RETAIL TRADE – AUSTRALIA

More staff come forward in Super Retail legal case

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Original article by Carrie LaFrenz, Ayesha de Kretser
The Australian Financial Review – Page: 15 : 30-Apr-24

Harmers Workplace Lawyers has confirmed that it is acting for four female employees at Super Retail Group who are seeking compensation over alleged governance breaches, including an undisclosed relationship between CEO Anthony Heraghty and its former head of HR, Jane Kelly. Harmers has stated that more staff have come forward to join the action after Super Retail Group disclosed the relationship in an announcement on Friday, with the company stating that it expected two employees to bring a claim for between $30 million and $50 million alleging governance failures, including the non-disclosure of the romance between Heraghty and Kelly.

CORPORATES
SUPER RETAIL GROUP LIMITED – ASX SUL, HARMERS WORKPLACE LAWYERS

Saying it with flowers tops the $1 billion cash splash on Mum for 12 May

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Original article by Roy Morgan
Market Research Update – Page: Online : 26-Apr-24

Research from the Australian Retailers Association in collaboration with Roy Morgan shows that Australians are set to spend $995 million on Mother’s Day this year; this is up $70 million (or 7.5%) from 2023. Despite the increased spend, some 400,000 fewer people are set to buy Mother’s Day gifts this year, highlighting the impact of the cost-of-living crunch. The higher overall spend is due to a higher spend per person of $102 (up from $92 in 2023), reflecting inflationary driven price increases and indicating that those who are less affected by cost-of-living pressures are spending more. Flowers, alcohol, or an experience top the gifts for mothers and others. Continuing the trend in recent years, 19% of people who purchase a present will be gifting somebody other than their birth mother. This includes their partner, friend, mother-in-law, grandmother, sister or daughter. The ARA-Roy Morgan Snap SMS survey was conducted with an Australian-wide cross-section of 2,191 Australians aged 18+ from 3-5 April.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIAN RETAILERS ASSOCIATION

The Future of Retail: A Roy Morgan Business Address

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Original article by Roy Morgan
Market Research Update – Page: Online : 23-Apr-24

Roy Morgan’s Retail, Social and Consumer Trends Expert Laura Demasi presents a Roy Morgan Business Address on the consumer trends shaping Retail, as sales flatten amid the ongoing cost of living crunch. The Future of Retail Business Address explores how consumers are coping in this pressured environment: who is the hardest hit, how Australians are adjusting their spending, which cohorts still have spending power, and the surprise retailers winning in this environment. The Address also outlines Roy Morgan’s forecast for annual retail sales for 2024.

CORPORATES
ROY MORGAN LIMITED

Australia’s major supermarkets accused of purchasing properties to turf out independent stores

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Original article by Jonathan Barrett
The Guardian Australia – Page: Online : 12-Apr-24

The Senate inquiry into supermarket prices has been told that grocery giants Coles and Woolworths engage in land-banking to prevent smaller rivals from opening a store near their supermarkets. Grant Ramage, the CEO of Metcash’s food division, said the duopoly is also prepared to pay inflated prices to buy out rivals in order to stifle competition, while they have been known to buy retail properties that are tenanted by independent supermarkets and subsequently not renew their lease. Aldi Australia’s CEO Anna McGrath has told the inquiry that rival supermarket chains often reduce their prices when the Germany-based company opens a new store near their existing outlets.

CORPORATES
METCASH LIMITED – ASX MTS, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD

Retail insolvencies rise as cost-of-living pressures slash consumer spending

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Original article by Kate Ainsworth, Emilia Terzon
abc.net.au – Page: Online : 10-Apr-24

Data from the Australian Securities & Investments Commission shows that 502 businesses in the retail sector have gone into administration so far in 2023-24, compared with just 193 during the same period in 2021-22. Factors such as the cost-of-living crisis and high mortgage interest rates are weighing on consumer spending, with smaller retailers in particular bearing the brunt. National Retail Association CEO Rob Godwin expects more businesses in the sector to collapse in the final months of the financial year. He says the federal government’s budget in May should provide financial assistance for retailers, particularly small and medium-sized businesses.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, NATIONAL RETAIL ASSOCIATION LIMITED

Supermarket hit could rock us all

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Original article by Jess Malcolm, Geoff Chambers, Lydia Lynch
The Australian – Page: 4 : 9-Apr-24

The Australian Chamber of Commerce & Industry has expressed reservations about any push to make the food and grocery code of conduct mandatory rather than voluntary. ACCI CEO Andrew McKellar has responded to the release of Craig Emerson’s interim report on his review of the code of conduct by warning that excessive regulation could have "unintended consequences". Amongst other things, Emerson has recommended fining supermarkets up to 10 per cent of their turnover for breaches of the code. Meanwhile, Opposition leader Peter Dutton has described Emerson’s inquiry as a "Mickey Mouse review conducted by a Labor mate"; Emerson is a former federal Labor minister.

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Lew unveils ambitous Premier overhaul

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Original article by Eli Greenblat
The Australian – Page: 13 & 16 : 27-Mar-24

Premier Investments has posted a 2023-24 interim net profit of $177.2m, which is 1.7 per cent higher than previously. Sales rose by 2.9 per cent to $890m, while shareholders will receive a record half-year dividend of $0.63 per share. Meanwhile, chairman Solomon Lew has revealed plans to spin off the Smiggle stationery brand and the Peter Alexander sleepwear business into separately-listed companies in 2025. The proposed demerger of the two flagship plans follows a review of Premier Investments’ assets that was commissioned last year.

CORPORATES
PREMIER INVESTMENTS LIMITED – ASX PMV, SMIGGLE PTY LTD, PETER ALEXANDER SLEEPWEAR PTY LTD

Supermarket break-up powers called for

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Original article by Tom McIlroy, Ronald Mizen
The Australian Financial Review – Page: 7 : 19-Mar-24

The Greens want the Australian Competition & Consumer Commission to be given powers to apply for a court order to break up companies that abuse their market power. Greens senator Nick McKim says supermarkets are the focus of the proposed divestiture laws, although he emphasises that the ACCC could also use these powers to target companies in other sectors. Meanwhile, the Australian Retail Association has rejected claims that grocery giants Coles and Woolworths are price-gouging, contending that the duopoly’s sales and costs have increased much faster than their profits over the last five years.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN GREENS, AUSTRALIAN RETAILERS ASSOCIATION, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW

China’s Shein set to smash $1b sales in challenge to locals

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Original article by Nick Bonyhady, Carrie LaFrenz
The Australian Financial Review – Page: 13 : 13-Mar-24

Jarden’s head of research Ben Gilbert says Wesfarmers will need to invest in its Kmart and Target brands in order to compete with new online rivals such as Shein and Temu. Gilbert forecasts that Temu, Shein and Amazon will achieve combined sales of more than $7bn in 2024. Meanwhile, corporate filings show that Shein’s Australian arm posted a gross profit of $26m in 2023, while revenue totalled $812m; Roy Morgan estimates that Shein is on track to post annual sales of $1bn. Shein was founded in China but is now based in Singapore, while it is planning a US sharemarket listing.

CORPORATES
SHEIN, TEMU, JARDEN AND COMPANY, ROY MORGAN LIMITED, WESFARMERS LIMITED – ASX WES, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, AMAZON.COM INCORPORATED

Sweet spending spree on Easter treats as Australia’s population swells

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Original article by Roy Morgan
Market Research Update – Page: Online : 13-Mar-24

Despite cost-of-living pressures, Australian families will splash out on Easter treats this year, tipped to spend $2.05 billion on hot cross buns, easter eggs or other special food (up 23.5%); this is approximately $400 million more than in 2023. Research from the Australian Retailers Association (ARA), in collaboration with Roy Morgan, shows that 17.3 million Australians plan on buying Easter food and chocolate, up 1 million on a year ago. Despite the increased spend overall, most Australians plan on spending broadly the same amount as last year (63%), with almost a third planning to spend less (29%) and just 8% planning to spend more. Cementing Easter as a family occasion, the 18-34 age bracket will spend the most on treats at $800 million across the country, for an average spend of $136 per head. They are trailed by the 35-49 demographic, who will spend $560 million, or $122 per head. The ARA-Roy Morgan Snap SMS survey was conducted with an Australian-wide cross-section of 2,350 Australians aged 18+ from 23-28 February.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIAN RETAILERS ASSOCIATION