RETAIL TRADE – AUSTRALIA

No retail rally after sales lift

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Original article by Blair Speedy
The Australian – Page: 17 : 4-Aug-14

The latest retailing sector turnover data to be issued by the Australian Bureau of Statistics are forecast to show an increase in seasonally adjusted terms of 0.3% for June 2014. While this would be an improvement from a 0.5% fall in May, investors are still likely to take a negative view on such stocks as many groups report slower earnings growth. Some listed retailers have already issued profit warnings, due in large part to warm winter weather. The first major retailer to report will be JB Hi-Fi on 11 August

CORPORATES
JB HI-FI LIMITED – ASX JBH, PACIFIC BRANDS LIMITED – ASX PBG, THE REJECT SHOP LIMITED – ASX TRS, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED – ASX DJS, CITIGROUP PTY LTD, AUSTRALIAN BUREAU OF STATISTICS

Growers grumpy over hidden fees as Woolies makes us eat our vegies

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Original article by Blair Speedy
The Australian – Page: 17 : 31-Jul-14

Scott Davidson, head of produce at Woolworths, says the recent fresh food promotion featuring celebrity cook Jamie Oliver lifted sales in the category by 7% per customer and store visit. Over the six-week period in June and July 2014 the supermarkets chain says it sold an extra four million kilograms of fresh fruit and vegetables. However AusVeg, the lobbying body for the producers, says many are unhappy at having had to contribute $A0.40 a crate to the cost of the marketing push

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, AUS VEG

Retailers ‘will lose out to Chinese’

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Original article by Blair Speedy
The Australian – Page: 18 : 29-Jul-14

Dominant supermarket chains Coles and Woolworths have been urged to raise their farmgate prices, or risk losing supply as primary producers instead export to the lucrative market in China. The warning has come from Federal Agriculture Minister Barnaby Joyce, who noted that the companies are selling white label milk for just $A1 a litre when consumers in China are prepared to pay $A7 or more. Joyce also said he fully backed a Federal Court case by the Australian Competition & Consumer Commission against Coles, over alleged unconscionable conduct in its relations with food sector suppliers

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, COLES GROUP LIMITED, AUSTRALIA. DEPT OF AGRICULTURE, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, FEDERAL COURT OF AUSTRALIA, ALDI STORES SUPERMARKETS PTY LTD, NORCO CO-OPERATIVE LIMITED, MURRAY GOULBURN CO-OPERATIVE COMPANY LIMITED

Big offer for Lew’s Country Road stake

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Original article by Sue Mitchell
The Australian Financial Review – Page: 11 : 22-Jul-14

Country Road executives have advised shareholders to accept Woolworths Holdings’ offer of $A17 per share. Businessman Solomon Lew has an 11.8 per cent stake in the retailer, and his support for the offer is crucial if Woolworths is to gain full ownership. An independent expert’s report by Lonergan Edwards & Associates has valued Country Road shares at between $A14.92 and $A16.22

CORPORATES
COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, LONERGAN EDWARDS AND ASSOCIATES LIMITED, DAVID JONES LIMITED – ASX DJS, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WITCHERY FASHIONS PTY LTD, MIMCO PTY LTD

Lew’s big win: DJs deal to go ahead

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 &20 : 18-Jul-14

Federal Court of Australia judge Kathleen Farrell on 17 July 2014 approved the takeover by South Africa’s Woolworths of department stores chain David Jones (DJs). Solomon Lew, a DJs stockholder with 9.9%, has struck a side deal with Woolworths, to accept the DJs bid if the suitor also buys his 11.8% in retailer Country Road to move to full ownership. Lew will gain $A212m. John Halley SC, on behalf of the Australian Securities & Investments Commission, told Farrell it was opposed to the collateral benefit aspect of the agreement, but would not block the takeover

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. TAKEOVERS PANEL

Woolies under pressure over Masters

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Original article by Sue Mitchell
The Australian Financial Review – Page: 20 : 16-Jul-14

Woolworths’ home improvements division posted a loss of $A139m in 2013, and financial market analysts expect the business to post higher losses in 2014 and 2015. Woolworths itself has forecast that the Masters hardware chain will achieve break-even status in 2016, but Goldman Sachs recently suggested that 2019 is more likely. There are also expectations that Woolworths’ 2013-14 financial results will include impairment charges related to the Masters business

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, LOWE’S COMPANIES INCORPORATED, HOME TIMBER AND HARDWARE, WESFARMERS BUNNINGS LIMITED, WESFARMERS LIMITED – ASX WES, MITRE 10 LIMITED, METCASH LIMITED – ASX MTS, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED

South Africans wrap up DJs

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Original article by Blair Speedy
The Australian – Page: 21-22 : 15-Jul-14

Gordon Cairns, chair of Australian-listed department stores chain David Jones (DJs), has announced that the takeover bid worth $A4 a share by South Africa’s Woolworths has been accepted. Support among investors was strong, with 50% of stockholders required to vote "yes" and the actual result being 89.6%. In terms of voted scrip, the 75% needed compares with an outcome of 96.8%. Entrepreneur Solomon Lew will sell his 9.9% holding into the scheme of arrangement and has abstained from the vote, meaning the deal can be ratified by the Federal Court on 17 July 2014. Lew will now also gain $A209m from the suitor for his interest of 11.8% in Country Road

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, WITCHERY FASHIONS PTY LTD, MIMCO DESIGNS PTY LTD, ASX LIMITED – ASX ASX

Coles to play banks at own game

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Original article by Jared Lynch
The Australian Financial Review – Page: 19 : 15-Jul-14

Coles will expand its product offerings in the financial services sector, with the introduction of personal loans. The grocery retailer expects to receive regulatory approval by the end of 2014, but Coles Finance director Rob Scott has declined to comment on the possibility that Coles could also seek a banking licence. The new products will be offered in partnership with GE Capital

CORPORATES
COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, GE CAPITAL AUSTRALIA, TESCO PLC, J SAINSBURY PLC, MARKS AND SPENCER PLC, MASTERCARD AUSTRALIA LIMITED, VISA INTERNATIONAL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

David Jones’ investors to vote

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Original article by Blair Speedy
The Australian – Page: 19 : 14-Jul-14

Stockholders in Australian-listed department stores chain David Jones (DJs) will vote on 14 July 2014 on the takeover bid worth $A4 a share by South African retailer Woolworths. It needs 50% of investors to approve it and 75% of stocks to be voted in favour, and may need to rely on entrepreneur Solomon Lew. He has built a stake of at least 9.9% in DJs, and has extracted a promise from Woolworths to also buy his 11.8% holding in Country Road. Woolworths has 88% of that entity. Lew has made no comment on which way he will vote, while the Australian Securities & Investments Commission may challenge the Country Road side deal in the Federal Court

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, PREMIER INVESTMENTS LIMITED – ASX PMV, JUST JEANS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, OWNERSHIP MATTERS PTY LTD

After conman, Myer hires well-known exec

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Original article by Blair Speedy
The Australian – Page: 21 : 11-Jul-14

Department stores chain Myer has appointed a new executive. Gary Williams has wide experience and is currently with the Westfield property group. He will take up the position in August 2014. Myer CEO Bernie Brookes said that Williams was not directly replacing Andrew Flanagan, who was sacked on his first day after the discovery that his resume was fraudulent. Brookes said that Williams will be involved with strategic development, while Flanagan’s role was to be financial management

CORPORATES
MYER HOLDINGS LIMITED – ASX MYR, WESTFIELD CORPORATION – ASX WFD, WOOLWORTHS LIMITED – ASX WOW, COCA-COLA AMATIL LIMITED – ASX CCL, PUMA AUSTRALIA, REEBOK AUSTRALIA, INDITEX SA, ZARA, TESCO PLC, VICTORIA POLICE