RETAIL TRADE – AUSTRALIA

Record fine for 7-Eleven exploitation

roymorgansocial Leave a comment

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?

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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

Shoppies wedge Shorten on penalties

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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

roymorgansocial Leave a comment

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