RETAIL TRADE – AUSTRALIA

The ‘retailtainment’ effect: Aussies made 90 million more trips to the shops last financial year!

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 5-Dec-16

In the 12 months since Roy Morgan last focused on the retail industry in a State of the Nation report, there have been some striking changes in the way Australians shop, both in terms of their motivations and their behaviour. Perhaps the most surprising of these is the resurgence in retail visitation. The latest retail-themed State of the Nation reveals that Australians made 90 million more trips to bricks-and-mortar stores in the 2015/2016 financial year than they did in the year before that. For several years, Australians have been making fewer visits to retail outlets, as increasing numbers turned to online shopping for its convenience and (often) cheaper prices. But while bricks-and-mortar visitation is still well down on five years ago (by some 100 million trips, despite our growing population), it has shown signs of a turnaround more recently. Over the last financial year, Aussies made a combined 1.43 billion trips to department stores and discount stores, hardware stores and homeware stores, clothing stores, music stores and newsagents: an increase of 90 million trips on the 2014/2015 financial year. This increased customer traffic is at least partly due to the growing ‘retailtainment’ trend, where stores are working to enhance their customers’ shopping experience with an entertainment element – an on-site cafe or an in-store DJ for example – to lure them away from the computer screen and into a physical retail space.

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ROY MORGAN RESEARCH LIMITED

Penalty rate cuts will not save jobs: Citi

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Original article by Anna Patty
The Age – Page: 23 : 1-Dec-16

Per Capita’s Tim Lyons says a report from Citigroup shows that retailers would not hire additional staff if penalty rates are reduced. The report concludes that retailers are likely to pass the benefits of lower penalty rates on to their shareholders in the form of higher returns or by cutting prices for consumers. It also notes that the enterprise agreements of many listed retailers have expired, and suggests that they are not renewing the agreements due to expectations of a reduction in penalty rates.

CORPORATES
CITIGROUP PTY LTD, PER CAPITA AUSTRALIA LIMITED, ACTU, MYER HOLDINGS LIMITED – ASX MYR, JB HI-FI LIMITED – ASX JBH, WESFARMERS LIMITED – ASX WES, BUNNINGS GROUP LIMITED, BIG W DISCOUNT STORES, COLES SUPERMARKETS AUSTRALIA PTY LTD, JUST GROUP LIMITED, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, NATIONAL RETAIL ASSOCIATION LIMITED, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, THE AUSTRALIAN INDUSTRY GROUP

Penalty rate cuts will not save jobs: Citi

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Original article by Anna Patty
The Age – Page: 23 : 1-Dec-16

Per Capita’s Tim Lyons says a report from Citigroup shows that retailers would not hire additional staff if penalty rates are reduced. The report concludes that retailers are likely to pass the benefits of lower penalty rates on to their shareholders in the form of higher returns or by cutting prices for consumers. It also notes that the enterprise agreements of many listed retailers have expired, and suggests that they are not renewing the agreements due to expectations of a reduction in penalty rates.

CORPORATES
CITIGROUP PTY LTD, PER CAPITA AUSTRALIA LIMITED, ACTU, MYER HOLDINGS LIMITED – ASX MYR, JB HI-FI LIMITED – ASX JBH, WESFARMERS LIMITED – ASX WES, BUNNINGS GROUP LIMITED, BIG W DISCOUNT STORES, COLES SUPERMARKETS AUSTRALIA PTY LTD, JUST GROUP LIMITED, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, NATIONAL RETAIL ASSOCIATION LIMITED, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, THE AUSTRALIAN INDUSTRY GROUP

What’s in store for The Store? Fairfax readers spend big in the $2.6billion online retail clothing market

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 29-Nov-16

As detailed in Roy Morgan’s latest State of the Nation report, Australia’s online shopping market is now worth an estimated $41.3billion per year. In the 12 months to September 2016, the Cross-Platform Audiences for Fairfax’s three leading mastheads were all more likely than average to shop online – and spent more when they did. The result is that Fairfax readers contribute far more than their fair share to the online shopping market. Some 21% of Australians (aged 14+) read the "Sydney Morning Herald" in print and digital, but this audience contributes 33% of all money spent online. Likewise, 15% read "The Age", but 20% of online shopping dollars come from them. Meanwhile, 7% read the "Australian Financial Review", but their value to the online shopping market is almost double, at 13%.

CORPORATES
ROY MORGAN RESEARCH LIMITED, FAIRFAX MEDIA LIMITED – ASX FXJ, THE STORE

State of the Nation 26: Australian Retail Industry

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 25-Nov-16

Roy Morgan Research CEO Michele Levine has presented the latest State of the Nation Report, with a special Spotlight on Australian Retail. The State of the Nation Report looks at the "invasion" of overseas retailers like H&M, ALDI, Costco, Zara – and in 2017 online giant Amazon, the battle for the online shopping dollar across a range of categories, the vital importance to retailers of properly identifying their customers and the desire of many consumers to have an increasingly "frictionless" retail experience. Levine says that although overall spending on discretionary commodities declined slightly, by 2%, over the past year, retailers are in fact more confident about the future now than they were a year ago – although it appears this very confidence is helping to attract more and more international retailers to "attack" what they perceive as the "rich pickings" available in Australia.

CORPORATES
ROY MORGAN RESEARCH LIMITED, HENNES OCH MAURITZ AB, ALDI EINKAUF GMBH & CO OHG, COSTCO WHOLESALE CORPORATION, ZARA, AMAZON.COM INCORPORATED, UNIQLO COMPANY LIMITED, BUNNINGS GROUP LIMITED, DELIVEROO, FOODORA, UBEREATS, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, DICK SMITH HOLDINGS LIMITED, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

‘Experiences’ over ‘things’: Aussies spending more on leisure and entertainment, but less on discretionary commodities

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 25-Nov-16

A Roy Morgan Single Source survey has found that Australians aged 14+ spent almost $A105bn on things in the year to June 2016. Australians purchased around 85.5 million "discretionary commodities" between them, the recently launched State of the Nation Retail Spotlight from Roy Morgan Research reveals. Some 54.7 per cent of Australians bought at least one item of clothing in any given four weeks during 2015-16, ahead of Hardware/Home DIY/Plant and Garden products (22.4%), and Footwear (21.7%). However, compared with the 2014/2015 financial year, expenditure on discretionary commodities is down 2.0%, while expenditure on leisure and entertainment has risen by $A10bn to $A137bn year-on-year.

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ROY MORGAN RESEARCH LIMITED

Fat margin retailers must fear Amazon

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 24-Nov-16

Roy Morgan Research CEO Michele Levine says Australian retailers with high margins, a large market share and growing online sales will be most vulnerable if Amazon enters the domestic market. Levine, who has presented Roy Morgan’s latest "State of the Nation" report on the retail sector, adds that Aldi and other international grocery chains with physical stores are a greater risk to Coles and Woolworths in the near-term, as most people still do not buy groceries online. Likewise, the low margins of consumer electronics retailers such as JB Hi-Fi means they are less vulnerable to competition from Amazon.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AMAZON.COM INCORPORATED, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, LIDL GMBH & CO KG, JB HI-FI LIMITED – ASX JBH, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, BABY BUNTING GROUP LIMITED – ASX BBN, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, CITIGROUP PTY LTD

Image conscious: how Australians view different department stores

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 24-Nov-16

A Roy Morgan Single Source survey has found that 22.6% of Australians aged 14+ (3.6 million people) buy something at Kmart in an average four-week period. The survey, which was carried out in the year to June 2016, also shows that 19.5% of Australians (3.1 million) make a purchase at Target and 18.9% (3 million) shop at Big W in an average four weeks. One common denominator shared by the three stores is the perception that each "has a wide choice of products". Almost 42% of Australians think Target fits this description, 45.1% feel the same way about Kmart and 49.2% think Big W has a wide choice of products. Meanwhile, 10.0% of Australians (or 1.6 million people) making a purchase at Myer in an average four weeks and 4.7% (760,000) buying something at David Jones. The most commonly held perception of these stores is less about low prices and more about quality, which evidently impacts on customer volume.

CORPORATES
ROY MORGAN RESEARCH LIMITED, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED

Pumpkin Patch’s demise: a sign of the times

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 3-Nov-16

A Roy Morgan Single Source survey has found that 128,000 Australians aged 14+ made at least one purchase at children’s clothing chain Pumpkin Patch in an average four weeks during the year to June 2016, compared with 220,000 in the year to June 2014. Its customer numbers had consistently eclipsed those shopping at Cotton On Kids until the last year, when 133,000 Australians shopped at Cotton On Kids in an average four weeks. Meanwhile, the number of people shopping for children’s clothes at Kmart in an average four weeks has risen from 559,000 to 712,000 since 2014. Pumpkin Patch is not the only kids’-wear retailer to have lost customers in the past few years: Target, Big W and Best & Less have all lost ground.

CORPORATES
ROY MORGAN RESEARCH LIMITED, PUMPKIN PATCH (AUSTRALIA) PTY LTD, COTTON ON KIDS PTY LTD, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, BEST AND LESS PTY LTD, HENNES OCH MAURITZ AB, ZARA, UNIQLO AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD

Aldi sees plenty of growth to come

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Original article by Eli Greenblat
The Australian – Page: 19 & 20 : 2-Nov-16

The Australian market share of German supermarket chain Aldi is currently less than 10 per cent, although local CEO Tom Daunt believes that the group can lift this to 14-15 per cent within the next several years. He also concedes that growth in store numbers across the eastern states will slow in coming years. Daunt stresses that Aldi will maintain its policy of having the lowest grocery prices, while the group intends to refurbish all of its existing east coast stores in order to be competitive in the fresh food segment of the grocery market.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW