RETAIL TRADE – AUSTRALIA

Woolies’ warning to suppliers

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 24-Nov-17

Woolworths chairman Gordon Cairns has urged food and grocery suppliers to think carefully before putting their goods for sale on Amazon. Speaking at its AGM on 23 November, he said retailers such as Woolworths might find that they could not compete with Amazon’s prices, and so might decide to start selling more of their private label goods in preference to brand-name products. CEO Brad Banducci said that Uber Eats could be as a big a threat to Woolworths’ business as Amazon over the next year.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, AMAZON.COM INCORPORATED, UBER AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, BP AUSTRALIA LIMITED

Amazon’s retail invasion begins

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Original article by Sue Mitchell, James Thomson
The Australian Financial Review – Page: 17 : 23-Nov-17

Australian retailing is set for its biggest shake-up in decades on 23 November, when Amazon "soft-launches" its electronic commerce operations, with a full launch expected on 24 November. Ben Gilbert from UBS says Amazon’s arrival in Australia is likely to have a detrimental impact on the profit margins of local retailers, as they will have to invest more in delivery and service, as well as lowering their prices. However, he believes investors have perhaps over-reacted to Amazon’s pending arrival in terms of how much they have pushed down the share price of local retailers.

CORPORATES
AMAZON.COM INCORPORATED, UBS HOLDINGS PTY LTD, JB HI-FI LIMITED – ASX JBH, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, GREENCROSS LIMITED – ASX GXL, SUPER RETAIL GROUP LIMITED – ASX SUL, DYSON APPLIANCES LIMITED, BREVILLE GROUP LIMITED – ASX BRG

Wesfarmers dismisses Bunnings spin-off talk

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 : 22-Nov-17

New Wesfarmers CEO Rob Scott says he has no plans to spin off Bunnings, the home improvement chain regarded as its most important asset. Scott says while he has people telling him he should spin off Bunnings, he gets just as many people telling him that Wesfarmers should retain it. Bunnings accounts for just 30 per cent of Wesfarmers’ group earnings, but is reckoned to be worth $A23 billion, almost half of Wesfarmers’ overall market value of $A48 billion. Scott concedes Bunnings’ expansion into the UK has not been as successful to date as was hoped, but he is confident that UK consumers will eventually embrace its format.

CORPORATES
WESFARMERS LIMITED – ASX WES, BUNNINGS GROUP LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, OFFICEWORKS SUPERSTORES PTY LTD, DEUTSCHE BANK AG, AIRLIE FUNDS MANAGEMENT PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD

Myer director hits back at Lew over experience

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Original article by Eli Greenblat
The Australian – Page: 19 : 21-Nov-17

Myer director Ian Cornell believes major shareholder Solomon Lew is wrong to claim that the Myer board lacks retail experience. Lew, whose Premier Investments owns 10.8 per cent of the department store chain’s shares, has been increasingly critical of the Myer board in recent months. Lew’s contention that it does not have enough retail experience has been one of his criticisms. Cornell’s retail experience includes over 20 years with Woolworths, and he is also on the board of retailer Baby Bunting. Myer will hold its AGM on 24 November, and Lew has promised to oppose all resolutions

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, PREMIER INVESTMENTS LIMITED – ASX PMV, WOOLWORTHS LIMITED – ASX WOW, BABY BUNTING GROUP LIMITED – ASX BBN, WESTFIELD CORPORATION – ASX WFD, BABY BUNTING GROUP LIMITED – ASX BBN, FRANKLINS LIMITED

Amazon tells of $700m Australia push

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 30 : 14-Nov-17

US e-commerce giant will establish an Australian presence "very soon", according to country manager Rocco Braeuniger. He says both the Amazon Marketplace and its own retail platform will be launched in Australia, with the range of product categories it offers to be progressively expanded. Braeuniger has stressed that customer service will be a focus for Amazon, which intends to invest $A700m in its Australian business over five years.

CORPORATES
AMAZON.COM INCORPORATED, HIP CUB, KOALA SAFE PTY LTD, GOBE PTY LTD

Shopping centres will survive peak Amazon

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Original article by Vesna Poljak
The Australian Financial Review – Page: 15 & 24 : 13-Nov-17

The Australian real estate investment trust sector has responded more proactively to the threat posed to retail trade by Amazon than many have given it credit for, according to Pete Davidson of BT Investment Management. REIT stocks currently favoured by BTIM include Westfield, Mirvac and Charter Hall, along with Arena and Folkestone, which both have interests in childcare centres. Other stocks that BTIM like include Precinct Properties and Vital Healthcare.

CORPORATES
AMAZON.COM INCORPORATED, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, WESTFIELD CORPORATION – ASX WFD, MIRVAC GROUP – ASX MGR, CHARTER HALL GROUP – ASX CHC, ARENA REIT – ASX ARF, FOLKESTONE LIMITED – ASX FLK, PRECINCT PROPERTIES, VITAL HEALTHCARE PROPERTY TRUST, MYER HOLDINGS LIMITED – ASX MYR, SCENTRE GROUP – ASX SCG, MITCHELL MONTAGU

Millers, Lowes and Noni-B lead for customer satisfaction

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Original article by
Market Research Update – Page: Online : 6-Nov-17

A Roy Morgan Single Source survey has found that Millers had the highest level of customer satisfaction level of any clothing store in September, at 89.7 per cent. It was followed by Lowes, Noni-B, Rockmans and Jeanswest. Millers’ customer satisfaction was up by 2.9 per cent over the past year, while Lowes and Noni B also increased their level of customer satisfaction. Roy Morgan Research CEO Michele Levine notes the clothing store sector is one of the most competitive in Australian retail, so good customer service is all important.

CORPORATES
SPECIALTY FASHION GROUP LIMITED – ASX SFH, LOWES MENSWEAR, NONI B LIMITED – ASX NBL, ROCKMANS STORES LIMITED, JEANSWEST CORPORATION PTY LTD, HENNES OCH MAURITZ AB, ZARA, DEBENHAMS RETAIL PLC, AMAZON.COM INCORPORATED, UNIQLO AUSTRALIA PTY LTD

Amazon threat and opportunity

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Original article by Simon Evans, Michael Bailey
The Australian Financial Review – Page: 1 & 12 : 2-Nov-17

US-based e-commerce giant Amazon is widely tipped to enter the Australian market before the end of 2017. Delegates at a retail summit on 1 November were told that the arrival of a new competitor will be good for Australian retailers, with Launa Inman arguing that it will force them to improve their online offerings. Small Business & Family Enterprise Ombudsman Kate Carnell says Amazon will face close scrutiny to ensure that its contracts are fair, while Australian Retailers Association executive director Russell Zimmerman stressed the need to ensure that Amazon complies with Australia’s penalty rates regime.

CORPORATES
AMAZON.COM INCORPORATED, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, AUSTRALIAN RETAILERS ASSOCIATION, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, DELOITTE ACCESS ECONOMICS PTY LTD, DELOITTE TOUCHE TOHMATSU LIMITED, BILLABONG INTERNATIONAL LIMITED – ASX BBG, TARGET AUSTRALIA PTY LTD, THEICONIC.COM.AU

‘Enormously damaging’: Hounsell strikes back at Lew

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 21 : 31-Oct-17

Gary Hounsell has urged Myer shareholders to elect him and two other independent directors to its board at its AGM on 24 November. The election of Hounsell, who is Myer’s chairman-designate, and the other two directors is opposed by Solomon Lew’s Premier Investments, which is Myer’s largest shareholder. Lew has requested three seats on the Myer board, but Hounsell says this would amount to him controlling 43 per cent of non-executive director roles. Hounsell has told Myer shareholders that Lew appears to want to gain control of the company without them benefiting from any takeover premium.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, PREMIER INVESTMENTS LIMITED – ASX PMV, DOTTI, PORTMANS PTY LTD, PETER ALEXANDER SLEEPWEAR PTY LTD, WOOLWORTHS LIMITED – ASX WOW, JUST JEANS PTY LTD, JAY JAY’S JEANS WAREHOUSE PTY LTD, JACQUELINE EVE GROUP, SMIGGLE PTY LTD

Bunnings ‘sizzling’ with high customer satisfaction

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 30-Oct-17

A Roy Morgan Single Source survey has found that Bunnings Warehouse has pipped rival Home Timber & Hardware to be Australia’s leading Hardware Store in September 2017 with a customer satisfaction rating of 89.0%, up 0.1% from a year ago. Home Timber & Hardware has a customer satisfaction rating of 88.6%, virtually unchanged from a year ago, and enough to beat out Mitre 10 in third with a customer satisfaction rating of 86.9%. Rounding out the Hardware Store "Big 4" is True Value Hardware with a customer satisfaction rating of 76.3%, down slightly on a year ago. Roy Morgan Research CEO Michele Levine says Home Timber & Hardware has performed consistently well over the past few years, winning the Annual Roy Morgan Hardware Store Customer Satisfaction Award in four out of the last five years, although the 2017 Annual Award looks set to go down to the wire with Bunnings aiming for its first victory in the category since 2011.

CORPORATES
ROY MORGAN RESEARCH LIMITED, BUNNINGS GROUP LIMITED, HOME TIMBER AND HARDWARE, MITRE 10 LIMITED, TRUE VALUE HARDWARE LIMITED