RETAIL TRADE – AUSTRALIA

Aldi fails to disclose tap and go charges

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Original article by Shaun Drummond
The Australian Financial Review – Page: 8 : 19-Aug-14

The Australian Securities & Investments Commission has ordered Aldi to take remedial action to display fees for contactless card transactions at the point of sale. An investigation by the corporate regulator found that Aldi had failed to disclose the fact that a surcharge of 0.5 per cent applies to payments that are made using so-called "tap and go" credit cards

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, RESERVE BANK OF AUSTRALIA, VISA INTERNATIONAL, MASTERCARD AUSTRALIA LIMITED

Popular Aldi threatens Woolworths, Coles duopoly

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Original article by Sue Mitchell
The Australian Financial Review – Page: 1 & 12 : 15-Aug-14

Aldi currently boasts annual sales of about $A5.3bn in Australia. A UBS report estimates that Aldi could potentially lift its sales to $A9.3bn in the next five year. The firm forecasts that the annual sales of Coles, Woolworths and Metcash could be slashed by $A250m to $A350m by 2019 due to the growth of Aldi. Ben Gilbert of UBS notes that Aldi could achieve even stronger growth if it addresses issues such as the quality of its fresh food and long queues at checkouts, which are negatively affecting consumer sentiment toward the group

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, UBS HOLDINGS PTY LTD, COLES GROUP LIMITED, WOOLWORTHS LIMITED – ASX WOW, METCASH LIMITED – ASX MTS, TESCO PLC, J SAINSBURY PLC, ASDA GROUP PLC, MORRISONS, LIDL GMBH & CO KG, ROY MORGAN RESEARCH LIMITED

Drop in tablet sales proves a bitter pill for JB Hi-Fi

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Original article by Bridget Carter
The Australian – Page: 19 : 12-Aug-14

Electronic goods retailer JB Hi-Fi has announced a 2013-14 full-year net profit increase of 10.3% to $A128.4m, as had been tipped. Turnover grew 5.3% to reach $A3.48bn, and was up 2% on a like-for-like basis. However the company also conceded that revenue declined 5.5% year-on-year during the month of July 2014, as consumers bought fewer tablet computers. CEO Richard Murray said new devices would compensate for this during the course of 2014-15. The 12-month distribution is $A0.84, up 16.7%, and on 11 August the stock fell $A1.53 to close at $A17.84.

CORPORATES
JB HI-FI LIMITED – ASX JBH, JB HI-FI HOME, MOELIS AND COMPANY

Kennett to steer Coles supplier charter

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Original article by Richard Gluyas
The Australian – Page: 20 : 7-Aug-14

John Durkan, CEO of dominant supermarkets chain Coles, has announced a new charter to safeguard the interests of its suppliers. The initiative is in addition to the ongoing talks by Coles, rival Woolworths and the Australian Food & Grocery Council on a code of conduct for the sector, which have entered a consultation period to last until the end of August 2014. The Australian Competition & Consumer Commission had accused Coles of forcing small food manufacturers into contributing $A16m to the cost of a supply chain overhaul. The new charter will be overseen by ex-Victorian premier Jeff Kennett

CORPORATES
WESFARMERS LIMITED – ASX WES, COLES GROUP LIMITED, WOOLWORTHS LIMITED – ASX WOW, AUSTRALIAN FOOD AND GROCERY COUNCIL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, FEDERAL COURT OF AUSTRALIA

Market power laws ‘ludicrous’

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Original article by Phillip Coorey, Nassim Khadem
The Australian Financial Review – Page: 1 & 4 : 6-Aug-14

The National Press Club has heard from Wesfarmers CEO Richard Goyder, also chair of the Business 20 forum advising the Australian Government. His company owns major retailers Coles and Bunnings, and he rejected plans to extend section 46 of the Australian Consumer Law to small business operators in order to protect them against market dominance by large corporations. Goyder threatened that his group’s tax payments of $A1.5bn per annum and employment of 200,000 local jobs could be reduced, if it adopted the profit shifting strategies of overseas-based rivals such as Aldi or CostCo

CORPORATES
WESFARMERS LIMITED – ASX WES, COLES GROUP LIMITED, BUSINESS 20 (B20), GROUP OF TWENTY (G-20), AUSTRALIA. DEPT OF INDUSTRY, ALDI STORES SUPERMARKETS PTY LTD, COSTCO WHOLESALE AUSTRALIA PTY LTD, WESFARMERS BUNNINGS LIMITED, NATIONAL PRESS CLUB (AUSTRALIA), BORAL LIMITED – ASX BLD, WOOLWORTHS LIMITED – ASX WOW, HIGH COURT OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION

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