RETAIL TRADE – AUSTRALIA

Wesfarmers regroups for customer focus

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 & 24 : 25-Feb-16

Wesfarmers has posted a 2015-16 interim net profit of $A1.39bn, which is 1.2 per cent lower than previously. EBIT rose by 1.6 per cent to $A2.11bn and revenue was up 4.7 per cent at $A33.5bn. The group’s retail division posted 9.2 per cent growth in earnings, but its coal operations recorded a loss of $A118m. Meanwhile, Wesfarmers will establish a department store division to house its Kmart and Target businesses, while its industrial and safety businesses will also be restructured.

CORPORATES
WESFARMERS LIMITED – ASX WES, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, BUNNINGS GROUP LIMITED, COLES GROUP LIMITED, BLACKWOODS, PROTECTOR ALSAFE, CREDIT SUISSE (AUSTRALIA) LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, DEUTSCHE BANK AG, CITIGROUP PTY LTD, WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD

7-Eleven workers’ $270,000 pay-day

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Original article by Sarah Danckert
The Age – Page: 23 : 15-Feb-16

The Fels Wage Fairness Panel has so far recovered more than $A2m in unpaid wages for current and past employees who were victims of the 7-Eleven wage exploitation scandal. One former employee of the convenience store chain has been awarded $A33,000 in back-pay. Giri Sivaraman of law firm Maurice notes that one former 7-Eleven employee is owed about $A270,000 in back-pay.

CORPORATES
7-ELEVEN STORES PTY LTD, MAURICE BLACKBURN PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION, BOSEN PTY LTD, AUSTRALIA. FAIR WORK COMMISSION, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION

JB Hi-Fi grabs bigger share after Dick Smith’s demise

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 20 : 9-Feb-16

Listed consumer electronics retailer JB Hi-Fi has posted a 2015-16 interim net profit of $A95.2m, which is 7.5 per cent higher than previously. Sales were 7.7 per cent higher at $A2.12bn, while same-store sales rose by 5.2 per cent. CEO Richard Murray has forecast that the group’s full-year profit will be within the range of $A143m to $A147m, with expectations that sales will total $A3.9bn. Shareholders will receive an interim dividend of $A0.63 per share.

CORPORATES
JB HI-FI LIMITED – ASX JBH, DICK SMITH HOLDINGS LIMITED – ASX DSH, PLATYPUS ASSET MANAGEMENT PTY LTD, CITIGROUP PTY LTD

Blackstone measures Masters as retailers weigh up sites

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Original article by Catie Low
The Australian Financial Review – Page: 13 : 4-Feb-16

US private equity firm Blackstone Group has declined to comment on speculation that it may seek to acquire either the Masters Home Improvement business itself or its portfolio of stores. Meanwhile, Costco and Ikea are among the big-box retailers that are believed to be considering taking over some of the Masters stores, while Bunnings could potentially acquire about 25 outlets. David Errington of Bank of America Merrill Lynch estimates that Woolworths could recover around $A1bn from divesting its home improvement assets.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, THE BLACKSTONE GROUP LP, COSTCO WHOLESALE AUSTRALIA PTY LTD, IKEA TRADING PTY LTD, SPOTLIGHT GROUP HOLDINGS PTY LTD, SPOTLIGHT STORES PTY LTD, ANACONDA STORES PTY LTD, BUNNINGS GROUP LIMITED, WESFARMERS LIMITED – ASX WES, HOME TIMBER AND HARDWARE, METCASH LIMITED – ASX MTS, COLES SUPERMARKETS AUSTRALIA PTY LTD, LOWE’S COMPANIES INCORPORATED, TPG CAPITAL LP, BIG W DISCOUNT STORES, CROWN RESORTS LIMITED – ASX CWN, BLACKSTONE REAL ESTATE ADVISORS LLC

7–Eleven appoints fraud investigator

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Original article by Patrick Hatch
The Australian Financial Review – Page: 19 : 3-Feb-16

Australian convenience store chain 7-Eleven has hired an unnamed former police detective with expertise in fraud and economic crime in the wake of the wage exploitation scandal. The ex-police officer will investigate allegations of fraud and breaches of workplace laws at 7-Eleven stores. The Fair Work Ombudsman has also taken legal action against some franchisees, while the Fels Wage Fairness Panel has been established to compensate employees who have been underpaid.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION

Aldi aims to squeeze rivals in SA and WA

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Original article by Simon Evans
The Australian Financial Review – Page: 15 : 3-Feb-16

Aldi will open its first supermarkets in South Australia on 3 February 2016, with plans to open 16 by the end of the year. There is much stronger competition in South Australia’s grocery sector than in the eastern states, with only a few percentage points separating the market share of Coles, Woolworths and Foodland. Aldi’s state MD Viktor Jakupec says market research has found that South Australian shoppers are seeking the same value proposition as Aldi customers in the eastern states.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, FOODLAND AUSTRALIA LIMITED, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Woolies turns to Saatchi for brand refresh

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 2-Feb-16

Andrew Hicks has been appointed as the director of marketing at Woolworths, a role he has held in an acting capacity since the resignation of chief marketing officer Tony Phillips in May 2015. Meanwhile, Woolworths has hired advertising agency M&C Saatchi to develop a new marketing campaign for its supermarkets business. Leo Burnett has been the retailer’s creative agency for the last two years, and was responsible for revamping the long-running Fresh Food People campaign. It also developed the not-so-successful Cheap Cheap campaign.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, M&C SAATCHI AGENCY PTY LTD, LEO BURNETT PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD

ALDI ups ad spend as rivals cut back

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Original article by Sue Mitchell
The Australian Financial Review – Page: 30 : 1-Feb-16

Data from Nielsen’s Advertising Information Service shows that ALDI Australia increased its advertising budget from $A15m in 2014 to $A28.9m in 2015. In contrast, Coles and Woolworths reduced their advertising expenditure by 25 per cent and 5.3 per cent respectively in 2015. ALDI has ramped up its metropolitan and regional TV advertising in recent years, and reduced its budget for newspaper advertising.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, THE NIELSEN COMPANY (AUSTRALIA) PTY LTD

Investors back bid for Woolworths’ Home

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Original article by Catie Low
The Australian Financial Review – Page: 17 : 28-Jan-16

Allan Gray MD Simon Mawhinney says a merger between Metcash’s Mitre 10 business and the Home Timber & Hardware division of Woolworths could be a good deal if it was secured at an appropriate price. The future of the Home business is uncertain following Woolworths’ decision to exit the ill-fated Masters Home Improvement joint venture. Metcash has been touted as a potential buyer of Home, and it is said to have initiated talks with Woolworths on such a deal in mid-2015.

CORPORATES
METCASH LIMITED – ASX MTS, WOOLWORTHS LIMITED – ASX WOW, MITRE 10 LIMITED, HOME TIMBER AND HARDWARE, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, ALLAN GRAY AUSTRALIA PTY LTD, WESFARMERS LIMITED – ASX WES, BUNNINGS GROUP LIMITED, LUMINIS PARTNERS PTY LTD, DANKS HOLDINGS LIMITED, LOWE’S COMPANIES INCORPORATED, CLSA AUSTRALIA PTY LTD

Retailers hit with 10pc hike in insurance cover

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Original article by Ruth Liew
The Australian Financial Review – Page: 19 : 28-Jan-16

Figures from commercial insurance comparison website BizCover show that small-to-medium businesses continue to benefit from strong competition in Australia’s insurance market. The retail sector is an exception. An insurance policy for a retail business may cost around $A1,700. A non-retail company would pay $A1,000 for a comparable cover. BizCover’s Small Business Insurance Index rose by five points in the fourth quarter of 2015.

CORPORATES
BIZCOVER PTY LTD, ALLIANZ AUSTRALIA LIMITED, AIG AUSTRALIA, QBE INSURANCE GROUP LIMITED – ASX QBE