RETAIL TRADE – AUSTRALIA

Dump Masters for HOME, Woolies told

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

The Masters Home Improvement joint venture between Woolworths and US-based Lowe’s has made a total loss of $A604m over the last four years. Although Woolworths still expects Masters to become profitable at some stage, DGC Advisory’s Geoff Dart believes that Masters needs to reposition its business to focus on home finishing products such as paint and carpets. He notes that hardware giant Bunnings boasts only 2-3 per cent of this market.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, LOWE’S COMPANIES INCORPORATED, BUNNINGS GROUP LIMITED, WESFARMERS LIMITED – ASX WES, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, BIG W DISCOUNT STORES, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, CITIGROUP PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, SUPER CHEAP AUTO, BOB JANE T-MARTS PTY LTD, REPCO CORPORATION LIMITED, BEAUREPAIRES, TYRE MARKETERS (AUSTRALIA) LIMITED

7-Eleven head office involved in wage fraud cover-up

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Original article by
The Australian Financial Review – Page: 40 : 31-Aug-15

Fair Work Commission is investigating allegations of wage fraud at franchise chain 7-Eleven. Most of the chain’s employees are students on visas. The underpayment of wages is not limited to 7-Eleven. There are 1.3 million workers in Australia on visas and they are vulnerable to wage abuses.

CORPORATES
7-ELEVEN INCORPORATED, AUSTRALIA. FAIR WORK COMMISSION

More Australians now read catalogues than metro newspapers

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

A Roy Morgan Single Source survey has found that catalogues continue to expand their reach, with more Australians (14+) now reading catalogues during an average week than either Newspapers (excluding Local/Community) or Local/Community Newspapers. The survey shows that almost 10.5 million Australians read or looked into one or more catalogues during an average week in the year to June 2015, back up to a level not seen since 2012, and the growth looks set to continue. From over 11 million in 2011, catalogue readership declined to around 9.5 million Australians in 2013. But catalogue readership rebounded, bucking the continuing downward trend for newspapers. At the end of last year, catalogue readership surpassed that for non-community Newspapers, and the gap has continued to widen. Today, catalogues reach over 600,000 more readers in an average seven-day period than these newspapers, and around 4.3 million more than local/community newspapers. The combined net weekly reach of all newspapers including local and community papers in the year to June 2015 is 12.3 million Australians, down from 14.6 million in the year to June 2012.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Harvey Norman predicted to be solid

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 31 : 6-Aug-15

UBS has a "buy" recommendation on a number of retail stocks that benefit from a strong housing market. The firm is particularly upbeat about the outlook for Harvey Norman in the August 2015 reporting season, although it also likes JB Hi-Fi, Breville Group and Adairs. However, UBS is bearish about grocery retailers. Credit Suisse also favours Harvey Norman, while JB Hi-Fi is the top pick for Macquarie Group.

CORPORATES
UBS HOLDINGS PTY LTD, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, JB HI-FI LIMITED – ASX JBH, BREVILLE GROUP LIMITED – ASX BRG, ADAIRS LIMITED – ASX ADH, CREDIT SUISSE (AUSTRALIA) LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, METCASH LIMITED – ASX MTS, MYER HOLDINGS LIMITED – ASX MYR, SUPER RETAIL GROUP LIMITED – ASX SUL

Sales growth slows as grocery prices cut

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Original article by Sue Mitchell
The Australian Financial Review – Page: 27 : 5-Aug-15

New data shows that there was 2.9 per cent growth in Australian supermarket and grocery store sales in June 2015. This is the lowest rate of growth since September 2013, which is primarily due to price discounting in the sector. Meanwhile, growth in total food and liquor sales slowed to 2.7 per cent in June. Woolworths is seeking to counter stronger sales growth at Coles by reducing grocery prices, while Metcash has launched a price-matching initiative for independent grocery retailers that operate under its IGA banner.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, ALDI STORES SUPERMARKETS PTY LTD, DEUTSCHE BANK AG, MORGAN STANLEY AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, AUSTRALIAN BUREAU OF STATISTICS

Sales growth slows as grocery prices cut

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Original article by Sue Mitchell
The Australian Financial Review – Page: 27 : 5-Aug-15

New data shows that there was 2.9 per cent growth in Australian supermarket and grocery store sales in June 2015. This is the lowest rate of growth since September 2013, which is primarily due to price discounting in the sector. Meanwhile, growth in total food and liquor sales slowed to 2.7 per cent in June. Woolworths is seeking to counter stronger sales growth at Coles by reducing grocery prices, while Metcash has launched a price-matching initiative for independent grocery retailers that operate under its IGA banner.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, ALDI STORES SUPERMARKETS PTY LTD, DEUTSCHE BANK AG, MORGAN STANLEY AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, AUSTRALIAN BUREAU OF STATISTICS

Metcash in alleged stall on SupaBarn deal

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 31-Jul-15

The Australian Competition & Consumer Commission will decide in September 2015 whether to approve Coles Group’s deal to buy SupaBarn. The deal would give Coles an additional nine supermarkets in the Australian Capital Territory and Sydney, although it has existing stores in close proximity to each SupaBarn outlet. Metcash has raised concerns with the ACCC about the proposed deal’s effect on competition, but the grocery wholesaler rejects suggestions that it has organised a supplier campaign against the deal.

CORPORATES
COLES GROUP LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, SUPABARN SUPERMARKETS PTY LTD, METCASH LIMITED – ASX MTS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, INDEPENDENT GROCERS OF AUSTRALIA, MASTER GROCERS’ AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW

Suppliers shocked as DJs and Myer dump brands

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Original article by Sue Mitchell
The Australian Financial Review – Page: 21 : 29-Jul-15

Myer Holdings recorded sales growth of 1.7 per cent in the 10 months to April 2015. The department store group hopes to boost sales by introducing a range of new brands, including Calvin Klein White Label and Oscar de la Renta. However, this will be at the expense of about 100 brands which will no longer be stocked. David Jones also discontinued some brands earlier in 2015. It recorded sales growth of more than 10 per cent in the first half of 2015.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, CALVIN KLEIN INCORPORATED, OSCAR DE LA RENTA, DANIEL AVAKIAN, AJE, JACK AND JONES, FCUK, COUNTRY ROAD LIMITED, TRENERY, SEED

Staff cuts risk ‘dangerous spiral’ at Myer

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 28-Jul-15

Citigroup’s Craig Woolford says Myer Holdings’ plan to scale back its permanent workforce could backfire by adversely affecting customer service and in turn leading to lower sales. The department store group also proposes a 20 per cent reduction in working hours for casual and part-time employees. Myer argues that the changes will result in greater rostering flexibility during periods when staff are most in demand. Myer shed 80 employees at its head office earlier in 2015.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, CITIGROUP PTY LTD, DAVID JONES LIMITED, WOOLWORTHS HOLDINGS LIMITED, CLSA AUSTRALIA PTY LTD, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION

Number might be up for low-cost online imports

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Original article by Fleur Anderson
The Australian Financial Review – Page: 5 : 24-Jul-15

GST revenue could rise by about $A1.7bn annually within five years after the Council of Australian Governments agreed to reduce the tax-exempt threshold for goods purchased from offshore websites from $A1,000 to just $A20. Australian Chamber of Commerce & Industry CEO Kate Carnell says the move will reduce the unfair advantage that online retailers based overseas enjoy at the expense of local retailers.

CORPORATES
COUNCIL OF AUSTRALIAN GOVERNMENTS, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, RETAIL COUNCIL LIMITED, AUSTRALIA. PRODUCTIVITY COMMISSION