SUPERMARKETS – AUSTRALIA

Coles rings up winning sales growth

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Original article by Eli Greenblat
The Australian – Page: 13 & 16 : 27-Aug-25

Grocery giant Coles Group has posted a 2024-25 net profit of $1.079bn, which is 3.5 per cent lower than previously. However, sales rose by 1.8 per cent to $44.49bn for the full year, with stronger growth in sales during the second half. The group’s flagship Coles Finest private label brand recorded sales growth of 13.9 per cent for the financial year, well above growth in sales for branded products. CEO Leah Weckert notes that sales revenue rose by 4.9 per cent in the first eight weeks of the current financial year. Meanwhile, Coles’ liquor division has posted full-year earnings of $113m, which is 15 per cent lower than previously.

CORPORATES
COLES GROUP LIMITED – ASX COL

Coles laments $500m in sales lost to rivals

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Original article by Eli Greenblat
The Australian – Page: 13 & 16 : 4-Mar-25

Coles’ internal analysis suggests that competition from non-grocery retailers has cost it about $400m worth of sales in categories such as personal care and household products over the last four years. It is estimated that Coles, Woolworths, Aldi and independent grocery stores have lost about $500m in sales to pharmacies, hardware stores and online-only retailers such as Temu and Amazon. Coles aims to counter this by ramping up its investment in the ‘health and home’ product category. Woolworths CEO Amanda Bardwell also recently noted that the group’s growth in sales of non-food products has been below that of previous years.

CORPORATES
COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, TEMU, AMAZON.COM INCORPORATED

$140m Woolies wipe-out boosts Coles

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Original article by Eli Greenblat
The Australian – Page: 15 : 10-Dec-24

Woolworths has yet to determine the full cost of the industrial action at four of its distribution centres. The strike action was initially estimated to have cost it about $50m in lost sales, but this is expected to rise to around $140m. The resolution of the industrial dispute will result in a pay rise of 11 per cent over three years for the warehouse staff; the United Workers Union had initially sought an increase of 25 per cent. Meanwhile, rival Coles has enjoyed a sales boost due to the strike action, although it has had to put on extra staff at its supermarkets and warehouses to meet the increased demand.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW, UNITED WORKERS UNION, COLES GROUP LIMITED – ASX COL

Woolworths reaches enterprise agreement with striking union workers

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Original article by Duncan Evans, Liam Beatty
Herald Sun – Page: Online : 8-Dec-24

Woolworths has begun restocking its supermarkets’ shelves after securing a new enterprise agreement for employees at four distribution centres. The deal with the United Workers Union and the Shop, Distributive and Allied Employees’ Association has ended a 17-day strike that is estimated to have cost the grocery giant about $50m in lost sales. The SDA has advised that the warehouse workers will receive a pay rise of 12.84 per cent over three years, a $1000 up-front cash payment, a $500 up-front gift card and a $500 gift card for the next two years. Weekend penalty rates for shift workers will also be increased, while Woolworths has agreed to concessions regarding its controversial performance management framework.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW, UNITED WORKERS UNION, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION

ALP steps into Woolies dispute

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Original article by Ewin Hannan, Brendan Kearns
The Australian – Page: 5 : 4-Dec-24

Woolworths estimates that the strike action by distribution centre workers has cost it about $50m in lost food sales to date. Meanwhile, Workplace Relations Minister Murray Watt and staff from his department have held talks with Woolworths executives and United Workers Union officials in a bid to resolve the impasse that has led to empty shelves at Woolworths stores in Victoria and southern NSW. The 12-day strike has also affected supplies at liquor stores Dan Murphy’s and BWS, which are owned by Woolworths spin-off Endeavour Group.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW, AUSTRALIA. DEPT OF EMPLOYMENT AND WORKPLACE RELATIONS, UNITED WORKERS UNION, ENDEAVOUR GROUP LIMITED – ASX EDV, DAN MURPHY’S, BWS – BEER WINE SPIRITS

Aldi the most trust supermarket as Coles, Woolies fend off fake discount claims

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Original article by Danielle Long
The Australian – Page: 17 : 11-Oct-24

Research from Roy Morgan shows that Aldi is Australia’s most trusted supermarket brand in 2024, having risen from third place in 2023. Roy Morgan CEO Michele Levine says Aldi’s rise in the firm’s Trusted Brand Awards reflects factors such as the increased distrust of grocery giants Woolworths and Coles in the wake of recent scandals such as allegations of price gouging; Levine adds that consumers have responded positively to Aldi’s competitive pricing and commitment to quality. Woolworths and Coles are now the fourth and fifth most distrusted brands, according to Roy Morgan.

CORPORATES
ROY MORGAN LIMITED, ALDI STORES SUPERMARKETS PTY LTD, WOOLWORTHS SUPERMARKETS, WOOLWORTHS GROUP LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, COLES GROUP LIMITED – ASX COL

Coles outdoes Woolworths on several fronts

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Original article by Carrie LaFrenz
The Australian Financial Review – Page: 15 : 3-Sep-24

The latest financial results from grocery giants Coles and Woolworths show that the former is outperforming its larger rival on several key metrics. Coles is recording faster growth in sales, due to factors such as store promotions, the perception among consumers that it is a cheaper brand, and the ease of redeeming loyalty points. Coles is also narrowing the gap with Woolworths regarding gross margins, after focusing on stock losses and managing costs. Meanwhile, the share price of Coles has risen by nearly 20 per cent over the last 12 months, while Woolworths has shed 5.4 per cent.

CORPORATES
COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW

Suppliers say Coles has outperformed Woolies

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Original article by Carrie LaFrenz
The Australian Financial Review – Page: 17 : 23-Jul-24

A survey of 26 supermarket suppliers by investment bank UBS has found that the number who thought Coles outperformed Woolworths in the final quarter of the 2023-24 financial year more than doubled to 41 per cent. 19 per cent of suppliers felt Woolworths had performed better in the period, while 41 per cent said they had traded "about the same". Asked which supermarket they thought had gained the most market share since the start of the year, 59 per cent of suppliers said Aldi had, while 30 per cent said Coles had; just eight per cent said Woolworths had.

CORPORATES
UBS HOLDINGS PTY LTD, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD

Dutton’s retail break-up plan ‘madness’: Kennett

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Original article by Tom McIlroy
The Australian Financial Review – Page: 1 & 4 : 3-Jul-24

The Coalition proposes to introduce legislation that would force companies in certain sectors to divest assets if they are found to have abused their market power. The divestiture powers would specifically target grocery and hardware retailers with annual turnover of more than $5bn, which would include Coles, Woolworths and Bunnings. The proposed laws have been criticised by former Victorian Liberal premier Jeff Kennett and Business Council of Australia CEO Bran Black. The introduction of divestiture powers was also rejected by former Labor MP Craig Emerson in his recent review of the food and grocery code of conduct.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW, BUNNINGS GROUP LIMITED, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Four-day week for Woolworths workers

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Original article by Ewin Hannan
The Australian – Page: 3 : 8-May-24

The Shop, Distributive & Allied Employees’ Association has backed a proposal to enshrine the right to a four-day working week in a new enterprise agreement for Woolworths employees. The proposed deal would allow full-time staff to compress their 38-hour working week into four shifts comprising 9.5 hours each. Bernie Smith from the SDA says staff who opt for a four-day week would be required to work up to four weekend shifts over a four-week period. The enterprise agreement will cover about 130,000 workers, who will vote on the proposed deal in coming weeks.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION