RETAIL TRADE – AUSTRALIA

Woolies’ ‘plan B’ on Masters exit

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Original article by Ben Butler, Ben Wilmot
The Australian – Page: 21 : 20-Sep-16

Documents filed in the Federal Court outline the strategies that Woolworths allegedly devised in order to withdraw from its Masters Home Improvement venture with Lowe’s. The US company is seeking to wind up the Masters joint venture company, Hydrox Holdings. Lowe’s claims that amongst other things, Woolworths made plans to terminate the joint venture agreement and sell Hydrox’s assets if the Lowe’s nominees on the Hydrox board did not agree to the sale of the joint venture company’s assets.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, LOWE’S COMPANIES INCORPORATED, HYDROX HOLDINGS PTY LTD, FEDERAL COURT OF AUSTRALIA, HOME TIMBER AND HARDWARE, KORDA MENTHA AND COLLEAGUES PTY LTD, CITIGROUP PTY LTD

JB Hi-Fi bets big on Good Guys

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Original article by Eli Greenblat
The Australian – Page: 19 & 22 : 14-Sep-16

JB Hi-Fi will finance the acquisition of The Good Guys via a capital raising and a $A450m debt facility. The listed consumer electronics and home entertainment group will raise $A394m from investors, with the new stock to be issued at $A26.20 apiece. JB Hi-Fi anticipates annual cost savings of between $A15m and $A20m as a result of the $A870m acquisition of The Good Guys. The deal will increase JB Hi-Fi’s sales to $A6bn a year and lift its share of the consumer electronics and household appliances market.

CORPORATES
JB HI-FI LIMITED – ASX JBH, THE GOOD GUYS, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, OPHIR ASSET MANAGEMENT PTY LTD, ALPHINITY INVESTMENT MANAGEMENT PTY LTD

Play time: where Aussies buy their toys and games

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 8-Sep-16

A Roy Morgan Single Source survey has found that 2.6 million Australians aged 14+ buy toys and/or games in an average four-week period. The survey, which was carried out in the year to June 2016, also shows that 612,000 people buy toys and/or games from EB Games in an average four weeks, ahead of Kmart (412,000), Big W (349,000) and Target (297,000). Meanwhile, 801,000 Australians buy toys and/or games via the internet, either from an online-only business or the e-commerce channel of a bricks-and-mortar store.

CORPORATES
ROY MORGAN RESEARCH LIMITED, EB GAMES, KMART AUSTRALIA LIMITED, BIG W DISCOUNT STORES, TARGET AUSTRALIA PTY LTD, JB HI-FI LIMITED – ASX JBH, TOYS ‘R’ US (AUSTRALIA) PTY LTD, EBAY AUSTRALIA AND NEW ZEALAND PTY LTD

Stellar Harvey Norman saves best for last

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 1-Sep-16

Australian-listed retailer Harvey Norman has reported a 30 per cent increase in net profit to $A348.6 million for 2015-16. EBIT rose 27 per cent to $A522.5 million. Chairman Gerry Harvey said on 31 August 2016 that the company was ‘flush with cash’ and could afford to be generous to shareholders. Harvey Norman’s final dividend was raised from $A0.11 to $A0.17 a share, payable on 1 December.

CORPORATES
HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, DICK SMITH HOLDINGS LIMITED

Autobarn accelerates its way to customer satisfaction success

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 1-Sep-16

Roy Morgan Research has announced the July 2016 winners of its monthly Customer Satisfaction Awards in Australia. Autobarn won the Customer Satisfaction Award in the category of Auto Stores by satisfying 88 per cent of its customers, followed by Supercheap Auto with 87 per cent and Repco with 82 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUTOBARN PTY LTD, SUPER CHEAP AUTO, REPCO LIMITED

SurfStitch out of trough: Sonand

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Original article by Eli Greenblat
The Australian – Page: 23 : 31-Aug-16

SurfStitch reported a loss of more than $A155 million and an underlying EBITDA loss of $A18.8 million for 2015-16. The results of the Australian-listed online retailer included $A99.3 million in impairments to goodwill and aged inventory. Investors abandoned the company, with shares falling $A0.125, or 54.3 per cent, to $A0.105 on 31 August 2016.

CORPORATES
SURFSTITCH GROUP LIMITED – ASX SRF

Coles deal forces union rates retreat

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Original article by Ewin Hannan
The Australian – Page: 1 & 6 : 30-Aug-16

The Shop, Distributive & Allied Employees’ Association has reviewed nearly 100 enterprise agreements in response to the Fair Work Commission’s decision to strike down its pay deal with Coles. The SDA’s national secretary, Gerard Dwyer, has warned that the ruling means that the union will have to cease the long-standing practice of trading off penalty rates in return for gaining higher base rates of pay for its members. The FWC ruled that the Coles enterprise agreement breached the "no disadvantage" test.

CORPORATES
SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, COLES SUPERMARKETS AUSTRALIA PTY LTD, AUSTRALIA. FAIR WORK COMMISSION

Woolies chief sees green shoots

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Original article by Eli Greenblat
The Australian – Page: 19 & 23 : 26-Aug-16

Australian-listed retailer Woolworths has posted a 2015-16 net loss of $A1.23bn, while revenue was down 1.2 per cent at $A58.08bn. The result was marred by write-downs and impairment charges exceeding $A4bn. CEO Brad Banducci says further reducing grocery prices will continue to be a priority in 2016-17. He adds that there was 0.3 per cent growth in like-for-like store sales during the first eight weeks of the financial year. Shareholders will receive a final dividend of $A0.33 per share.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, ENDEAVOUR DRINKS GROUP, DAN MURPHY’S, AUSTRALIAN LEISURE AND HOSPITALITY GROUP LIMITED

Woolies nets $1.5b as it exits from hardware

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Original article by James Thomson, Sarah Thompson, John Stensholt, Anthony Macdonald
The Australian Financial Review – Page: 15 & 22 : 25-Aug-16

Australian-listed retailer Woolworths has advised that its Masters Home Improvement stores will be closed by mid-December 2016. Woolworths will sell the Home Timber & Hardware business to Mitre 10 owner Metcash for $A165m. Meanwhile, the Home Consortium will pay $A725m for 61 Masters stores and 21 development sites, with plans to convert the stores into large-format retail centres with multiple tenants. In a separate deal, the Australian arm of US auction house Great American Group will pay about $A500m for the Masters hardware inventory.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, HOME TIMBER AND HARDWARE, METCASH LIMITED – ASX MTS, MITRE 10 LIMITED, HOME CONSORTIUM, GREAT AMERICAN GROUP, UBS HOLDINGS PTY LTD, SPOTLIGHT STORES PTY LTD, CHEMIST WAREHOUSE, AURRUM PTY LTD, ANACONDA STORES PTY LTD, JB HI-FI LIMITED – ASX JBH, THE GOOD GUYS, DAN MURPHY’S, BUNNINGS GROUP LIMITED, BAKER AND McKENZIE, THE BLACKSTONE GROUP LP, STOCKLAND – ASX SGP, CHARTER HALL GROUP – ASX CHC, VICINITY CENTRES – ASX VCX, MACQUARIE CAPITAL PTY LTD

Caltex’s Segal eyes Woolies fuel retail chain

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 1 & 11 : 24-Aug-16

It is estimated that Woolworths’ petrol stations business could fetch between $A1.3bn and $A1.5bn. Dale Koenders of Citigroup believes that Caltex Australia is likely to be the only bidder for the fuel retailing business, and Caltex CEO Julian Segal says his company would be interested in the division if it is put on the market. Caltex also intends to trial revamped convenience stores at some of its petrol stations. The pilot stores will feature quick service restaurants, fresh food and barista-made coffee.

CORPORATES
CALTEX AUSTRALIA LIMITED – ASX CTX, WOOLWORTHS LIMITED – ASX WOW, MORGAN STANLEY AUSTRALIA LIMITED, INVESTORS MUTUAL LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, VIVA ENERGY AUSTRALIA LIMITED, VIVA ENERGY REIT – ASX VVR