RETAIL TRADE – AUSTRALIA

Woolworths tries third rejig of loyalty scheme

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Original article by Sue Mitchell
The Australian Financial Review – Page: 3 : 23-Aug-16

Australian-listed retailer Woolworths has again changed its customer loyalty scheme. This is the third modification of the scheme in 10 months. The company decided to reintroduce Qantas Frequent Flyer points in order to make the system more attractive to AB-demographic shoppers, who switched to other supermarkets when these points were removed from the scheme in 2015. Analysts have welcomed the changes to the scheme.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, BWS – BEER WINE SPIRITS, CALTEX AUSTRALIA LIMITED – ASX CTX, AUSTRALIAN CENTRE FOR RETAIL STUDIES, BIG W DISCOUNT STORES, QANTAS AIRWAYS LIMITED – ASX QAN

Woolies’ Masters discounting dims Beacon’s stellar growth

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Original article by Sue Mitchell
The Australian Financial Review – Page: 20 : 19-Aug-16

Australian-listed Beacon Lighting Group has posted a 2015-16 statutory net profit of $A18.3m, which is eight 8 per cent higher than previously. However, Beacon recorded a 14.6 per cent decline in profits during the second half, which it attributes to large price discounts on lighting products by Masters Home Improvement. Beacon recorded overall sales growth of 7.7 per cent, while same-store sales grew by just 2.7 per cent.

CORPORATES
BEACON LIGHTING GROUP LIMITED – ASX BLX, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, MORGANS FINANCIAL LIMITED

Coles prepares to milk consumer taste for branded dairy products

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 : 9-Aug-16

Coles will launch a new milk brand in the third week of August 2016. The new product will be priced higher than the supermarket chain’s private label milk, which costs $A1.00 per litre. Coles intends to divert $A0.20 a litre from sales of the new product to a hardship and innovation fund. Victorian dairy farmers, who are supposed to be the beneficiaries of the Farmers Fund, see the initiative as a marketing stunt. They say they would prefer being paid more for milk.

CORPORATES
COLES SUPERMARKETS AUSTRALIA PTY LTD, MURRAY GOULBURN CO-OPERATIVE COMPANY LIMITED, WOOLWORTHS LIMITED – ASX WOW, FARMERS FUND, FARMERS OWN, NURTURE FUND, AUSTRALIAN DAIRY FARMERS’ LIMITED, DAIRY AUSTRALIA, VICTORIAN FARMERS FEDERATION

New Woolies CEO shuts store doors on growth strategy

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Original article by Sue Mitchell
The Australian Financial Review – Page: 1 & 16 : 26-Jul-16

Shares in Woolworths closed 8.2 per cent higher at $A24.30 on 25 July 2016, after the retail giant unveiled a restructuring program. Woolworths’ financial results for fiscal 2016 will be hit by restructuring costs in excess of $A4bn, while its EBIT will fall sharply. The turnaround strategy includes the closure of underperforming stores, the retrenchment of 500 employees at its head office and the sale of EziBuy. CEO Brad Banducci says Woolworths could also consider further asset sales in the future in order to retain its investment grade credit rating.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, EZIBUY, BIG W DISCOUNT STORES, AUSTRALIAN LEISURE AND HOSPITALITY GROUP LIMITED, THE QUANTIUM GROUP PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, HOME TIMBER AND HARDWARE, CREDIT SUISSE (AUSTRALIA) LIMITED, PERPETUAL INVESTMENTS

Fears 7-Eleven workers could be left in cold

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Original article by Anna Patty
The Age – Page: 21 : 23-Jun-16

A 7-Eleven store in Brisbane has been ordered to pay a penalty of more than $A400,000 for worker exploitation. An investigation by the Fair Work Ombudsman revealed that 12 employees were underpaid more than $A82,000. Maurice Blackburn’s Brisbane employment principal Giri Sivaraman has warned that the owner of the store could opt for bankruptcy, depriving the affected workers of their compensation.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN, MAURICE BLACKBURN PTY LTD

Record fine for 7-Eleven exploitation

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Original article by Anna Patty
The Age – Page: 2 : 22-Jun-16

The Federal Circuit Court has ordered a 7-Eleven franchisee to pay $A408,348 in penalties for underpaying staff. The court has found that the Brisbane store’s owner had underpaid 12 employees more than $A82,000 and had falsified the store’s payroll records. Judge Michael Jarrett said the franchisee had displayed "contemptuous disregard" for workplace laws. He was ordered to pay the outstanding wages, although the employees are still owed about $A35,000.

CORPORATES
7-ELEVEN STORES PTY LTD, FEDERAL CIRCUIT COURT OF AUSTRALIA, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. FAIR WORK OMBUDSMAN

Can Myer shrink to greatness?

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Original article by James Thomson
The Australian Financial Review – Page: 16 : 21-Jun-16

Credit Suisse analyst Grant Saligari suggests that Australian-listed department store group Myer should reduce its floor space by up to 20 per cent. Saligari visited Myer’s stores at Doncaster, Eastland, Chadstone and Highpoint in Victoria and concluded that their trading space – at more than 12,000 sq m in each – is excessive. Improvements in customer services and refurbishment of stores are also necessary.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP

SurfStitch class action looms over briefings

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Original article by Sue Mitchell
The Australian Financial Review – Page: 28 : 14-Jun-16

The disclosure practices of online retailer SurfStitch are under scrutiny in the wake of a large share price fall that reduced its market capitalisation by $A500m. The stock fell by 53 per cent to $A0.48 in early May 2016, in response to a profit downgrade. There had also been heavy selling in the previous week, after the group held private briefings for some shareholders. Glenn McGowan, a partner at law firm Gadens, may launch a class-action on behalf of SurfStitch shareholders.

CORPORATES
SURFSTITCH GROUP LIMITED – ASX SRF, GADENS LAWYERS, MORGAN STANLEY AUSTRALIA LIMITED, STAB, MAGICSEAWEED, GARAGE ENTERTAINMENT, SURF HARDWARE INTERNATIONAL PTY LTD

Godfreys backed for long-term

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Original article by Simon Evans
The Australian Financial Review – Page: 15 : 14-Jun-16

Shares in vacuum cleaner retailer Godfreys have fallen to $A1.015, compared with an issue price of $A2.75 in late 2014. However, major shareholder John Johnston is upbeat about the outlook for the group, and recently increased his stake to 24.9 per cent. He notes that there will always be demand for vacuum cleaners, while consumers are now replacing these appliances more frequently. Johnston has had an association with Godfreys since 1936.

CORPORATES
GODFREYS GROUP LIMITED – ASX GFY, SHAVER SHOP PTY LTD, ARCADE FINANCE PTY LTD, PACIFIC EQUITY PARTNERS PTY LTD, UNITAS CAPITAL PARTNERS PTY LTD, NOMURA AUSTRALIA LIMITED, INVESTEC AUSTRALIA LIMITED, JB HI-FI LIMITED – ASX JBH, MYER HOLDINGS LIMITED – ASX MYR, BIG W DISCOUNT STORES

Shareholders get cut of Shaver Shop’s IPO

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Original article by John Stensholt
The Australian Financial Review – Page: 15 : 14-Jun-16

Shaver Shop is slated to debut on the sharemarket on 1 July 2016, following a $A98m IPO that is believed to have been significantly oversubscribed. The retailer posted EBIT of $A6.5m in 2014-15, which is forecast to rise to about $A11.5m in 2015-16, while its sales for the current fiscal year are expected to be around $A106m. Shaver Shop chairman Brodie Arnhold notes that all of its stores are profitable. The group aims to increase store numbers from 100 to 145 in the next three years.

CORPORATES
SHAVER SHOP PTY LTD, RIP CURL PTY LTD, QUIKSILVER INCORPORATED, MELBOURNE RACING CLUB