RETAIL TRADE – AUSTRALIA

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

Woolworths to offload two key DJs sites

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 23-Jul-15

Woolworths Holdings CEO Ian Moir says the South African group plans to reinvest the proceeds of David Jones asset sales into the department store business. Woolworths is set to sell one of the David Jones stores in both the Melbourne and Sydney CBDs. The two stores could fetch around $A400m in total, and Moir says the remaining two stores in the CBDs will be expanded and upgraded. The David Jones food halls will also be upgraded at a cost of $A8m.

CORPORATES
WOOLWORTHS HOLDINGS LIMITED, DAVID JONES LIMITED, COUNTRY ROAD LIMITED, WITCHERY FASHIONS PTY LTD, TRENERY, SEED, FCUK

Buying car parts and accessories online

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

A Roy Morgan Single Source survey has found that 40 per cent of Australians aged 14+ (or 7.7 million people) made at least one purchase via the internet in an average four weeks during the year to March 2015. This compares with 5.3 million in March 2011. The survey also shows that the number of Australians who have bought an automotive product online in an average four weeks has risen from 219,000 to 306,000 over this period. Meanwhile, people who regard themselves as "as a bit of a car enthusiast" are almost 200 per cent more likely than the average Australian to buy auto parts online in an average four weeks.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Going Dotti for Zara: Australia’s fashion retail scene offers the best of both worlds

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

A Roy Morgan Single Source survey has found that just over 10.5 million Australians aged 14+ buy at least one item of clothing in an average four-week period. The survey, which was carried out in the year to March 2015, also shows that Swedish mega-chain H&M is the most popular, with 143,000 Australian shoppers in any given four weeks. It is followed by Australian boutique Forever New (108,000 shoppers ) and Spanish giant Zara (106,000). Meanwhile, Cue customers are the biggest spenders, with a mean spend of $A165 per visit.

CORPORATES
ROY MORGAN RESEARCH LIMITED, HENNES OCH MAURITZ AB, FOREVER NEW CLOTHING PTY LTD, ZARA, CUE CLOTHING COMPANY, UNIQLO COMPANY LIMITED, TOPSHOP, ESPRIT AUSTRALIA PTY LTD, THE GAP INCORPORATED, SUPRE PTY LTD, SPORTSGIRL, DOTTI

Winter vortex warms retailers’ hearts

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Original article by Patrick Hatch
The Australian Financial Review – Page: 3 : 16-Jul-15

Australian retailers have enjoyed a surge in sales of warm clothing and heaters due to the onset of very cold weather in the eastern states in mid-July 2015. The Good Guys’ sales of portable heaters have risen by 20 per cent in Victoria and 22 per cent in New South Wales, while Melbourne clothing retailers Otto & Spike and The Coat Man have reported strong demand for their products. Bogong Equipment’s sales of skiing gear have also risen strongly.

CORPORATES
THE GOOD GUYS, OTTO AND SPIKE, THE COAT MAN, BOGONG EQUIPMENT PTY LTD, LMB KNITWEAR PTY LTD

Coles, Woolies cut private label prices to ward off Aldi incursion

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

Data from Deutsche Bank shows that there was a 1.3 per cent increase in the prices of brand-name groceries in the June 2015 quarter. However, the prices of private-label products fell by 6.1 per cent, as Coles and Woolworths sought to defend their market share against Aldi. Deutsche’s supermarket inflation survey also shows that the price of a basket of brand-name groceries at Coles increased by 5.1 per cent during the quarter, compared with a 2.6 decline at Woolworths.

CORPORATES
DEUTSCHE BANK AG, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, MACQUARIE EQUITIES LIMITED, METCASH LIMITED – ASX MTS, SUPA IGA

Aldi in great shape for Coles, Woolies battle

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Original article by Sue Mitchell
The Australian Financial Review – Page: 11 & 14 : 14-Jul-15

Woolworths continues to have the highest pre-tax profit margin among Australian grocery retailers, at 7.1 per cent. However, Aldi boasted a profit margin of 5.2 per cent in 2013, according to its submission to a Senate tax inquiry. This compares with a profit margin of just 4.3 per cent for Coles. Craig Woolford of Citigroup believes that Aldi will gain more market share at the expense of its two main rivals, while Craig Young of Nikko Asset Management doubts that Aldi will pursue a grocery price war.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, CITIGROUP PTY LTD, NIKKO ASSET MANAGEMENT GROUP, DEUTSCHE BANK AG, WESFARMERS LIMITED – ASX WES, AUSTRALIAN LABOR PARTY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Light at end of the tunnel for Ritchies Stores

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Original article by Sue Mitchell
The Australian Financial Review – Page: 21 & 26 : 9-Jul-15

Ritchies Stores’ earnings have fallen by 73 per cent since 2011, but chairman Fred Harrison says the grocery chain returned to profit growth in the 2014-15 financial year. Ritchies is supplied by grocery wholesaler Metcash, and Harrison notes that Metcash’s store refurbishment and price-matching strategy for the IGA network has helped to boost his company’s sales. Harrison adds that price competitiveness has become essential for independent grocery retailers.

CORPORATES
RITCHIES STORES PTY LTD, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MACQUARIE SECURITIES PTY LTD