RETAIL TRADE – AUSTRALIA

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

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

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

Premier gives McInnes a million reasons to stay around

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 28-Apr-16

Premier Investments has extended the contract of its retail CEO Mark McInnes for another few years, with new incentives added to it. His base remuneration has been increased from $A2 million to $A2.5 million. He is now allowed to sell 800,000 shares, worth $A12.5 million. McInnes’ new remuneration package is yet to be approved by shareholders. Some of them think the package is too generous.

CORPORATES
PREMIER INVESTMENTS LIMITED – ASX PMV, JUST JEANS PTY LTD, PETER ALEXANDER, SMIGGLE PTY LTD, DOTTI, PORTMANS PTY LTD, DAVID JONES LIMITED

Why Aldi’s red-hot on snow gear segment

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Original article by Eli Greenblat
The Australian – Page: 19 & 22 : 27-Apr-16

Discount supermarket chain Aldi has become Australia’s largest retailer of skiwear and snow clothing, according to local CEO Tom Daunt. Aldi has launched a separate website for ski clothing, with the aim of attracting shoppers on higher incomes who would not usually visit one of its stores. Aldi currently boasts nine stores in South Australia, and Daunt says the group is pleased with its initial success in the state. Its first store in Western Australia will open later in 2016.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, SNOWSPORTS INDUSTRIES OF AUSTRALIA

Where do Australians buy their homewares?

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 7-Apr-16

A Roy Morgan Single Source survey has found that just over 1.6 million Australians aged 14+ buy homewares in an average four weeks, spending an average of $A73 per person. The survey, which was carried out in the year to December 2015, also shows that 286,000 Australians make at least one homewares purchase from Kmart in an average four weeks, with an average spend of $A54 each. Meanwhile, 90,000 Australians buy homewares from IKEA in any given four weeks, but with an average spend of $A118 each.

CORPORATES
ROY MORGAN RESEARCH LIMITED, KMART AUSTRALIA LIMITED, IKEA TRADING PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, WOOLWORTHS LIMITED – ASX WOW, BUNNINGS GROUP LIMITED

7-Eleven’s legal woes

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Original article by Sarah Danckert
The Age – Page: 24 : 7-Apr-16

Australia’s Fair Work Ombudsman alleges that 7-Eleven franchisee Jim Chien-Ching Chang falsified payroll records and underpaid eight employees. One employee is said to be owed more than $A13,000 in unpaid wages, while the Ombudsman claims that none of Chang’s employees were paid shift worker allowances or weekend penalty rates. 7-Eleven employees have been paid about $A10m to date via a compensation scheme that was established in the wake of the wage exploitation scandal in 2015.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN, JS TOY PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION

Lew inducted as retail legend

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Original article by Sue Mitchell
The Australian Financial Review – Page: 22 : 31-Mar-16

Premier Investments chairman Solomon Lew will join an exclusive group when he is inducted into the World Retail Congress Hall of Fame. He is the first Australian to be added to the hall of fame, whose members include the founders of international retail giants such as IKEA, Zara and Uniqlo. Tommy Hilfiger and Jo Malone will also be inducted into the hall of fame in 2016.

CORPORATES
PREMIER INVESTMENTS LIMITED – ASX PMV, WORLD RETAIL CONGRESS HALL OF FAME, IKEA INTERNATIONAL A/S, ZARA, UNIQLO COMPANY LIMITED, ARCADIA GROUP PLC, MARTHA STEWART LIVING OMNIMEDIA INCORPORATED, JUST JEANS PTY LTD, PETER ALEXANDER, SMIGGLE PTY LTD, DOTTI, PORTMANS PTY LTD, VOYAGER DISTRIBUTING COMPANY PTY LTD, PLAYCORP PTY LTD, CENTURY PLAZA INVESTMENTS PTY LTD, FCUK, NINE WEST AUSTRALIA PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, COUNTRY ROAD LIMITED, DAVID JONES LIMITED, WOOLWORTHS HOLDINGS LIMITED, BUNNINGS GROUP LIMITED, SASS AND BIDE PTY LTD

Booktopia pushes ahead with plans for $150m IPO

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 : 30-Mar-16

Australian online book retailer Booktopia may pursue a sharemarket float in the second half of 2016. CEO Tony Nash says the bulk of proceeds from the proposed IPO will be used to finance Booktopia’s expansion plans and invested in its supply chain processes. Booktopia’s sales are forecast to exceed $A100m in 2017, and Nash is not unduly concerned about competition from The Book Depository, which is owned by Amazon.

CORPORATES
BOOKTOPIA PTY LTD, THE BOOK DEPOSITORY LIMITED, AMAZON.COM INCORPORATED, BOOKWORLD, PENGUIN RANDOM HOUSE, ORD MINNETT GROUP LIMITED, MORGANS FINANCIAL LIMITED, TEMPLE AND WEBSTER GROUP LIMITED – ASX TPW, SURFSTITCH GROUP LIMITED – ASX SRF, IBISWORLD PTY LTD

Woolworths needs to fix more than its Homebrands

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Original article by Sue Mitchell
The Australian Financial Review – Page: 11 : 30-Mar-16

Marketing Focus’s Barry Urquhart says Woolworths will need to market a change in branding for its entry-level private-label products in the same way it markets national brands. Woolworths intends to phase out the Homebrand name in favour of Essentials, in a bid to counter perceptions that the private-label products of rival grocery chains are of better quality. Melbourne Business School’s Mark Ritson says Woolworths should also seek to reposition its other private-label brands.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MARKETING FOCUS PTY LTD, MELBOURNE BUSINESS SCHOOL, PRINCIPALS, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD