RETAIL TRADE – AUSTRALIA

Myer C-suite poised to slash asset values

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Original article by Sue Mitchell
The Australian Financial Review – Page: 23 : 11-Jun-15

The market capitalisation of department store group Myer Holdings is $A795m at present, but the value of its intangible assets exceeds $A930m. Bradley King of Armytage Private suggests that Myer’s new management team could opt for intangible assets and inventory writedowns, while he says a capital raising may also be an option. Recent additions to Myer’s management ranks include new CFO Grant Devonport.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, ARMYTAGE PRIVATE LIMITED, TOLL HOLDINGS LIMITED, VILLAGE ROADSHOW LIMITED – ASX VRL, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT

Retailers duck for cover as global chains battle it out

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 10-Jun-15

International fast-fashion retailers H&M and Forever 21 will shortly open stores in Sydney’s Pitt Street Mall. The growing presence of offshore retailers has forced Australian rivals such as Just Jeans and Sussan to relinquish space in the prestigious shopping precinct, and experts warn that local retailers’ sales are likely to be adversely affected by the growing competition in the sector. Forever 21 boasts more than 700 stores worldwide, and it will open about 70 outlets in 2015.

CORPORATES
HENNES OCH MAURITZ AB, FOREVER 21 INCORPORATED, ZARA, JUST JEANS PTY LTD, PREMIER INVESTMENTS LIMITED – ASX PMV, SUSSAN-SUZANNE GRAE, GLUE, TOPSHOP, COTTON ON, SUPRE PTY LTD, SES, VALLEY GIRL FASHIONS PTY LTD, SHARAF RETAIL, AGENT PROVOCATEUR

Metcash is crunched in retail wars

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 5-Jun-15

Australian-listed Metcash has indicated that its financial accounts for 2014-15 will include asset write-downs totalling $A640m. The grocery group has also advised that dividends will be put on hold for 18 months. The revelations prompted a sharp fall in Metcash’s share price, which finished $A0.245 lower at $A1.14 on 4 June 2015. Metcash expects its full-year underlying EBIT to be within its forecast range of $A315m to $A330m.

CORPORATES
METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, COSTCO WHOLESALE AUSTRALIA PTY LTD, ALLAN GRAY AUSTRALIA PTY LTD, NIKKO ASSET MANAGEMENT GROUP, UBS HOLDINGS PTY LTD, AUSTRALIAN FOOD AND GROCERY COUNCIL, McPHERSON’S LIMITED – ASX MCP

Retailer profits under pressure

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 4-Jun-15

UBS and the Australian Food & Grocery Council have produced a report which shows that supermarket groups’ profit margins have increased at the expense of suppliers over the last five years. However, the report concludes that rising competition in the grocery sector is set to shift the balance in favour of suppliers. Woolworths boasts a margin of eight per cent, which is sigificantly higher than the global average.

CORPORATES
UBS HOLDINGS PTY LTD, AUSTRALIAN FOOD AND GROCERY COUNCIL, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, KPMG AUSTRALIA PTY LTD

Cold snap heats up store clearance sales

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Original article by Sue Mitchell
The Australian Financial Review – Page: 18 : 3-Jun-15

The mid-season clearance sales of Australian retailers are expected to benefit from a chilly start to winter across much of the country. The cold weather is likely to boost demand for warm clothing, allowing department stores and specialty retailers to reduce their winter inventory. Myer has commenced its clearance sale more than a week ahead of schedule, and aims to sell about $150m worth of stock, while David Jones is offering big discounts in its mid-year sale.

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, WOOLWORTHS HOLDINGS LIMITED, PORTMANS PTY LTD, SABA, OROTONGROUP LIMITED – ASX ORL, DAVID LAWRENCE, CUE, CREDIT SUISSE (AUSTRALIA) LIMITED, WESFARMERS LIMITED – ASX WES, COLES GROUP LIMITED, KMART AUSTRALIA LIMITED, TOP RYDE SHOPPING CENTRE

Woolworths on the hunt for new non-executive directors

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Original article by Sue Mitchell
The Australian Financial Review – Page: 1 & 9 : 2-Jun-15

Boardroom renewal is on the agenda at Woolworths, as it seeks a replacement for Ian Macfarlane following his resignation as a non-executive director in March 2015. The retail giant has not ruled out making more than one board appointment. David Thomas of CLSA says Woolworths should select a candidate with retail experience. Meanwhile, Woolworths has rejected suggestions that it is also seeking a successor to CEO Grant O’Brien.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, CLSA AUSTRALIA PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, RESERVE BANK OF AUSTRALIA, TESCO PLC, KELLOGG (AUSTRALIA) PTY LTD, JETSTAR AIRLINES PTY LTD, BAIN AND COMPANY

Burson eyes Metcash auto

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Original article by Simon Evans
The Australian Financial Review – Page: 17 : 1-Jun-15

Australian-listed Burson Group aims to open four automotive parts stores in Western Australia in coming months, with the first earmarked for the Perth suburb of Malaga. Meanwhile, CEO Darryl Abotomey says the company is a potential buyer of Metcash’s automotive division, but he adds that it would only do so if the transaction made "economic sense". Metcash flagged the sale of the business in May 2015.

CORPORATES
BURSON GROUP LIMITED – ASX BAP, METCASH LIMITED – ASX MTS, AUTOBARN PTY LTD, MIDAS MUFFLERS, AUTOMOTIVE BRANDS GROUP PTY LTD, ULTRA TUNE AUSTRALIA PTY LTD, KMART TYRE AND AUTO, AUTOMOTIVE HOLDINGS GROUP LIMITED – ASX AHG, COVS PARTS PTY LTD, GENUINE PARTS COMPANY, REPCO CORPORATION LIMITED

Bang & Olufsen Australia sold to luxury watches group

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Original article by Simon Evans
The Australian Financial Review – Page: 21 : 27-May-15

Emerald Group Investments intends to expand the Bang & Olufsen brand after buying the Australia and New Zealand business. Bang & Olufsen currently operates 10 retail outlets in Australasia, and Emerald Group CEO James Kennedy has declined to comment on the sale price. Emerald Group boasts annual revenue of about $A40m, and owns the LK Boutique stores in Sydney and Melbourne, which sell upmarket watches and jewellery.

CORPORATES
EMERALD GROUP INVESTMENTS PTY LTD, BANG AND OLUFSEN (AUSTRALIA) PTY LTD, BANG AND OLUFSEN A/S, LK BOUTIQUE, CROWN MELBOURNE LIMITED, THE STAR, COSTCO WHOLESALE CORPORATION, WAL-MART STORES INCORPORATED

Home-brand products have a way to go with grocery buyers

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 21-May-15

A Roy Morgan Single Source survey has found that 47% per cent of Australians aged 14+ who are main grocery buyers say they will go out of their way for a bargain. The survey, which was carried out in the year to December 2014, also shows that 70 per cent of main grocery buyers stick to their favourite brands for most things they buy, and just 38 per cent buy more store-brand products than well-known brands. However, 63% of grocery-buyers who usually shop at Aldi say they buy more store-brand products than well-known brands, while 60 per cent are willing to go out of their way for a bargain.

CORPORATES
ROY MORGAN RESEARCH LIMITED, ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, AUSTRALIAN SAFEWAY STORES PTY LTD, FOODLAND AUSTRALIA LIMITED

Masters fails to stem tide of red ink

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 22-May-15

The Masters Home Improvement chain is expected to post a loss of at least $A200m for 2014-15. Deutsche Bank’s figures suggest that the hardware joint venture made a loss of $A66m in the March 2015 quarter and is losing some $A5.1m each week. Woolworths and US-based Lowe’s have invested $A3.07m in Masters so far, and recently invested an additional $A45m in the business. Lowe’s has a 33 per cent stake in the joint venture.

CORPORATES
MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, LOWE’S COMPANIES INCORPORATED, DEUTSCHE BANK AG, CITIGROUP PTY LTD, HYDROX HOLDINGS PTY LTD, COLES GROUP LIMITED, ALDI STORES SUPERMARKETS PTY LTD, HOME TIMBER AND HARDWARE