RETAIL TRADE – AUSTRALIA

Rocky start to Lew’s British adventure

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Original article by Eli Greenblat
The Australian – Page: 13 & 16 : 17-Dec-24

Internal documents have revealed that Solomn Lew’s Premier Investments is having problems in both the UK and Australia. Sales from the first three UK stores of its sleepwear brand Peter Alexander are trading at 61.6 per cent below budget, while sales for its Smiggle brand in the UK between August and last weekend were down 12.2 per cent on the same period last year. Premier Investments’ other retail and fashion brands in Australia are also seeing negative sales growth when compared to 2023, with those brands including Jacqui E and Just Jeans.

CORPORATES
PREMIER INVESTMENTS LIMITED – ASX PMV, PETER ALEXANDER SLEEPWEAR PTY LTD, SMIGGLE PTY LTD, JACQUI E PTY LTD, JUST JEANS PTY LTD

$140m Woolies wipe-out boosts Coles

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Original article by Eli Greenblat
The Australian – Page: 15 : 10-Dec-24

Woolworths has yet to determine the full cost of the industrial action at four of its distribution centres. The strike action was initially estimated to have cost it about $50m in lost sales, but this is expected to rise to around $140m. The resolution of the industrial dispute will result in a pay rise of 11 per cent over three years for the warehouse staff; the United Workers Union had initially sought an increase of 25 per cent. Meanwhile, rival Coles has enjoyed a sales boost due to the strike action, although it has had to put on extra staff at its supermarkets and warehouses to meet the increased demand.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW, UNITED WORKERS UNION, COLES GROUP LIMITED – ASX COL

Bunnings, Kmart and Samsung are Most Trusted Brands in Retail and Consumer Products for 2024

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Original article by Roy Morgan
Market Research Update – Page: Online : 9-Dec-24

Roy Morgan has presented the annual Roy Morgan Trusted Brand Awards for Retail and Consumer Products. There were over 90 brands in the running for the awards, across the five categories of Supermarkets, Retail, Department and Discount Department Stores, Consumer Products, and Technology brands. Aldi has claimed the title of the ‘Most Trusted Supermarket Brand’ for 2024. The broader Retail category was again topped by home hardware brand Bunnings, with a third consecutive victory as the ‘Most Trusted Retail Brand’ in Australia. The ‘Most Trusted Brand in Department & Discount Department Stores’ has been won by Kmart for a third year in a row. The winner of the ‘Most Trusted Consumer Products Brand’ is South Korea-based Samsung, which has recorded its third straight victory in the category, while Apple is the ‘Most Trusted Technology Brand’ for a third consecutive year.

CORPORATES
ROY MORGAN LIMITED, ALDI STORES SUPERMARKETS PTY LTD, BUNNINGS GROUP LIMITED, KMART AUSTRALIA LIMITED, SAMSUNG CORPORATION, APPLE PTY LTD

Woolworths reaches enterprise agreement with striking union workers

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Original article by Duncan Evans, Liam Beatty
Herald Sun – Page: Online : 8-Dec-24

Woolworths has begun restocking its supermarkets’ shelves after securing a new enterprise agreement for employees at four distribution centres. The deal with the United Workers Union and the Shop, Distributive and Allied Employees’ Association has ended a 17-day strike that is estimated to have cost the grocery giant about $50m in lost sales. The SDA has advised that the warehouse workers will receive a pay rise of 12.84 per cent over three years, a $1000 up-front cash payment, a $500 up-front gift card and a $500 gift card for the next two years. Weekend penalty rates for shift workers will also be increased, while Woolworths has agreed to concessions regarding its controversial performance management framework.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW, UNITED WORKERS UNION, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION

ALP steps into Woolies dispute

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Original article by Ewin Hannan, Brendan Kearns
The Australian – Page: 5 : 4-Dec-24

Woolworths estimates that the strike action by distribution centre workers has cost it about $50m in lost food sales to date. Meanwhile, Workplace Relations Minister Murray Watt and staff from his department have held talks with Woolworths executives and United Workers Union officials in a bid to resolve the impasse that has led to empty shelves at Woolworths stores in Victoria and southern NSW. The 12-day strike has also affected supplies at liquor stores Dan Murphy’s and BWS, which are owned by Woolworths spin-off Endeavour Group.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW, AUSTRALIA. DEPT OF EMPLOYMENT AND WORKPLACE RELATIONS, UNITED WORKERS UNION, ENDEAVOUR GROUP LIMITED – ASX EDV, DAN MURPHY’S, BWS – BEER WINE SPIRITS

Myer buys big brands from Lew’s Premier

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Original article by Carrie LaFrenz
The Australian Financial Review – Page: 13 : 30-Oct-24

Premier Investments will hold a 51.5 per cent stake in Myer Holdings if a deal to sell its Apparel Brands division to the department store group is approved by shareholders. Premier’s chairman Solomon Lew will personally control about 27 per cent of Myer and become a director of the iconic retailer. The deal includes brands such as Just Jeans, Jay Jays, Dotti and Portmans; Premier will then focus on its Smiggle and Peter Alexander brands. Myer’s executive chair Olivia Worth says the deal will allow the Myer One customer loyalty program to target a younger demographic.

CORPORATES
PREMIER INVESTMENTS LIMITED – ASX PMV, MYER HOLDINGS LIMITED – ASX MYR, APPAREL BRANDS, JUST JEANS PTY LTD, JAY JAY’S JEANS WAREHOUSE PTY LTD, DOTTI, PORTMANS PTY LTD, SMIGGLE PTY LTD, PETER ALEXANDER SLEEPWEAR PTY LTD

Aldi the most trust supermarket as Coles, Woolies fend off fake discount claims

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Original article by Danielle Long
The Australian – Page: 17 : 11-Oct-24

Research from Roy Morgan shows that Aldi is Australia’s most trusted supermarket brand in 2024, having risen from third place in 2023. Roy Morgan CEO Michele Levine says Aldi’s rise in the firm’s Trusted Brand Awards reflects factors such as the increased distrust of grocery giants Woolworths and Coles in the wake of recent scandals such as allegations of price gouging; Levine adds that consumers have responded positively to Aldi’s competitive pricing and commitment to quality. Woolworths and Coles are now the fourth and fifth most distrusted brands, according to Roy Morgan.

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

Albanese targets grocery shrinkflation in battle to curb cost-of-living poll risk

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Original article by Tom McIlroy
The Australian Financial Review – Page: 5 : 3-Oct-24

The federal government has indicated that it will review the Unit Pricing Code of Conduct, and potentially expand its coverage to include more retailers. The government has been targeting supermarket pricing ahead of the federal election, and Prime Minister Anthony Albanese says that addressing the problem of ‘shrinkflation’ is part of its strategy to "get a better deal" for consumers. It is a common practice for manufacturers of packaged food and groceries to downsize their products while leaving the prices unchanged or even increasing them.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Bunnings boss rejects gouging claim

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Original article by James Thomson, Tom McIlroy
The Australian Financial Review – Page: 16 : 17-Sep-24

National Party senator Ross Cadell has reiterated his view that the pricing policies of so-called ‘big-box’ retailers such as Bunnings should be scrutinised by a parliamentary inquiry. However, Bunnings MD Mike Schneider has responded to suggestions that the hardware giant may have engaged in price gouging and abused its market power. He notes the company’s long-running ‘lowest prices are just the beginning’ advertising slogan, arguing that Bunnings puts a lot of work and capital into ensuring that it lives up to this claim.

CORPORATES
BUNNINGS GROUP LIMITED, NATIONAL PARTY OF AUSTRALIA

Coles outdoes Woolworths on several fronts

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Original article by Carrie LaFrenz
The Australian Financial Review – Page: 15 : 3-Sep-24

The latest financial results from grocery giants Coles and Woolworths show that the former is outperforming its larger rival on several key metrics. Coles is recording faster growth in sales, due to factors such as store promotions, the perception among consumers that it is a cheaper brand, and the ease of redeeming loyalty points. Coles is also narrowing the gap with Woolworths regarding gross margins, after focusing on stock losses and managing costs. Meanwhile, the share price of Coles has risen by nearly 20 per cent over the last 12 months, while Woolworths has shed 5.4 per cent.

CORPORATES
COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW