RETAIL TRADE – AUSTRALIA

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

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