SUPERMARKETS – AUSTRALIA

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

Farmers cry over Woolies milk

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Original article by Jared Lynch
The Australian Financial Review – Page: 22 : 28-May-15

The Queensland Dairyfarmers’ Organisation notes that 130 farmers in the state have left the industry since Coles and Woolworths introduced deep discounts on fresh milk in 2011. Meanwhile, Dairy Australia reports that milk production in Queensland fell by 5. 9 per cent in the year to April 2015, although national production rose by 2.9 per cent. Woolworths argues that a number of factors affect the farmgate price of milk.

CORPORATES
QUEENSLAND DAIRYFARMERS’ ORGANISATION LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, DAIRY AUSTRALIA, AUSTRALIAN DAIRY FARMERS’ LIMITED, AUSTRALIAN FOOTBALL LEAGUE, BRISBANE LIONS FOOTBALL CLUB, GOLD COAST FOOTBALL CLUB LIMITED

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

Woolworths faces $1b hit from price cuts

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Original article by Sue Mitchell
The Australian Financial Review – Page: 27 : 20-May-15

Morgan Stanley estimates that Aldi’s private-label grocery products cost 27 per cent less than Woolworths’ Select brand and six per cent less than Coles Group’s home brand. However, Aldi products cost 21 per cent more than Woolworths’ entry-level Homebrand. Tom Kierath of Morgan Stanley warns that Woolworths’ earnings could fall by between 5.09 per cent and 33 per cent if it reduces the prices of its private-label products to boost its competitiveness.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, ALDI STORES SUPERMARKETS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD

Investors push for Corbett

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Original article by Sue Mitchell
The Australian Financial Review – Page: 25 : 14-May-15

Roger Corbett has declined to comment on a push by Woolworths shareholders for him to take up the role of chairman. Corbett was CEO from 1999 to 2006, and he has worked in the retail sector for more than four decades. Some shareholders argue that Corbett’s expertise is needed to turn around Woolworths’ flagging performance. Wesfarmers recently announced that former CEO Michael Chaney will become chairman later in 2015.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, FAIRFAX MEDIA LIMITED – ASX FXJ, MAYNE PHARMA GROUP LIMITED – ASX MYX, HOSPIRA PTY LTD, ABERDEEN ASSET MANAGEMENT LIMITED, BIG W DISCOUNT STORES, ALDI STORES SUPERMARKETS PTY LTD, WAL-MART STORES INCORPORATED, AUSTRALIAN LEISURE AND HOSPITALITY GROUP LIMITED, FOODLAND ASSOCIATED LIMITED, TESCO PLC, KELLOGG COMPANY

What makes a supermarket super?

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 13-Apr-15

A Roy Morgan Single Source survey has found that 55.8 per cent of Australians aged 14+ nominated ‘high standards of food safety’ as one of the factors that matter most to them when buying groceries at a supermarket. The survey, which was carried out in the year to December 2014, also shows that 55.5 per cent nominated a location ‘close to home’, followed by ‘good value’ (54.1 per cent) and ‘convenient trading hours’ (52.6 per cent)

CORPORATES
ROY MORGAN RESEARCH LIMITED

Woolworths advised to cut everyday prices in grocery war

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 7-Apr-15

Price competition between Woolworths, Coles and IGA is escalating. UBS states in a new report that the level of intensity in competition between Australian supermarket chains is rising, which suggests that an all-out price war is likely to erupt. UBS advises Woolworths to protect its market share by reducing the prices of popular products and cutting the number of products on promotion

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, INDEPENDENT GROCERS OF AUSTRALIA, METCASH LIMITED – ASX MTS, ENERGIZER AUSTRALIA PTY LTD, CADBURY AUSTRALIA LIMITED, KIRKS FINE FOODS, ALBERT HEIJN, KONINKLIJKE AHOLD NV, UBS HOLDINGS PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, SAFEWAY INCORPORATED, KROGER COMPANY, TESCO PLC, J SAINSBURY PLC, ASDA GROUP PLC, WESFARMERS LIMITED – ASX WES

Retailers urged to grill recalcitrant or disloyal shoppers

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

AT Kearney estimates that corporate expenditure on "big data" will top $US114bn ($A147.6bn) by 2018. However, AT Kearney principal Ian St-Maurice notes that most companies are not satisfied with the return on this investment. St-Maurice says retailers such as Coles and Woolworths should focus on improving their service to customers who shop at their stores regularly, and suggests supplementing big data with consumer surveys and focus groups, particularly for people who shop elsewhere

CORPORATES
AT KEARNEY INCORPORATED, WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, MYER HOLDINGS LIMITED – ASX MYR

Supermarkets cut to the chase

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Original article by Sue Mitchell
The Australian Financial Review – Page: 16 : 6-Mar-15

Australian supermarket groups’ food and liquor sales were 0.7 per cent lower in January 2015. The sector recorded sales growth of just 2.2 per cent in year-on-year terms. Meanwhile, the four major grocery retailers all plan to open new stores in 2015, prompting analysts to warn that the new stores will gain sales at the expense of established stores. Aggressive price discounting due to slowing consumer spending is also adversely affecting the supermarket chains’ margins

CORPORATES
COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, MORGAN STANLEY AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, MOODY’S INVESTORS SERVICE INCORPORATED, LIDL GMBH & CO KG

Woolies’ supermarket growth revised

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Original article by Sue Mitchell, Matthew Cranston
The Australian Financial Review – Page: 17 : 11-Feb-15

Shares in Shopping Centres Australasia Property Group have risen by 15 per cent so far in 2015. However, the listed property trust has reported that growth in sales at supermarkets in its shopping centres slowed to 4.2 per cent in the December 2014 quarter. Some analysts believe that this may have implications for the sales growth of grocery giants Coles and Woolworths, which will report their results later in February

CORPORATES
SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP – ASX SCP, WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, UBS HOLDINGS PTY LTD, ALDI STORES SUPERMARKETS PTY LTD