RETAIL TRADE – AUSTRALIA

Iain Nairn leaves DJs abruptly, citing personal reasons

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Original article by Matthew Drummond
The Australian Financial Review – Page: 1 & 8 : 1-Oct-15

David Jones CEO Iain Nairn has declined to comment on his resignation after just over 12 months in the role. He will remain at the department store group during a three-month transition to new CEO John Dixon, who was previously an executive at Marks & Spencer in the UK. A spokeswoman for David Jones’s parent company, South Africa-based Woolworths Holdings, has refuted speculation that Nairn’s resignation was linked to an audit of expense accounts.

CORPORATES
DAVID JONES LIMITED, WOOLWORTHS HOLDINGS LIMITED, MARKS AND SPENCER PLC, COUNTRY ROAD LIMITED, CITIGROUP PTY LTD

Metcash plays down threat of Aldi expansion into WA, SA

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Original article by Simon Evans
The Australian Financial Review – Page: 17 : 30-Sep-15

Aldi will enter the South Australian and Western Australian markets in 2016, with plans for 120 stores in coming years. IGA stores in the two states typically boast higher profit margins than those on the east coast, and Metcash CEO Ian Morrice believes that IGA stores in SA and WA are in a stronger position to compete with Aldi than IGA stores in Victoria and New South Wales. Morrice has also downplayed the prospect of a price war between Coles and Woolworths.

CORPORATES
METCASH LIMITED – ASX MTS, IGA, ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, FOODLAND AUSTRALIA LIMITED, CELLARBRATION PTY LTD, THE BOTTLE-O, IGA LIQUOR, MITRE 10 LIMITED, TRUE VALUE HARDWARE LIMITED, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD

Nothing small about the small electrical market

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 28-Sep-15

A Roy Morgan Single Source survey has found that Australians spend more than $A260m buying almost 1.7 million small electrical items in an average four weeks. The survey, which was carried out in the year to June 2015, also shows that Australian bought 233,500 small electrical goods from The Good Guys during an average four-week period, ahead of Harvey Norman (208,000). Meanwhile, more than one in 10 small electronic items are now purchased online (179,000 during an average four weeks). Of these, some 134,500 items are bought through online-only stores such as Appliances Online and Deals Direct. The remainder are purchased via the online sites of bricks-and-mortar retailers.

CORPORATES
ROY MORGAN RESEARCH LIMITED, THE GOOD GUYS, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, APPLIANCES ONLINE PTY LTD, DEALSDIRECT.COM.AU PTY LTD, BIG W DISCOUNT STORES, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, TARGET COUNTRY, MYER HOLDINGS LIMITED – ASX MYR, GODFREYS GROUP LIMITED – ASX GFY, ALDI STORES SUPERMARKETS PTY LTD, BING LEE ELECTRICS PTY LTD, JB HI-FI LIMITED – ASX JBH, EBAY AUSTRALIA AND NEW ZEALAND PTY LTD, BETTA ELECTRICAL PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, BUNNINGS GROUP LIMITED

7-Eleven franchisees chose own pay rates

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Original article by Adele Ferguson, Sarah Danckert, Mikaela Day
The Australian Financial Review – Page: 23 : 25-Sep-15

Key executives of 7-Eleven Stores appeared before a Senate hearing on 24 September 2015. CEO Warren Wilmot revealed that until a few years ago franchisees had been able to pay staff what they deemed appropriate without reference to the minimum wage. He stressed that this system is no longer in place. Meanwhile, 7-Eleven executive Natalie Dalbo said there has been a 16 per cent increase in the wages paid to employees of 536 stores that use the group’s centralised payroll system since a media expose on the wage scandal.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN

7-Eleven was warned over worker fraud

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Original article by Adele Ferguson, Sarah Danckert
The Age – Page: 25 : 24-Sep-15

Consumer advocate Michael Fraser has revealed in a submission to a Senate inquiry into wage exploitation at 7-Eleven that he first warned the convenience store group of the scandal in late 2012. Meanwhile, Stewart Levitt, the principal of law firm Levitt Robinson, has used his submission to urge the Federal Government to hold 7-Eleven’s Melbourne head office accountable for the scandal, rather than franchisees. He says the Government should provide an amnesty for 7-Eleven workers who are on student visas.

CORPORATES
7-ELEVEN STORES PTY LTD, LEVITT ROBINSON, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, MAURICE BLACKBURN PTY LTD, AUSTRALIA. FAIR WORK COMMISSION

Baby Bunting plans growth spurt to double in size after ASX float

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Original article by Patrick Hatch
The Australian Financial Review – Page: 15 : 23-Sep-15

Infant supplies retailer Baby Bunting currently has 33 stores, but the group is planning an aggressive expansion following its proposed $A52m IPO. Shares will be offered at $A1.40 apiece, with proceeds of the float to be used to reduce Baby Bunting’s debt. CEO Matt Spencer forecasts that pre-tax earnings will top $A16.3m in 2015-16, with sales of $A218.6 million. The baby goods market is estimated to be worth $A2.3bn.

CORPORATES
BABY BUNTING PTY LTD

Woolworths to spend $65m on fresh look

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 20 : 21-Sep-15

Australian-listed Woolworths will respond to customer complaints by spending $A65m on upgrading its supermarkets, including new shopping trolleys, in-store signage and shelving. The head of the group’s supermarkets division, Dave Chambers, says shopper have frequently complained about poor customer service and stock not being available. Woolworths is also undertaking daily customer surveys and using data analytics to improve its stores.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, IGA, ALDI STORES SUPERMARKETS PTY LTD, COSTCO WHOLESALE AUSTRALIA PTY LTD, THE QUANTIUM GROUP PTY LTD, PROGRESSIVE ENTERPRISES HOLDINGS LIMITED, FOODTOWN SUPERMARKETS LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD

IGA prepares for Aldi attack

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Original article by Sue Mitchell
The Australian Financial Review – Page: 27 : 17-Sep-15

Aldi will expand into the Western Australian and South Australian markets in 2016, and it will pose a major threat to Metcash in particular. Nearly 30 per cent of stores that trade under Metcash’s IGA banner are located in these states. Morgan Stanley believes that Aldi’s entry could slash the sales of independent retailers operating under the IGA banner by about $A360m a year, while Metcash itself could face a sharp fall in sales. Its market share in the eastern states is already falling, although a survey by Roy Morgan Research shows that it boasts the highest level of customer loyalty.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, METCASH LIMITED – ASX MTS, IGA, COLES GROUP LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, ROY MORGAN RESEARCH LIMITED, SIMMO’S ICE CREAMERY

7-Eleven founder resigns from AOC

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Original article by Adele Ferguson, Sarah Danckert
The Australian Financial Review – Page: 11 : 10-Sep-15

The wages scandal at 7-Eleven Stores has prompted chairman and founder Russell Withers to step down from the Australian Olympic Committee (AOC) board. Withers had been on the AOC board since 2001. Meanwhile, 7-Eleven board member Michael Smith has stood down as the chairman of the Australian Institute of Company Directors while the convenience store chain undertakes an investigation into the affair.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIAN OLYMPIC COMMITTEE, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, INTERNATIONAL OLYMPIC COMMITTEE, AUSTRALIAN BROADCASTING CORPORATION, FAIRFAX MEDIA LIMITED – ASX FXJ

Visa amnesty needed for all victims

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Original article by Stephen Clibborn
The Age – Page: 44 : 9-Sep-15

The Australian Government is said to be considering providing an amnesty to foreign students who have been allegedly cheated out of wages by 7-Eleven. While the Government should grant an amnesty to international students, it also needs to take action on the exploitation of all foreign workers by dodgy employers. Data from the Fair Work Ombudsman shows that migrant workers on temporary visas are also being underpaid by employers in many sectors of the economy. Any amnesty should apply to all of these employees.

CORPORATES
7-ELEVEN STORES PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN, UNIVERSITY OF SYDNEY