RETAIL TRADE – AUSTRALIA

Pay shake-up looms for nation’s retailers

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Original article by Robert Gottliebsen
The Australian – Page: 29 : 6-Sep-17

The majority of large Australian retailers have union-endorsed enterprise agreements, but grocery giant Coles is widely tipped to abandon its disputed workplace agreement in favour of the industrial award system, a move that is likely to be followed by other retailers. Coles employees who are on weekend shifts would receive a pay rise, although staff who only work on weekdays would face a pay cut unless Coles implements a "grandfathering" arrangement for existing employees. About 300,000 employees of large retailers would be affected if the awards system is widely adopted, as well as potentially a further 100,000 fast-food workers.

CORPORATES
COLES SUPERMARKETS AUSTRALIA PTY LTD, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, AUSTRALIAN LABOR PARTY, ACTU, AUSTRALIA. FAIR WORK COMMISSION, ALDI STORES SUPERMARKETS PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, BUNNINGS GROUP LIMITED, WOOLWORTHS LIMITED – ASX WOW, KMART AUSTRALIA LIMITED

Harvey Norman offers buy-back olive branch

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 & 28 : 1-Sep-17

Listed furniture and homewares retailer Harvey Norman has posted a 2016-17 after-tax net profit of $A448.9m, which is 29 per cent higher than previously. The group’s underlying net profit was up 15.7 per cent to $A390.8m, while its franchised stores in Australia recorded 5.4 per cent growth in sales, to $A5.6bn. The company’s final dividend has been reduced, although chairman Gerry Harvey has flagged the possibility of a share buyback. Harvey Norman shares closed 7.5 per cent lower at $A4.08 on 31 August.

CORPORATES
HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, DEUTSCHE BANK AG, OWNERSHIP MATTERS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AMAZON.COM INCORPORATED

Woolies’ abattoir gets the chop

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Original article by Sue Neales
The Australian – Page: 17 & 28 : 31-Aug-17

The imminent closure of the Churchill Abattoir in Queensland has been attributed to factors such as rising cattle prices and a shortage of cattle to process. Some 500 jobs will be lost when the facility at Ipswich closes in late September. The abattoir processes about 20 per cent of the beef that is sold in Woolworths’ stores, forcing the major retailer to seek a new supplier. Woolworths buys about 600,000 head of cattle each year, with between 9,000 and 12,000 being processed each week for sale across its store network.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, CHURCHILL ABATTOIR, JBS DINMORE, TEYS BROS (HOLDINGS) PTY LTD, CARGILL AUSTRALIA LIMITED, OAKEY BEEF, STANBROKE BEEF, THOMAS FOODS, AUSTRALIAN MEAT INDUSTRY COUNCIL

Union deals cut Sunday pay rates

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Original article by Ewin Hannan
The Australian – Page: 1 & 2 : 30-Aug-17

The Shop Distributive & Allied Employees’ Association and United Voice have struck enterprise bargaining agreements with major employers that either abolish Sunday penalty rates or feature rates that are lower than the industry award. The EBAs cover some 410.000 employees of companies such as Bunnings, McDonald’s, KFC, David Jones and Big W. The EBAs of several large hotel chains also do not include Sunday penalty rates. However, all of the EBAs that were analysed by the Department of Employment trade off penalty rates in return for higher base hourly wage rates.

CORPORATES
SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, UNITED VOICE, BUNNINGS GROUP LIMITED, McDONALD’S AUSTRALIA LIMITED, KFC, DAVID JONES LIMITED, BIG W DISCOUNT STORES, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, PIZZA HUT AUSTRALIA, DAN MURPHY’S, THE REJECT SHOP LIMITED – ASX TRS, PROUDS JEWELLERS PTY LTD, IKEA TRADING PTY LTD, PRICELINE PTY LTD, INTER-CONTINENTAL HOTELS GROUP, SHERATON MIRAGE GOLD COAST HOTEL, LANGHAM HOTELS INTERNATIONAL, PARK ROYAL HOLDINGS PTY LTD, AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIAN LABOR PARTY, ACTU, AUSTRALIA. FAIR WORK COMMISSION, GRILL’D PTY LTD, ESTEE LAUDER PTY LTD, SUPER RETAIL GROUP LIMITED – ASX SUL, RACV CLUBS AND RESORTS, UNIVERSITY OF ADELAIDE

Wipeout as SurfStitch into administration

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 25-Aug-17

Online skate and surfwear retailer Surfstitch has appointed FTI Consulting as administrators. Chairman Sam Weiss cited a number of reasons for the decision, including ongoing litigation with major shareholder Crown Financial. The first meeting of Surfstitch’s creditors is due to take place on 5 September. Surfstitch listed on the sharemarket in late 2014 with an issue price of $A1.00, and its shares peaked at $A2.12 in November 2015. However, the stock was trading at just $A0.068 when it was suspended in May 2017.

CORPORATES
SURFSTITCH GROUP LIMITED – ASX SRF, FTI CONSULTING PTY LTD, CROWN FINANCIAL PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, SURFSTITCH AUSTRALIA, STAB, SURFDOME, SWELL, MAGICSEAWEED, 333 CAPITAL PTY LTD, GADENS LAWYERS, QUINN EMANUEL URQUHART AND SULLIVAN LP, AMAZON PRIME, SURF HARDWARE INTERNATIONAL PTY LTD, GARAGE ENTERTAINMENT, DISTRICT COURT OF QUEENSLAND

Price check: food and groceries

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 25-Aug-17

Richard Aedy, the host of ABC Radio National’s "The Money" program, examines the challenges facing Australian supermarkets and the way the sector is responding to changing consumer trends. His guests are Roy Morgan Research CEO Michele Levine, Small Business & Family Enterprise Ombudsman Kate Carnell, SupermarketGuru.com’s Phil Lempert, CHOICE lifestyle editor Kate Brown and data scientist Cathy O’Neil. They discuss issues such as the growth of Aldi in Australia, supermarkets’ growing use of private-label products, the entry of Amazon to the local market and the future of shopping.

CORPORATES
RADIO NATIONAL, AUSTRALIAN BROADCASTING CORPORATION, ROY MORGAN RESEARCH LIMITED, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, SUPERMARKETGURU.COM, CHOICE

Woolies back in the retail race

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Original article by Eli Greenblat
The Australian – Page: 17 & 20 : 24-Aug-17

Retail giant Woolworths has posted a 2016-17 net profit of $A1.533bn, following an impairment-marred loss of $A1.234bn for 2016-17. Net profit from continuing operations was down 3.6 per cent at $A1.422bn, but revenue was 3.7 per cent higher at $A55.47bn. Woolworths’ core supermarkets division recorded 4.5 per cent growth in food sales, to $A36.37bn, while the struggling Big W business recorded an EBIT loss of $A150.5m and a 5.6 per cent decline in sales.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, WOOLWORTHS SUPERMARKETS, BIG W DISCOUNT STORES, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, EZIBUY, LOWE’S COMPANIES INCORPORATED, COLES SUPERMARKETS AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, WESFARMERS LIMITED – ASX WES, VERTIUM ASSET MANAGEMENT

Costco to float online and watch pennies fly

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 23-Aug-17

Costco will boast nine stores in Australia when its third store in Sydney opens in late August. The discount retailer intends to compete directly with Amazon.com in the local market, with plans to expand into online retailing within the next 18 months. Costco Australia MD Patrick Noone says the online store will enable the company to target consumers in regional and rural areas who do not have ready access to its warehouse-style outlets. Online sales now comprises 5-6 per cent of Costco’s overall sales in the US.

CORPORATES
COSTCO WHOLESALE AUSTRALIA PTY LTD, COSTCO WHOLESALE CORPORATION, AMAZON.COM INCORPORATED, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, METCASH LIMITED – ASX MTS, BUNNINGS GROUP LIMITED, OFFICEWORKS SUPERSTORES PTY LTD, JB HI-FI LIMITED – ASX JBH, SUPER RETAIL GROUP LIMITED – ASX SUL, MORGAN STANLEY AUSTRALIA LIMITED

Retailer Godfreys sucks it up and goes back to basics

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Original article by Simon Evans
The Australian Financial Review – Page: 26 : 18-Aug-17

Vacuum cleaner retailer Godfreys Group has posted a 2016-17 net loss of $A18.4 million. Revenue declined by 2.9 per cent to $A174.1 million, while 22 of its company stores were converted to franchise outlets during the year. Analysts see Godfreys falling behind stores like JB Hi-Fi and Harvey Norman in the $A1.3 billion Australian vacuum cleaner sector, while the pending arrival of Amazon presents another challenge for the group.

CORPORATES
GODFREYS GROUP LIMITED – ASX GFY, JB HI-FI LIMITED – ASX JBH, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, AMAZON.COM INCORPORATED, WERTHEIM SCHRODER AND COMPANY, HOOVER (AUSTRALIA) PTY LTD, DYSON INDUSTRIES LIMITED

Amazon will benefit us: Brambles chair

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Original article by Lisa Allen, Eli Greenblat
The Australian – Page: 19 : 14-Aug-17

Brambles chairman Stephen Johns says that although Amazon will be a "disruptive force" for Australian retailers, its entry into the local market could present an opportunity for the logistics group. He adds that the AmazonFresh business in particular should benefit Brambles’ CHEP and IFCO pallet operations. Morgan Stanley says department stores are likely to be hardest hit by Amazon’s arrival in Australia.

CORPORATES
BRAMBLES LIMITED – ASX BXB, AMAZON.COM INCORPORATED, AMAZONFRESH, CHEP AUSTRALIA, IFFCO GROUP OF COMPANIES, MORGAN STANLEY AUSTRALIA LIMITED, WESFARMERS LIMITED – ASX WES, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, JB HI-FI LIMITED – ASX JBH, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD