SUPERMARKETS – AUSTRALIA

Coles prepares to milk consumer taste for branded dairy products

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 : 9-Aug-16

Coles will launch a new milk brand in the third week of August 2016. The new product will be priced higher than the supermarket chain’s private label milk, which costs $A1.00 per litre. Coles intends to divert $A0.20 a litre from sales of the new product to a hardship and innovation fund. Victorian dairy farmers, who are supposed to be the beneficiaries of the Farmers Fund, see the initiative as a marketing stunt. They say they would prefer being paid more for milk.

CORPORATES
COLES SUPERMARKETS AUSTRALIA PTY LTD, MURRAY GOULBURN CO-OPERATIVE COMPANY LIMITED, WOOLWORTHS LIMITED – ASX WOW, FARMERS FUND, FARMERS OWN, NURTURE FUND, AUSTRALIAN DAIRY FARMERS’ LIMITED, DAIRY AUSTRALIA, VICTORIAN FARMERS FEDERATION

New Woolies CEO shuts store doors on growth strategy

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Original article by Sue Mitchell
The Australian Financial Review – Page: 1 & 16 : 26-Jul-16

Shares in Woolworths closed 8.2 per cent higher at $A24.30 on 25 July 2016, after the retail giant unveiled a restructuring program. Woolworths’ financial results for fiscal 2016 will be hit by restructuring costs in excess of $A4bn, while its EBIT will fall sharply. The turnaround strategy includes the closure of underperforming stores, the retrenchment of 500 employees at its head office and the sale of EziBuy. CEO Brad Banducci says Woolworths could also consider further asset sales in the future in order to retain its investment grade credit rating.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, EZIBUY, BIG W DISCOUNT STORES, AUSTRALIAN LEISURE AND HOSPITALITY GROUP LIMITED, THE QUANTIUM GROUP PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, HOME TIMBER AND HARDWARE, CREDIT SUISSE (AUSTRALIA) LIMITED, PERPETUAL INVESTMENTS

Does anyone even notice shopping trolley ads and supermarket-docket specials anymore?

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 14-Jul-16

A Roy Morgan Single Source survey has found that 10.8 per cent of Australians aged 14+ (or just over 2.1 million people) agree that "I usually notice the advertisements on shopping trolleys when I go grocery shopping". The survey, which was carried out in the year to March 2016, also shows that 22.0 per cent (4.3 million people) reported that "I often take advantage of the special offers on the back of my supermarket shopping docket". Meanwhile, 18.8 per cent of Australians aged 25-34 usually notice shopping-trolley advertising, compared with just 5.7 per cent of those aged 65+.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Aldi closes in on giants as profitability grows

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 31-May-16

UBS has forecast that Aldi will record annual growth in grocery sales in Australia of 15 per cent over the next three years. This is 4-5 times higher than the sector’s growth rate overall. Ben Gilbert of UBS forecasts that Aldi’s share of the national grocery market will exceed 10 per cent by 2019-20, compared with about seven per cent at present. He believes that the discount grocery chain will soon reach a "tipping point" in terms of its share of consumers’ main grocery shop.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, UBS HOLDINGS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, METCASH LIMITED – ASX MTS, LIDL GMBH & CO KG

Woolies hit by ratings downgrade

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Original article by Sue Mitchell
The Australian Financial Review – Page: 23 & 32 : 5-May-16

Standard & Poor’s has reduced the long-term credit rating of Woolworths from "BBB+" to " BBB". S&P had previously downgraded the Australian retail giant’s credit rating in August 2015. Rival ratings agency Moody’s will also review its "Baa2" rating on the stock, having downgraded it from "Baa1" in March 2016. The bearish sentiment follows Woolworths’ disappointing financial results for the March quarter. Analysts in turn have reduced their earnings forecasts for 2016 and 2017.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, STANDARD AND POOR’S CORPORATION, MOODY’S INVESTORS SERVICE INCORPORATED, DEUTSCHE BANK AG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, JP MORGAN AUSTRALIA LIMITED, BIG W DISCOUNT STORES, ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD

Why Aldi’s red-hot on snow gear segment

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Original article by Eli Greenblat
The Australian – Page: 19 & 22 : 27-Apr-16

Discount supermarket chain Aldi has become Australia’s largest retailer of skiwear and snow clothing, according to local CEO Tom Daunt. Aldi has launched a separate website for ski clothing, with the aim of attracting shoppers on higher incomes who would not usually visit one of its stores. Aldi currently boasts nine stores in South Australia, and Daunt says the group is pleased with its initial success in the state. Its first store in Western Australia will open later in 2016.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, SNOWSPORTS INDUSTRIES OF AUSTRALIA

Supermarket sweep: ALDI’s share of the Aussie market still rising

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 15-Apr-16

A Roy Morgan Single Source survey has found that ALDI held 12.1 per cent of the total supermarket market as of December 2015, compared with 11.6 per cent in March 2015. Although Woolworths retains the largest market share of 37.3 per cent, this has declined from 38.5 per cent since our last report. Meanwhile, its bitter rival Coles Group is narrowing the gap, having increased its share from 31.8 per cent to 32.5 per cent over the same period. IGA is relatively stable with a 9.7 per cent share.

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

Woolworths needs to fix more than its Homebrands

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Original article by Sue Mitchell
The Australian Financial Review – Page: 11 : 30-Mar-16

Marketing Focus’s Barry Urquhart says Woolworths will need to market a change in branding for its entry-level private-label products in the same way it markets national brands. Woolworths intends to phase out the Homebrand name in favour of Essentials, in a bid to counter perceptions that the private-label products of rival grocery chains are of better quality. Melbourne Business School’s Mark Ritson says Woolworths should also seek to reposition its other private-label brands.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MARKETING FOCUS PTY LTD, MELBOURNE BUSINESS SCHOOL, PRINCIPALS, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD

Woolworths turns back on Homebrand

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 29-Mar-16

Australian-listed Woolworths will drop the Homebrand name for its entry-level range of private label products. The branding will be phased out in favour of the similarly-priced Essentials brand, in order to counter the widely-held view that the generic products of rivals Coles and Aldi offer better quality. Homebrand was launched in 1983, and currently features a much broader range of products than the Essentials range. About $A1.4bn worth of Homebrand products are sold each year.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, CAPILANO HONEY LIMITED – ASX CZZ, BEECHWORTH HONEY

Coles slammed over pay rorts

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Original article by Michael Owen
The Australian – Page: 4 : 10-Mar-16

Australia’s Fair Work Ombudsman Natalie James has criticised Coles for failing to ensure that supermarket trolley collectors employed by sub-contractors were being paid their full wages. She says large companies can expect to be held accountable for wage exploitation in all levels of the supply chain. The FWO has successfully prosecuted two trolley collection businesses that underpaid staff in Adelaide. Coles has also agreed to provide the employees with substantial back pay.

CORPORATES
COLES SUPERMARKETS AUSTRALIA PTY LTD, AUSTRALIA. FAIR WORK OMBUDSMAN, FEDERAL COURT OF AUSTRALIA, STARLINK OPERATIONS GROUP PTY LTD