RETAIL TRADE – AUSTRALIA

State of the Nation: Australian Retail

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 24-Nov-15

Roy Morgan Research CEO Michele Levine presented the latest State of the Nation Report on 24 November 2015, with a special Spotlight on Retail. The report shows that Australians spent more than $A100bn on consumer goods in the 2014-15 financial year, which is five per cent higher than previously. The report also shows that Australians’ online expenditure rose by 9.7 per cent in 2014-15, to $A37.8bn, while an estimated 72 per cent of online expenditure (or about $A27bn) is on Australian online-only sites or the internet offerings of local retailers. Michele Levine says today’s shoppers want (and expect) it all, and to be able to get it by whatever device or channel suits them best, and Australia’s most successful retailers are those that can supply the demand from all angles.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Gerry Harvey faces possible strike and spill

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Original article by Sue Mitchell
The Australian Financial Review – Page: 9 : 24-Nov-15

The "two strikes" rule could be invoked at the 2015 annual meeting of retailer Harvey Norman, after more than 25 per cent of shareholders voted against its remuneration report in 2014. Executive chairman Gerry Harvey argues that the group’s executives are paid less than the bulk of companies that are of a comparable size. Harvey and the family of late co-founder Ian Norman have sufficient voting power to thwart a board spill if they choose to do so. Harvey traditionally does not vote on the remuneration report.

CORPORATES
HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION

Aldi favours shock and awe over surprise in SA invasion

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Original article by Sue Mitchell
The Australian Financial Review – Page: 26 : 19-Nov-15

Germany-based Aldi aims to open 16 stores in South Australia during 2016, with the first store slated to open on 3 February. Tom Kierath of Morgan Stanley forecasts that Aldi will boast a market share of about five per cent within 12 months of entering the state’s grocery sector. More than 35 per cent of Australians now shop at an Aldi store in an average four-week period, according to a survey by Roy Morgan Research. Aldi will also expand into Western Australia in 2016.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, ROY MORGAN RESEARCH LIMITED, UBS HOLDINGS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, IGA, METCASH LIMITED – ASX MTS

Woolies taps Best & Less boss for seat

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 & 22 : 17-Nov-15

Australian-listed retailer Woolworths is believed to have invited Holly Kramer to become a non-executive director. Kramer is on the boards of AMP and Nine Entertainment Company, having stepped down as CEO of discount department store group Best & Less in May 2015. Woolworths is seeking to appoint three directors to replace Ian MacFarlane, Christine Cross and David Mackay. It has also yet to appoint a successor to CEO Grant O’Brien, who may remain at the helm until his replacement is appointed.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, BEST AND LESS PTY LTD, AMP LIMITED – ASX AMP, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, BIG W DISCOUNT STORES, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, TESCO PLC, KELLOGG (AUSTRALIA) PTY LTD, RESERVE BANK OF AUSTRALIA, YALE UNIVERSITY, GEORGETOWN UNIVERSITY, FORD MOTOR COMPANY AUSTRALIA LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, PACIFIC BRANDS LIMITED – ASX PBG, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, CGI GLASS LEWIS PTY LTD

Woolies credit outlook cut, rating questioned

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 6-Nov-15

Moody’s Investors Service has maintained Woolworths’ "Baa1" credit rating, although the retailer’s credit outlook has been downgraded from "stable" to "negative". Ian Chitterer of Moody’s attributes the move to factors such as disappointing sales for the first quarter of 2015-16 and Woolworths’ third earnings downgrade in less than a year. He has also expressed concern about the uncertainty concerning the timeframe for appointing a new CEO.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S CORPORATION, BIG W DISCOUNT STORES, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Woolworths dividend and rating at risk

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 4-Nov-15

Ian Chitterer of ratings agency Moody’s says Australian-listed Woolworths needs to take action to arrest a decline in same-store sales. Chitterer will meet with the retailer’s executives shortly, and he says Woolworths may need to consider measures such as asset sales and a reduction in its dividend payout. Moody’s downgraded Woolworths’ credit rating in August 2015, while Standard & Poor’s did so in late October.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S CORPORATION, CITIGROUP PTY LTD, BIG W DISCOUNT STORES, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, TESCO PLC

Kikki.K just outpaces Smiggle

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Original article by Sue Mitchell
The Australian Financial Review – Page: 29 : 4-Nov-15

Australian retailer Kikki.K has posted a 2014-15 net profit of $A1.1m, while sales rose by 28 per cent to $A60.9m. The stationery retailer’s sales and store numbers have risen strongly in the last five years. Rival stationery retailer Smiggle posted sales of $A132.6m in fiscal 2015, which is 26 per cent higher than previously, while OfficeWorks’ sales were up 8.8 per cent at $A1.7bn.

CORPORATES
KIKKI.K PTY LTD, SMIGGLE PTY LTD, PREMIER INVESTMENTS LIMITED – ASX PMV, OFFICEWORKS SUPERSTORES PTY LTD, WESFARMERS LIMITED – ASX WES, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, BOOST JUICE PTY LTD, ECORP LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, JURLIQUE INTERNATIONAL PTY LTD, KORDA MENTHA AND COLLEAGUES PTY LTD, 333 CAPITAL PTY LTD

Woolies drop raises fears of price war

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 3-Nov-15

Shareholders in Australian-listed food and grocery retailers fear that a price war may erupt again, threatening the value of their investments. UBS analyst Ben Gilbert believes that the risk of a price war is quite real, considering that the companies are determined to defend their market share. Woolworths shares declined two per cent on 2 November 2015 to a four-year low of $A23.60.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, METCASH LIMITED – ASX MTS, WESFARMERS LIMITED – ASX WES, UBS HOLDINGS PTY LTD, NIKKO ASSET MANAGEMENT GROUP, ASDA GROUP PLC, LIDL GMBH & CO KG, TESCO PLC, J SAINSBURY PLC, ALDI STORES SUPERMARKETS PTY LTD

Consumers ‘happiest in seven years’

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 & 22 : 28-Oct-15

Harvey Norman has posted pre-tax earnings of $A91.8m for the first quarter of 2015-16, which is 27.8 per cent higher than previously. The retailer’s same-store sales in Australia rose by 7.1 per cent year-on-year, and chairman Gerry Harvey says consumer confidence is at its highest level for at least seven years. Fantastic Holdings and Super Retail Group have also reported healthy growth in sales so far in 2015-16. The ANZ-Roy Morgan Consumer Confidence index has increased by 0.1 per cent to 113.4 in the last week.

CORPORATES
HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, FANTASTIC HOLDINGS LIMITED – ASX FAN, SUPER RETAIL GROUP LIMITED – ASX SUL, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ROY MORGAN RESEARCH LIMITED, PACIFIC BRANDS LIMITED – ASX PBG, NONI B LIMITED – ASX NBL, SUPER CHEAP AUTO, REBEL SPORT LIMITED, RAY’S OUTDOORS, WOOLWORTHS LIMITED – ASX WOW, BIG W DISCOUNT STORES, CITIGROUP PTY LTD

Woolies rewards to cost it $500m a year

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 27-Oct-15

Woolworths’ revamped customer loyalty scheme will reward shoppers for purchasing about 500 grocery items. The Australian Centre for Retail Studies estimates that it would take less than eight weeks for the average customer to cash in their credits for a $A10 reward. Michael Simotas of Deutsche Bank expects the new scheme to cost Woolworths around $A500 per year.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, AUSTRALIAN CENTRE FOR RETAIL STUDIES, MONASH UNIVERSITY, DEUTSCHE BANK AG, THOUGHTWORKS AUSTRALIA PTY LTD, QANTAS AIRWAYS LIMITED – ASX QAN, QANTAS FREQUENT FLYER LIMITED