES
AUSTRALIAN RETAILERS ASSOCIATION, WOOLWORTHS GROUP LIMITED – ASX WOW, NATIONAL RETAIL ASSOCIATION LIMITED, BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. DEPT OF THE TREASURY, NICK XENOPHON TEAM, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Super Retail punished for $134m Macpac buy

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Original article by Eli Greenblat
The Australian – Page: 19 : 21-Feb-18

Super Retail Group has reported a 2017-18 interim net profit of $A72.2m, which is three per cent lower than previously and below analysts’ forecasts. Group sales rose by 2.2 per cent to $A1.323bn, although its BCF and Rays businesses underperformed. Meanwhile, Super Retail’s shares closed 14.5 per cent lower on 20 February after the group revealed plans to acquire outdoor adventurewear retailer Macpac for $A134m. Shareholders will receive an interim dividend of $A0.215 per share.

CORPORATES
SUPER RETAIL GROUP LIMITED – ASX SUL, BCF BOATING CAMPING FISHING, RAYS, MACPAC WILDERNESS EQUIPMENT, SUPER CHEAP AUTO, REBEL SPORT LIMITED

Abboud on list as Myer chases chief

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Original article by Bridget Carter
The Australian – Page: 17 & 20 : 21-Feb-18

Department store group Myer Holdings has engaged the services of executive search firm Spencer Stuart to find a successor to dumped CEO Richard Umbers. Spencer Stuart is said to be in the early stages of identifying potential candidates, but former David Jones CEO Paul Zahra is believed to be the leading contender for the role. Other potential candidates are said to include ex-Dick Smith Holdings CEO Nick Abboud and PAS Group CEO Eric Morris. Abboud and Morris have both previously held executive roles at Myer.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, SPENCER STUART AND ASSOCIATES, DAVID JONES LIMITED, DICK SMITH HOLDINGS LIMITED, THE PAS GROUP LIMITED – ASX PGR, ANCHORAGE CAPITAL PARTNERS PTY LTD, WOOLWORTHS GROUP LIMITED – ASX WOW, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, PREMIER INVESTMENTS LIMITED – ASX PMV, BRISCOES, CENTRAL DEPARTMENT STORE GROUP, HOLT RENFREW AND COMPANY LIMITED, FOSCHINI GROUP

Myer in disarray as CEO axed

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Original article by Eli Greenblat
The Australian – Page: 17 & 20 : 15-Feb-18

Listed department store group Myer Holdings has sacked CEO Richard Umbers after issuing its third profit downgrade in less than 12 months. However, executive chairman Garry Hounsell says the group will persist with the "new Myer" turnaround strategy that Umbers launched in 2015, despite the fact that its targets have not been met. Major shareholder Premier Investments has renewed its criticism of Myer in the wake of Umbers’ departure, and argues that the entire board needs to be replaced.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, PREMIER INVESTMENTS LIMITED – ASX PMV, TPG CAPITAL LP

Wesfarmers hit as Bunnings UK bleeds

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Original article by Eli Greenblat
The Australian – Page: 17 & 20 : 6-Feb-18

Perth-based conglomerate Wesfarmers has announced some $A1.3bn worth of writedowns associated with the Target discount department store chain and the fledgling Bunnings operations in the UK. Wesfarmers CEO Rob Scott is optimistic that Bunnings UK can become profitable, but a sweeping review of the business will be undertaken which could potentially result in its sale or closure. Scott has vowed that Wesfarmers will act quickly and decisively on the outcome of the review of its Bunnings UK business.

CORPORATES
WESFARMERS LIMITED – ASX WES, BUNNINGS GROUP LIMITED, TARGET AUSTRALIA PTY LTD, WOOLWORTHS LIQUOR, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, ARGO INVESTMENTS LIMITED – ASX ARG

JB Hi-Fi wins again, but Freedom biggest improver

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Original article by Roy Morgan
Market Research Update – Page: Online : 29-Jan-18

A Roy Morgan Single Source survey shows that JB Hi-Fi is again Australia’s leading electrical and furniture retailer, with a customer satisfaction rating of 90.9% in November 2017. JB Hi-Fi’s customer satisfaction improved 0.5% from a year ago to hold off a fast improving Ikea on 89.6% (up 5.2% from a year ago), and ahead of JB Hi-Fi stablemate The Good Guys on 88.7%. However, the biggest improver over the past year was Freedom, which increased its customer satisfaction rating by 6.4% to 81.8% in November – its highest rating since April 2014. Roy Morgan CEO Michele Levine says JB Hi-Fi is in the box seat to win its fourth Roy Morgan Annual Customer Satisfaction Award at the 2017 Awards in February, adding that between them JB Hi-Fi and The Good Guys have won a total of 8 Annual Roy Morgan Customer Satisfaction Awards since 2011.

CORPORATES
ROY MORGAN LIMITED, JB HI-FI LIMITED – ASX JBH, IKEA TRADING PTY LTD, THE GOOD GUYS, FREEDOM FURNITURE, FANTASTIC FURNITURE, STEINHOFF INTERNATIONAL HOLDINGS LIMITED