RETAIL TRADE – AUSTRALIA

Shoppies wedge Shorten on penalties

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Original article by Elizabeth Colman, Jared Owens
The Australian – Page: 8 : 3-Jun-16

The Shop, Distributive & Allied Employees’ Association has attracted criticism after its enterprise agreement with Coles was struck down by the Fair Work Commission. Council of Small Business of Australia CEO Peter Strong has accused the union of hypocrisy for using its website to continue campaigning against lower penalty rates. The enterprise agreement excluded penalty rates for some workers. A spokesman for Opposition Leader Bill Shorten says the FWC should not have approved the agreement in the first place.

CORPORATES
SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, COLES SUPERMARKETS AUSTRALIA PTY LTD, AUSTRALIA. FAIR WORK COMMISSION, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, 7-ELEVEN STORES PTY LTD, ACTU, AUSTRALIA. PRODUCTIVITY COMMISSION, NATIONAL TERTIARY EDUCATION INDUSTRY UNION, AUSTRALIA. DEPT OF EMPLOYMENT

Coles-union deal paid below legal safety net

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Original article by Elizabeth Colman
The Australian – Page: 2 : 1-Jun-16

The Fair Work Commission has ruled against an enterprise bargaining agreement between grocery giant Coles and the Shop, Distributive & Allied Employees’ Association. The FWC found that the agreement does not comply with the Fair Work Act’s requirement that employees must be better off overall, as it provides for an hourly rate of pay that is above the award rate but includes lower penalty rates. The FWC had approved the deal in 2015, but a part-time employee challenged the validity of the agreement.

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

Aldi closes in on giants as profitability grows

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 31-May-16

UBS has forecast that Aldi will record annual growth in grocery sales in Australia of 15 per cent over the next three years. This is 4-5 times higher than the sector’s growth rate overall. Ben Gilbert of UBS forecasts that Aldi’s share of the national grocery market will exceed 10 per cent by 2019-20, compared with about seven per cent at present. He believes that the discount grocery chain will soon reach a "tipping point" in terms of its share of consumers’ main grocery shop.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, UBS HOLDINGS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, METCASH LIMITED – ASX MTS, LIDL GMBH & CO KG

Harvey Norman brushes off rival threat

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 25-May-16

Steinhoff International currently has two POCO stores in Australia, which sell a range of household appliances, furniture and home renovation products. Steinhoff is believed to be planning to expand its POCO chain to at least 45 stores in the next several years, and may seek to acquire some Masters sites. Harvey Norman chairman Gerry Harvey has downplayed the impact that the POCO expansion will have on his company, arguing that they offer a different product mix.

CORPORATES
STEINHOFF INTERNATIONAL HOLDINGS LIMITED, POCO AUSTRALIA, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, THE GOOD GUYS, JB HI-FI LIMITED – ASX JBH, FREEDOM FURNITURE, SNOOZE SLEEP WELL PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, BEST AND LESS PTY LTD, HARRIS SCARFE HOLDINGS LIMITED, CONFORAMA, HARVEYS, PEP CORPORATION, POSTIE PLUS GROUP LIMITED, RETRAVISION (AUSTRALIA) PTY LTD, CLIVE ANTHONYS PTY LTD, BRASHS PTY LTD, RICK HART DISCOUNTS, CLIVE PEETERS, BREVILLE GROUP LIMITED – ASX BRG, ROBINHOOD AUSTRALIA PTY LTD, EVERDURE, BLANCO PTY LTD

Good Guys sees earnings surge if IPO proceeds

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 24-May-16

Consumer electronics retailer The Good Guys has appointed three lead managers to handle a potential IPO, which is expected to raise up to $A900m. However, chairman Andrew Muir is retaining options such as a trade sale. The Good Guys boasts 100 stores, and Muir aims to complete the purchase of 56 joint venture stores by the end of 2015-16. The group has forecast pro forma EBITDA of $A85m for the financial year.

CORPORATES
THE GOOD GUYS, THE MUIR ELECTRICAL COMPANY PTY LTD, JJB SPORTS, STEINHOFF INTERNATIONAL HOLDINGS LIMITED, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, CREDIT SUISSE (AUSTRALIA) LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, BAIN CAPITAL LLC, TPG CAPITAL LP, KKR AND COMPANY LP

Hardware merger is ‘the better of two evils’

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 17-May-16

Mitre 10 boasts a three per cent share of Australia’s hardware market, but this would rise to five per cent if it acquired Woolworths-owned Danks. Hardware retailer John Dahlsen believes that the Australian Competition & Consumer Commission should approve any merger between the two groups. He argues that an enlarged Mitre 10 could reduce its wholesale costs, which could in turn make the independent hardware retailers that it supplies more competitive against Bunnings.

CORPORATES
MITRE 10 LIMITED, DANKS HOLDINGS LIMITED, WOOLWORTHS LIMITED – ASX WOW, BUNNINGS GROUP LIMITED, METCASH LIMITED – ASX MTS, JC DAHLSEN PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, LOWE’S COMPANIES INCORPORATED, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, NATBUILD PTY LTD, DEUTSCHE BANK AG, HOME TIMBER AND HARDWARE, THRIFTY-LINK HARDWARE PTY LTD, TRUE VALUE HARDWARE LIMITED

7-Eleven dumps independent back-pay panel

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Original article by Adele Ferguson, Sarah Danckert
The Age – Page: 3 : 12-May-16

Allan Fels is concerned that employees who were underpaid by 7-Eleven may not be fully compensated after the convenience store chain moved to disband the independent panel that was established to assess compensation claims. Fels and fellow panel member David Cousins have been advised that 7-Eleven will now handle compensation claims in-house. Fels says the move is aimed at minimising the amount of compensation 7-Eleven must pay.

CORPORATES
7-ELEVEN STORES PTY LTD, DELOITTE TOUCHE TOHMATSU LIMITED, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Woolies hit by ratings downgrade

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Original article by Sue Mitchell
The Australian Financial Review – Page: 23 & 32 : 5-May-16

Standard & Poor’s has reduced the long-term credit rating of Woolworths from "BBB+" to " BBB". S&P had previously downgraded the Australian retail giant’s credit rating in August 2015. Rival ratings agency Moody’s will also review its "Baa2" rating on the stock, having downgraded it from "Baa1" in March 2016. The bearish sentiment follows Woolworths’ disappointing financial results for the March quarter. Analysts in turn have reduced their earnings forecasts for 2016 and 2017.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, STANDARD AND POOR’S CORPORATION, MOODY’S INVESTORS SERVICE INCORPORATED, DEUTSCHE BANK AG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, JP MORGAN AUSTRALIA LIMITED, BIG W DISCOUNT STORES, ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD

Over half Australia’s online clothing dollars now stay local – but men still buying more from overseas

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 2-May-16

A Roy Morgan Single Source survey has found that Australians aged 14+ spent an estimated $A2,414m on men’s and women’s clothing online in the year to December 2015. Australia-based sites (whether online-only stores or the web-stores of traditional bricks-and-mortar retailers) accounted for $A1,366m (56 per cent) of this expenditure, while $A1,048m (44 per cent) went overseas. The survey also shows that women spent over $A1bn on clothes through Australian online stores in 2015, compared with $A550m on international sites. Conversely, Australian men favour international sites for clothes shopping – although their total expenditure is only around half of that of women.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Decathlon to take on Rebel in Australia’s $1.3 billion sporting equipment market

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 2-May-16

A Roy Morgan Single Source survey has found that 734,000 Australians aged 14+ (3.7 per cent) bought sporting equipment (not including sportswear and sporting footwear) in an average four weeks in the year to March 2016, spending a combined $A1,330m over the year. The survey also shows that Rebel Sport claimed $A254m (19 per cent) of this expenditure, ahead of Amart All Sports ($A50m), Sports Power ($A48m), and Kmart ($A44m).

CORPORATES
ROY MORGAN RESEARCH LIMITED, REBEL SPORT LIMITED, A-MART ALL SPORTS PTY LTD, SPORTS POWER, KMART AUSTRALIA LIMITED, BIG W DISCOUNT STORES, SUPER RETAIL GROUP LIMITED – ASX SUL, SPORTSCO PTY LTD, STADIUM SPORTS PTY LTD, ANACONDA STORES PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, TARGET AUSTRALIA PTY LTD, EBAY INCORPORATED, DEALSDIRECT.COM.AU PTY LTD, DECATHLON