News

4 Nov, 2020
"They were all terrible": Honey Birdette to disrupt swimwear market
SOURCE:
Ragtrader
Ragtrader

Intimate apparel retailer Honey Birdette has ventured into the swimwear space.

The retailer has released a capsule range of swim pieces, with briefs starting at $79.95 and sets peaking at $249. 

Honey Birdette founder Eloise Monaghan said the range will disrupt the traditional swim market. 

"I went shopping and I just couldn't find a swimsuit I liked," she said.

"I went into several retailers and they were charging $100 just for a swimming top and they were all terrible."

The range features black, red and tiger print garments embellished with gold hardware. 

"This is about putting the sex back into swimwear. The prints out there at the moment - oh my God - what's with all the Fijian flowers? No-one's thinking about it," Monaghan said.

"No-one's putting detail into it, it's just churn and burn. Our range has those wet sexy looks that can control certain aspects of the body, and you can be confident in going from Bondi to a bar."

Details on the chlorine and salt water resistant microknit garments include gold eyelets and fox medallions. 

"We wanted to do something that was fairly decadent with big custom-designed buckles. Something that feels like HB but was designed to be seen rather than just being a functional piece," Monaghan said.

"The high bikini line is huge at the moment, but we wanted some control with it as well so we've used some fairly structural fabrics."

Honey Birdette briefly released a swimwear range previously, with Monaghan confirming the new venture has been better planned. 

"We didn't spend enough time on it last time, and it really takes 12 months to get the technical and the testing right," she said.

"We just went too quickly and I went too James Bond with it. There was too much neoprene, and it's a much lighter fabric palette these days."

She said the brand is keen to experiment with new product categories. 

"One day, swimwear for us could even be a whole new store concept with water running down the changeroom walls behind glass. But at the moment, it fits quite well within Honey Birdette."

And as for the demographic the new range will cater to, Monaghan said it's fluid.

"I don't think you can ever put an age on HB. I always get 'who's your demographic?' but I don't actually believe in demographics anymore," she said.

"The Honey Birdette customer can be an 82-year-old woman or a 17-year-old, a gay man or a transsexual. Our customers are so varied."

4 Nov, 2020
Myer board, CEO in Lew's sights after chairman resigns
Financial Review

Near the end of a horror year marked by the coronavirus pandemic, Myer is facing more disruption after billionaire retailer Solomon Lew forced chairman Garry Hounsell to fall on his sword and called on the entire board to step down or be sacked.

Mr Hounsell resigned hours before the annual meeting on Thursday after Mr Lew's Premier Investments, which owns 10.8 per cent of the stock, and fund manager Geoff Wilson's Wilson Asset Management (WAM), which owns 7.8 per cent, indicated they would vote against his re-election.

Mr Hounsell's resignation was a major victory for Mr Lew, who has been attempting to take control of the board since Premier bought a 10.8 per cent stake at $1.15 a share three years ago. The shares have fallen to 22¢.

Unappeased, Mr Lew said Mr Hounsell's ousting was a signal to the entire Myer board – including chief executive John King – that its time was up and directors should step aside or face being kicked out at an extraordinary general meeting.

"Garry Hounsell’s resignation ahead of today’s Myer AGM is the 'green shoot' that Myer shareholders have long been waiting for," Mr Lew said.

Myer also suffered another strike against its remuneration report, with 33.6 per cent of shares voted against it. The retailer incurred a second strike against its remuneration report in 2018, but avoided a board spill, and narrowly avoided a third strike in 2019.

JoAnne Stephenson, a former KPMG partner who joined the board four years ago, has been appointed acting chairman while a global search takes place to find a new chairman.

This will now allow Myer to benefit from clear air following a challenging period for the company.

— Geoff Wilson, Wilson Asset Management

However, Mr Lew said a worldwide search was a waste of shareholders’ time and money and he would consult with other shareholders to put together a new board with a majority of independent directors and an independent chairman.

"Myer is an Australian icon and it requires a board with proven Australian retail credentials and commercial experience, including key skills in property, information technology, e-commerce and logistics," he said.

Premier will seek to have at least one representative on the board, in line with its holding. Mr Lew's previous "dream team" consisted of former Myer Grace Bros managing director Terry McCartney and former UBS banker Tim Antonie – both of whom are Premier Investments non-executive directors –as well as Stephen Sewell, the former CEO of shopping centre owner Federation Centres.

The question now is whether Mr King and other directors will resign or whether Mr Lew will have to call an EGM and rally enough shareholder support for a board spill.

Mr Wilson said he did not support Mr Hounsell's re-election because Myer needed a circuit breaker but dismissed suggestions he too had lost faith in Mr King. WAM had no current plans to support an EGM.

"We are supportive of the Myer management team," he said. "We voted for the REM report and the granting of performance rights for Mr King."

Mr Wilson, who recently called on the retailer to shrink its board and directors fees, has been a vocal supporter of Myer in the past and had teamed up with former shareholder Investors Mutual to thwart Mr Lew's attempts to roll the Myer board in 2018. However, he had second thoughts about Mr Hounsell's re-election.

"This will now allow Myer to benefit from clear air following a challenging period for the company," he said.

Ms Stephenson said Mr Lew's campaign would be damaging for customers, the Myer brand and shareholders – "what Myer needs now more than ever is stability".

Myer shares fell 6 per cent to 22.5¢, suggesting that shareholders believe the retailer is facing yet another period of disruption.

Ms Stephenson said it was essential that Mr King and the management team were able to focus on the business during the peak trading period between Black Friday and the January stocktake sale.

Mr King defended his Customer First turnaround plan, saying it was the right plan but needed to be accelerated, re-sequenced and expanded to enable Myer to capitalise on opportunities in a COVID-normal world.

Myer was in new talks with landlords to reduce floor space by at least another 60,000 square metres after locking in similar reductions. About 21 stores could close over the next eight years.

Mr King said Myer was well-stocked for Christmas and its online business continued to grow strongly after jumping almost 90 per cent in the July-half. Online sales had grown even faster since July and he said they would soon be a $1 billion business.

He also dismissed reports that Myer had $340 million of net debt and risked going into administration, saying it was net cash positive, and a $340 million financing facility was an overdraft to meet its funding needs during peak trading periods.

"We believe the business is on the right footing for a new COVID-normal retail world."

Several shareholders at the AGM asked why Myer was not prepared to work with Mr Lew and Premier, and tap their expertise.

Ms Stephenson said the board was prepared to work constructively with shareholders when there was a positive intent to create value for them.

30 Oct, 2020
Super Retail flags multimillion online investment as sales skyrocket
SOURCE:
The Age
The Age

Super Retail Group is pumping more money into beefing up its online capabilities as the retailing collective prepares to better tackle the rising tide of digital-only sales.

In a trading update ahead of its annual general meeting on Wednesday, Super Retail said online sales had grown 132 per cent across its four brands for the first quarter of the 2021 financial year. Super Retail operates Supercheap Auto, Rebel Sport, BCF and Macpac.

As a result, the company told investors it now expects its capital expenditure for the year to be $100 million, with much of it focused on increasing online capabilities.

"The dynamic growth we have seen in our digital sales, through both click & collect and home delivery, has reinforced our conviction in our omni-retail business strategy," chief executive Anthony Heraghty said.

Super Retail’s shares ended Wednesday's session 4.8 per cent higher at $11.69 following the update.

Online retail has boomed amid the COVID-19 pandemic. Digital sales at each of Super Retail's brands have more than doubled since the end of June.

Total sales, which include in-store, rose 25 per cent across the group for the same period despite 94 stores being closed through Melbourne’s second lockdown. Sales were positive across all brands bar Macpac, which fell 2 per cent due to being "heavily impacted" by the lockdown.

While the company did not provide any update on its earnings, Mr Heraghty said a 2 per cent jump in gross margins, thanks to a reduction in discounting, had boosted Super Retail's bottom line.

"Our considered approach to promotional activity in response to strong levels of consumer demand - to help manage inventory in the leadup to Christmas and optimise gross margin - and the substantial fixed component of our cost base means that revenue growth has flowed meaningfully through to the bottom line," he said.

Despite the bullish trading update, the company only narrowly avoided a 'first strike' against its remuneration report at Wednesday's AGM. A total of 17.18 per cent of investors voted against the report, just shy of the 25 per cent required.

Proxy firm ISS had advised its clients to vote against the report due to excessive short-term bonuses it awarded to Mr Heraghty, especially considering Super Retail's $6.5 million claimed in JobKeeper. It also took issue with the lack of specific hurdles required for the awarding of bonuses.

Investors also protested the awarding of 239,440 performance rights to Mr Heraghty, with 20.9 per cent voting against the proposal. ISS labelled the grant as "discretionary and less-than-rigorous" and questioned its grant price of just $7.19.

30 Oct, 2020
GlamCorner receives $12 million funding boost
SOURCE:
Ragtrader
Ragtrader

GlamCorner has closed a $12 million series B funding round to accelerate growth and operations.

The fashion-rental business will use the funding to realise its dream of becoming the 'Netflix for fashion,' allowing customers to have access to an endless online wardrobe for a monthly subscription fee. 

GlamCorner will invest in its collection, expanding it from 28,000 articles of clothing to over 60,000 articles and will introduce new product lines and brands. 

The business will also expand its fulfilment and distribution footprint which will include a significantly larger warehouse and fulfilment centre, garment care, laundry operation and logistics teams.

The new laundry will be designed to preen and clean up to 250 tonnes of clothing per month. 

GlamCorner COO and co-founder Audrey Khaing-Jones said that the business is thrilled to reach this milestone. 

"We have been working towards this moment at GlamCorner for eight years now — the moment fashion rental becomes an everyday part of our customer’s wardrobe.

"We’re so excited to offer our customer a better deal and via a fulfilment and logistics capability large enough to realise our ambition to be an Endless Online Wardrobe for every woman in the country," she said. 

The business will invest in its growing subscription box rental service ('Netflix for fashion') similar to US company Rent the Runway.

This investment will see GlamCorner launch exclusive products in collaboration with local and international designer labels - amounting to the 'Netflix Originals' of fashion rental. 

GlamCorner's tech-platform and team will also receive a funding boost with the business set to invest in a native iOS app, which is currently in development, as well as further fulfillment automation and systems. 

The investment round was led by family-owned, responsible and sustainable investment group, Treïs. 

Airtree Ventures, Giant Leap Fund, Marshall Investments and Silicon Valley-based Partners For Growth have also doubled down on their previous investments in the company.

Peter Gammell and MediaCap Fund are new investors in the oversubscribed round, with this round bringing GlamCorner’s total funding to date to $18 million from some of Australia’s leading investors in this space.

"We are delighted to welcome such high-quality investors on board for our Series B who share our vision and see the scale of the opportunity in front of us," Khaing-Jones said. 

"Having the backing and endorsement of a family owned responsible and sustainable investment Group such as Treïs exemplifies our goal to create a generational shift in fashion consumption," she said. 

GlamCorner offers access to global and Australian leading designer brands including Zimmerman, KITX, Camilla & Marc, Thurley and Ginger & Smart.

30 Oct, 2020
JB Hi-Fi sales surge into new year
Financial Review

JB Hi-Fi boss Richard Murray has sought to temper expectations for the high flying retailer, saying he does not expect a continuation of the surging double-digit sales achieved in the first quarter for the remainder of the financial year.

The $5.4 billion company said at the annual meeting on Thursday that sales in the Australian business jumped 26.7 per cent in the first three months of fiscal 2021, while home appliances chain, The Good Guys, gained 30.9 per cent.

 

JB Hi-Fi boss Richard Murray says he is sticking with the top job for some time yet, after a shareholder asked about his retirement plans.  Eamon Gallagher

This comes after a record June quarter, underpinned by spending from consumers flush with cash from JobKeeper subsidies, superannuation withdrawals and international travel refunds.

Mr Murray told The Australian Financial Review that Australia's largest consumer electronics retailer had come off a very strong trading period but it was unlikely to be repeated.

"We are excited by customers getting back into store in Melbourne," he said.

"With Australians holidaying at home this year, and the money spent overseas normally, while we don't necessarily expect the numbers over the last six months to continue in perpetuity, we are reasonably confident as we head into Christmas."

Closed stores in Victoria

Investors had sold the stock down 6.7 per cent to $47.12 shortly befoe the close of trading.

JB Hi-Fi was forced to close 67 stores in Victoria when stage four lockdown restrictions came into force on August 6. But it has been using shops as "dark stores" to fulfil online orders, which boomed as locked-down consumers upgraded TVs, computers and appliances.

Mr Murray said despite store closures in Melbourne, he was happy with the near 28 per cent jump in same store sales growth at JB Hi-Fi.

All stores in metro Melbourne threw open their doors to customers on Wednesday after the Victorian government finally relaxed stay-at-home rules.

Sales in New Zealand did not fare as well, falling 2.5 per cent in the first quarter, compared with 3.8 per cent growth a year ago. However, the first-quarter result was an improvement on the prior quarter when revenue fell 5.7 per cent after being hit by the store closures.

Mr Murray said the company's online businesses had continued to scale and meet the needs of its customers. He skipped sales guidance for the full year due to uncertainty arising from COVID-19.

Mr Murray told the Financial Review he has no plans of stepping down from the top job any time soon, after a shareholder asked about his retirement plans.

"I love what I do. I'm 44 years old. I'm really proud of what we have achieved in the last six years and look forward to many years to come," he said.

Protest vote

Stephen Goddard, who chaired the AGM for the first time, told investors the board remained focused on building long-term shareholder value.

He noted that since its ASX listing in October 2003, JB Hi-Fi shares had achieved compound annual growth of 21.9 per cent – more than six times the 3.7 per cent growth in the ASX 200 Accumulation Index over the same period.

Earnings per share have grown at a compound annual rate of 21.2 per cent and the dividend per share compound annual growth has been 22.7 per cent.

Former Big W executive Melanie Wilson, who was elected to the board for the first time, said she would buy shares in JB Hi-Fi this year.

Fellow director, Beth Laughton, was re-elected. The remuneration report was passed without issue, but investors made a strong protest vote against the granting of restricted shares to Mr Murray, with 20.38 per cent of votes cast against the item.

Mr Goddard said one of the proxy advisory firms had recommended against voting in favour of the granting of shares, but had backed the pay report.

30 Oct, 2020
The boom in sales and e-commerce during the pandemic has led to big gains for some retail bosses in this year's AFR Rich List
Business Insider Australia

When the ship steadies from the coronavirus pandemic and we start returning to some semblance of normality, retail is one of the sectors which will change permanently.

The advent of lockdowns and social distancing saw Australians accelerate a long trend toward e-commerce and online retail. According to research by Deloitte, Australia enjoyed a $4 billion e-commerce boom during the pandemic, with online small businesses seeing a boon from the country’s supercharged online spending habits.

Of course, it’s not the small business strivers who end up emblazoned on the glossy pages of The Australian Financial Review’s 2020 Rich List.

The Rich List, which lands in full on Friday, has seen big gains for Australia’s e-commerce barons, who have profited off the coronavirus bump.

Ruslan Kogan, founder and CEO of Kogan, has reentered the Rich List after falling off it in 2019 thanks to a low share price at the time. Following vigorous growth as entertainment-starved, locked down Australians turned to online retailers to get their fix – Kogan’s sales were up 39.3% compared to the 2019 financial year – Ruslan’s net wealth currently sits at $575 million.

Similar boons went to Harvey Norman boss Gerry Harvey, who saw his wealth surge by 35% to $2.57 billion. Though Harvey Norman is best known as a bricks-and-mortar retailer, it too capitalised on e-commerce when its stores shut down nationally, and then again in Melbourne.

The company reported a 7.6% increase in total revenue and a 19.4% jump in net profit, which Harvey said was the best results he’d seen in over 60 years of retailing. Of course, the famously ornery executive was quick to dismiss the role of e-commerce, despite not breaking it out in the company results.

“People get out there and talk about how [online is] going to take over all the sales, and it’s going to be 70 per cent of refrigerator sales or something, and I said that’s a con, and I still maintain it’s a con,” he told the Sydney Morning Herald.

Either way, he’s done well for himself out of the pandemic – a fact which got him in social media hot water back in March when he celebrated that fact while dismissing the seriousness of the virus.

The middlemen of the e-commerce world also saw big gains. Afterpay founder Nick Molnar – who became Australia’s youngest self-made billionaire after the buy now, pay later company’s remarkable share rally – now sits at number 50 on the Rich List with a net worth of $1.86 billion.

Competitor Zip also saw its co-founder Larry Diamond debut at with an estimated fortune of $552 million.

Expect to see more online sellers worm their way onto the Rich List in the coming years.

29 Oct, 2020
Heat mapping and digital queues: Malls' plan to fight virus as shops reopen
The Sydney Morning Herald

The owner of Australia’s largest shopping centre Chadstone, which was at the centre of a devastating COVID-19 outbreak, is introducing pandemic-busting technology such as heat mapping and digital shopping queues at 20 of its Melbourne malls as retailers reopen on Wednesday.

Vicinity Centres, the country’s second-largest retail landlord, says the technology will help counter potential outbreaks after a butcher's shop in the group's Chadstone mall infected dozens of people and seeded a COVID-19 cluster earlier this month that spread beyond the city to Kilmore and Shepparton.

"Safety remains our top priority and we’ve been working hard, alongside our retailers, to get our Melbourne centres ready for the reopening of retail with thorough COVID-safe plans in place utilising new technologies," Vicinity chief executive Grant Kelley said.

The $6.3 billion ASX listed landlord will use real-time heat-mapping technology to monitor what's happening in the malls so it can quickly respond to congested areas and send teams to keep customers moving.

As well, its new digital queueing system called SocialQ will help retailers safely manage shoppers' movements and reduce capacity and congestion in stores. The recently developed software allows customers to pre-book their shop and virtually queue through the use of QR codes on their mobile phones.

The tech was designed by Melburnian Dean Cherny, who owns in-store music supply company Marketing Melodies. Mr Cherny made the software through Australia's first lockdown in April and has had huge success rolling out the product in Victoria.

"At the moment it's going gangbusters," he said. "We're trying to get literally hundreds of retailers signed up by tomorrow."

The software manages online bookings and virtual queues for walk-up customers, with a goal of reducing crowds of shoppers lining up outside stores. If a store is too busy, shoppers can choose to virtually reserve a spot in line and come back later.

SocialQ has signed up prominent retailers and shopping centre owners, including Vicinity, GPT, JB Hi-Fi, Kmart, Target, Country Road, Cotton On and Just Group. More sign-ons, including from major mall owner Westfield, are expected in the coming weeks.

Mr Cherny is hoping the app will become a major boon for retailers managing crowds through the Christmas rush, with the company also supporting contact tracing if outbreaks occur.

Mr Kelley said Vicinity was also rolling out interactive, real-time data showing visitor numbers and forecasts for any given day and the week ahead. The feature, updated every 15 minutes across its malls, will help customers plan when and where they shop before they leave home.

“This feature makes it easy to avoid the usual busy periods, such as the middle of the day, and on weekends, and will save time for the most convenient shopping experience,” he said.

Melbourne’s large shopping centres are emerging from the long coronavirus lockdown battered and bruised.

The crisis wiped up to $1.8 billion from the value of Vicinity’s malls as it gutted foot traffic and forced multiple stores to close, putting pressure on rental income from tenants.

Vicinity, which manages and part-owns multiple top-tier malls such as The Glen in Melbourne’s east and Sydney’s The Strand Arcade, plans to station COVID safety officers at entrances to remind visitors to use hand sanitiser on arrival, wear a mask, encourage everyone to practise social distancing and direct traffic flow.

Mr Kelley said the new measures were in addition to a rigorous cleaning and sanitisation program.

Contactless parcel concierge (click and collect) was now available at nine centres across Melbourne, including Altona Gate, Bayside, Broadmeadows Central, Chadstone, DFO South Wharf, DFO Essendon, Uni Hill Factory Outlet, Northland and The Glen, he said.

29 Oct, 2020
Super Retail flags multimillion online investment as sales skyrocket
SOURCE:
The Age
The Age

Super Retail Group is pumping more money into beefing up its online capabilities as the retailing collective prepares to better tackle the rising tide of digital-only sales.

In a trading update ahead of its annual general meeting on Wednesday, Super Retail said online sales had grown 132 per cent across its four brands for the first quarter of the 2021 financial year. Super Retail operates Supercheap Auto, Rebel Sport, BCF and Macpac.

As a result, the company told investors it now expects its capital expenditure for the year to be $100 million, with much of it focused on increasing online capabilities.

"The dynamic growth we have seen in our digital sales, through both click & collect and home delivery, has reinforced our conviction in our omni-retail business strategy," chief executive Anthony Heraghty said.

"We will continue to reinvest in the business to enhance our digital capability and increase our market share."

Super Retail’s shares ended Wednesday's session 4.8 per cent higher at $11.69 following the update.

Online retail has boomed amid the COVID-19 pandemic. Digital sales at each of Super Retail's brands have more than doubled since the end of June.

Total sales, which include in-store, rose 25 per cent across the group for the same period despite 94 stores being closed through Melbourne’s second lockdown. Sales were positive across all brands bar Macpac, which fell 2 per cent due to being "heavily impacted" by the lockdown.

While the company did not provide any update on its earnings, Mr Heraghty said a 2 per cent jump in gross margins, thanks to a reduction in discounting, had boosted Super Retail's bottom line.

"Our considered approach to promotional activity in response to strong levels of consumer demand - to help manage inventory in the leadup to Christmas and optimise gross margin - and the substantial fixed component of our cost base means that revenue growth has flowed meaningfully through to the bottom line," he said.

Despite the bullish trading update, the company only narrowly avoided a 'first strike' against its remuneration report at Wednesday's AGM. A total of 17.18 per cent of investors voted against the report, just shy of the 25 per cent required.

Proxy firm ISS had advised its clients to vote against the report due to excessive short-term bonuses it awarded to Mr Heraghty, especially considering Super Retail's $6.5 million claimed in JobKeeper. It also took issue with the lack of specific hurdles required for the awarding of bonuses.

Investors also protested the awarding of 239,440 performance rights to Mr Heraghty, with 20.9 per cent voting against the proposal. ISS labelled the grant as "discretionary and less-than-rigorous" and questioned its grant price of just $7.19.

26 Oct, 2020
Temple & Webster quarterly profit more than previous full-year figure
Financial Review

Online retailer Temple & Webster made more profit in the September quarter than it did in the entire year ended June 30 amid a boom in furniture and homewares spending.

Temple & Webster earned $8.6 million before interest, tax, depreciation and amortisation in the three months ending September, compared with $8.5 million in fiscal 2020, chief executive Mark Coulter told shareholders at the annual meeting on Wednesday.

Sales in the year to date (July to October 19) have risen 138 per cent, year on year, after soaring 130 per cent in the June quarter, and October sales were more than double when compared with last year's figure.

The sales growth exceeded analysts' forecasts, but Temple & Webster shares fell 17 per cent to $11.62 as investors took profits. The shares have risen five-fold this year, from $2.68 to a record $14.03 on Tuesday, lifting the company's market value to $1.68 billion.

Some investors have also been rattled by heavy share sales by Mr Coulter, fellow co-founder and director Conrad Yui and chairman Stephen Heath.

Mr Heath sold 150,00 shares – 81.5 per cent of his holdings – for $1.4 million in an on-market trade in August, but shareholders were not told about the sale for more than five-and-a-half weeks. Mr Coulter sold 2.1 million shares in August, and the ArdenPoint Ecommerce Trust – owned by Mr Coulter and Mr Yui – sold 500,000 shares.

We believe that online shopping habits are being formed right now ... those habits will remain.

— Mark Coulter, Temple & Webster CEO

Temple & Webster's extraordinary sales and earnings growth highlights the shift to online shopping and the cocooning trend triggered by the coronavirus pandemic.

Consumers stuck at home are spending on new sofas and dining suites, carpets, kitchenware, lighting and manchester, parting with money they might otherwise have spent on overseas travel.

Harvey Norman, Nick Scali, JB Hi-Fi and Beacon Lighting have also reported strong sales growth in the June and September quarters, but growth at bricks and mortar stores has paled in comparison with that at pure-play online retailers such as Temple & Webster.

The company is taking advantage of the structural shift to e-commerce by adopting a high growth strategy, investing in areas such as technology and data, brand awareness and private label products to increase its market share.

According to the NAB online sales index, the online furniture and homewares category grew about 57 per cent during the pandemic (April to July); Temple & Webster's sales grew about 150 per cent.

"Even though the world is in uncertain times, we remain committed to our longer-term strategy of investing to ensure Temple & Webster is the brand for the next generation of furniture shoppers," Mr Coulter said.

"We want Temple & Webster to be the first place Australians turn to when shopping for their homes and workspaces. We believe that online shopping habits are being formed right now, and provided we keep putting the customer at the heart of everything we do, those habits will remain."

Flush with almost $80 million in cash after raising $40 million in new capital in July, the company is eyeing bolt-on acquisitions and partnerships after taking a stake in an offshore interior design start-up.

Mr Coulter also wants to invest more in technology, harnessing AI to enable the retailer to make personal recommendations based on customers' past shopping habits and to build an online catalogue of 3D products to help customers envisage products in their homes.

RBC Capital Markets analyst Tim Piper said the trading update implied Temple & Webster was tracking ahead of his full-year forecasts for 71 per cent sales growth and EBITDA of $22.3 million.

"As the market leader in online-based furniture and homewares in Australia, TPW has benefited from the accelerating shift to online and we expect the step-up in penetration to remain in a sizeable proportion," he said.

"We think TPW can also continue to grow market share (as well as expand into new adjacencies), which should compound the growth expected in the underlying market," he said.

RBC has an outperform rating and share price target of $12.

21 Oct, 2020
Payday for Wolverine as Andrew Forrest acquires RM Williams
The Sydney Morning Herald

Mining magnate Andrew Forrest has brought iconic boot brand RM Williams back to Australian shores after a $190 million acquisition that will see Hollywood superstar Hugh Jackman pocket $10 million.

The news, which had been heavily foreshadowed in recent weeks, was announced by Dr Forrest's investment fund Tattarang on Monday, with the Fortescue founder and multibillionaire saying he and his wife, Nicola, were "incredibly proud and humbled" to now own the brand.

"It always rankled a bit that this great Australian, Reginald Murray Williams, kicked off this fantastic organisation, employed so many people, and then it had to go to overseas hands," he said.

"I'm so glad it's now back, and I'd have to say the [Forrest] family has a big solid lump in its throat about returning RM Williams back to Australia."

RM Williams had been up for sale since May last year after its parent company, Louis Vuitton-partnered private equity firm L Catterton, began seeking buyers for the business at a $400 million to $500 million asking price.

Andrew ‘Twiggy’ Forrest and his wife Nicole have bought out iconic Australian brand R.M. Williams from an offshore company.

Various parties from around the world had expressed interest in the brand, but Dr Forrest's Tattarang emerged as the winning bidder after TPG Capital pulled out earlier this month.

It's understood Tattarang paid about $190 million for RM Williams, far below L Catterton's original asking price but still above the $110 million it paid for the business in 2014. RM Williams reported profits of $23 million in 2019, and the acquisition values the company at about 9x earnings.

Tattarang has bought 100 per cent of the business, buying out minority shareholders such as Jackman, who owned about 5 per cent of the business and will receive about $10 million from the sale. Jackman will remain an ambassador for the brand, as he has been since 2015.

RM Williams chief executive Raju Vuppalapati said he was proud of the progress L Catterton had made in expanding the brand since acquiring it six years ago and he was hoping to continue that growth under Dr Forrest's stewardship.

"The RM Williams team and I look forward to Andrew and Nicola's stewardship as we enter the next exciting phase of surprising and delighting our consumers with hand-crafted products made in Australia," he said.

Since L Catterton's purchase in 2014, much of the focus of RM Williams' growth has been on the international and youth market, with the business coining a target demographic of "boot boys and boot girls": younger, fashion-savvy Australians keen on longer-lasting products.

This has drawn the ire of some boot traditionalists, who believe the company has diverged from its quality-focused roots and has reduced the durability of its famed work boots.

However, while Tattarang's focus will remain on growing the brand in those markets, it has pledged to continue making the boots in Australia. It will also look to increase the company's online presence given the digital boom brought on by COVID-19.

The pick-up will also help Dr Forrest's investment vehicle build its portfolio outside of the metals, energy and agriculture sectors where the majority of its investments now lie, with the fund looking to continue to grow its "lifestyle" segment.

21 Oct, 2020
H&M is now in every Australian household
SOURCE:
Ragtrader
Ragtrader

H&M has today launched its Australian website, after announcing the venture in January this year.

From today, Australian customers will be able to shop the H&M range across women's, men's and kids' clothing, footwear and accessories.

Launching with a focus on sustainability and transparency, customers will be able to easily find the origin of a product, the countries it was produced in and the suppliers and factories where it was made on the website.

H&M Australia country manager Thomas Coellner said the business is thrilled to expand its omni-channel offering.

"We are very excited to finally launch H&M online in Australia and to be able to offer our fashion collections to customers nationwide anytime, anywhere.

"We now have 40 stores across the country and this significant milestone extends H&M’s omni-channel offering," he said.

For the first time globally, H&M's Australian website is launching online at the same time as its loyalty program, H&M Member.

To celebrate, customers will receive a discount off their first purchase when joining the program and will be able to access personalised discounts, invitations to exclusive events, free shipping with purchases over $60 and free returns for all online orders.

Members will also receive a digital membership card in the H&M mobile app which will allow them to pay using buy now pay later solution, Klarna.

20 Oct, 2020
David Jones appoints Country Road boss as new CEO
The Sydney Morning Herald

The parent company of David Jones has appointed Country Road Group chief executive Scott Fyfe to head up the struggling department store after a recruitment process that was delayed by COVID-19.

South African retail conglomerate Woolworths Holdings announced on Monday afternoon that Mr Fyfe would take over from interim chief executive Ian Moir, who will leave the business at the end of November.

The 46-year-old Mr Fyfe has been the head of Country Road Group, which includes brands such as Country Road, Politix, Mimco and Trenery, for four years and prior to that had a 20-year career at major British retailer Marks & Spencer.

The appointment was significantly delayed because of the COVID-19 pandemic, with Woolworths Holdings starting the recruitment process in January after former Levi's boss Roy Bagattini replaced Mr Moir as chief executive of the South African company.

His tenure was marred by an ill-fated decision to purchase David Jones for $2.1 billion in 2014, a price he later admitted was too much. Today, David Jones is worth less than half that amount after a number of write-downs and a run of profit declines.

In September, Mr Bagattini said the upmarket department store would accelerate plans to close some of its 40-odd stores after it plunged to a $33 million loss on the back of the COVID-19 pandemic.

Mr Fyfe said he still believed David Jones was one of Australia's "most iconic retail brands" and noted his focus would be on the changing nature of customers. Mr Fyfe was responsible for driving much of Country Road Group's online growth, something Woolworths is hoping he can replicate at the languishing David Jones.

"At CRG he has delivered market-leading online growth while optimising and repurposing store footprint," Mr Bagattini said.

"We look forward to Scott’s contribution and the application of his skills and expertise as we accelerate the turnaround of the David Jones business."

A recruitment process for a new CRG chief executive is underway, the company said. In the meantime, Country Road's managing director Elle Roseby and Witchery and Trenery's managing director Simon Schofield will jointly run the business.

David Jones chose to trade through the initial COVID-19 lockdowns in March and April, despite many of its retail rivals closing their doors, meaning it has not been as badly hit as other major department stores such as Myer.

20 Oct, 2020
'A bit bewildered': Relief and disappointment as retailers mull November reopening
SOURCE:
The Age
The Age

Victorian retailers have expressed a mixture of relief and disappointment over the state government's easing of restrictions, with many questioning why stores are not able to reopen sooner.

With low case numbers and a 14-day average, here's what Victorians can do from 11.59pm, Sunday 18 October.

On Sunday, Premier Daniel Andrews announced that retailers could open their doors with COVID-19 precautions in place from November 2, though this date might be brought forward if case numbers remained low.

Mike Schneider, the chief executive of $15 billion hardware retailer Bunnings, said while he welcomed the clarity provided by the government, he was disappointed larger format stores were unable to open.

"We’re disappointed that the different risk profiles in the retail sector have not been recognised, particularly standalone large format retail with outdoor adjacencies and stringent COVID-safe measures," he said.

"Reopening retail is vitally important to rebuilding the Victorian economy and to restoring a sense of normality to people’s lives."

Office supply company Officeworks, which is also owned by Bunning's parent company Wesfarmers, was similarly displeased. Managing director Sarah Hunter said the announcement was disappointing given the low case numbers in metropolitan Melbourne.

Ms Hunter added she was hopeful the sector might be able to reopen sooner than November 1, but noted the ongoing lockdown and further delay to resuming trading would have an outsized effect on smaller retailers that Officeworks relied on as both suppliers and customers.

"We are becoming increasingly concerned for our small and medium business customers who have borne much of the economic hardship of the lockdowns and as we move closer to Christmas, the extension of restrictions is likely to impact this group the most," she said.

Large retailers such as Bunnings and Officeworks have been lobbying the state government to be able to reopen for weeks, pointing to supermarkets as an example of the low virus risk in bigger retail spaces.

Small retailers were also lukewarm on the Premier's announcements. Caleb Brown, who heads up major retailing group Brand Collective, told The Age while he was broadly pleased about the plans, he questioned why the sector had to remain shut for a further two weeks.

"We remain a bit bewildered as to why we've been closed for so long, and why we continue to be closed until the first of November," he said.

"It beggars belief that you can purchase a pack of smokes but not a pair of school shoes under the current public health directions."

Mr Brown's company, which operates brands such as Superdry, Clarks and Volley, has had more than 35 stores shut in Melbourne through the lockdown. He's hopeful the government will be able to stay the course and prevent any further outbreaks, noting Christmas in the state would have to be "cancelled" if retailers were unable to open through November and December.

If the November 2 date goes ahead, retailers will be set to open for the Christmas season, which unofficially kicks off on Cup Day. Being able to prepare for the season, which is far and away the most important sales period for retailers, is an "enormous relief", according to Australian Retailers Association chief Paul Zahra.

"We're grateful to have a date, and I think Christmas will still be on, but just by the skin of its teeth," he said.

The industry body is now urgently calling on the government to provide clarity on what safety protocols retailers will be required to meet when it comes to reopening, saying requirements such as scanning QR codes on entry may be difficult to meet for larger retailers such as Myer.

But despite Mr Zahra's positivity, the former David Jones chief was not confident in the state government holding the line on the mooted reopening date, noting the year had been one of many "delays and disappointments".

"However, in saying that, we've got to remain positive and trusting," he said. "But if that trust is dashed for the second time, then once bitten, twice shy."

CBD outlook still poor

While a November reopening would give small retailers plenty of time to benefit from the Christmas rush, it will be of little help to retailers located in and around the Melbourne CBD.

Stores such as upmarket fashion retailer Harrolds are expecting to see a small percentage of the customers they usually would over the festive season. Managing director and Melbourne City Council candidate Mary Poulakis said CBD retailers would be "decimated" until workers were able to head back into the office.

"[Daniel Andrews] could say open tomorrow, but it would make no difference," she said. "Everyone will be jumping up and down and champing at the bit to make the tills ring, but until he says 'go back to work', the CBD is decimated."

Ms Poulakis said the November 2 reopening date was sooner than she had expected and was looking forward to "getting open and staying open" after two more weeks of "purgatory".

But once stores reopen, a flurry of consumers racing back into shops could put a strain on the sector, warns Bunnings boss Mr Schneider.

"We do still have genuine concerns for both our team members and the community that the re-opening of retail on a single day will see large numbers due to built-up demand," he said.

"Particularly in the lead up to Christmas, we believe this will significantly increase anxiety and risk for customers and retail employees."

Mr Brown said he expected there would be a rush of customers once stores reopened, especially those looking to return online orders received during lockdown, however, he welcomed from a sales perspective.

5 Oct, 2020
Solly Lew takes aim at Myer (again) after it swings to $172m loss
Financial Review

Solomon Lew – the billionaire rag trader and major Myer shareholder – has used the department store's poor full-year results to demand a management overhaul and the resignation of the board led by Gary Hounsell.

His Premier Investments holds a 10.77 per cent stake in Myer. In 2018, the Myer board accused him of trying to take over the department store on the cheap.

On Thursday Mr Lew took fresh aim at the retailer, which posted the second biggest loss in its history at $172 million, calling its full-year 2020 results "disastrous and shameful".

Total sales fell 15.8 per cent to $2.5 billion in the period, with comparable store sales dropping 3.3 per cent, reflecting widespread store closures because of COVID-19 restrictions, pushing Myer deep into the red. Group online sales, however, surged more than 61 per cent to $422.5 million.

The department store had $159 million of significant items in the year ended July 25, which included impairment to brand names of $95.9 million and lease right-of-use assets at $37.1 million. In fiscal 2019, Myer posted a $24.5 million net profit.

Mr Lew said that two years into Myer chief executive John King’s tenure, the turnaround was in "tatters".

"The numbers are dire," he said. "Notwithstanding the impact of COVID-19, the business is trading beyond poorly. Sales are down, EBITDA is down – on top of massive further write-downs to its brands and leases.

"Myer is crowing about its online offering, yet by its own admission online sales are actually eroding profits. After years of under-investment, its antiquated online offering is dilutive to EBITDA margins."

Mr King did reveal that online sales were minimally dilutive, but he expected online fulfilments would help change this over time. He said Myer was gaining a mix of new customers searching for key brands in segments such as homewares, and returning customers.

Sales in Victoria are up more than 200 per cent online, boosted by demand for coffee machines, kettles and toasters, compared with the rest of the country.

All stores were closed for most of April and May, and the department store stood down some 10,000 employees as the virus struck. Myer gained $93 million in JobKeeper subsidies but does not expect to qualify for the extension beyond the end of September.

Once again the company will not pay a final dividend, despite holding net cash of $7.9 million – an improvement of $46.6 million on the previous year – thanks to inventory falling 26 per cent, culled capital expenditure and rent deferrals. It last paid a dividend in 2017.

Although Myer's second-half trading was severely affected by COVID-19 and 11 of its Melbourne stores are now closed, the retailer's online sales are booming, and comprise about 10 per cent of total sales.

Mr King said the rapid growth in online sales accelerated during the second half, which doubled compared with the previous corresponding period, supported by strong growth in beauty, which jumped 218 per cent, and homewares, up 177 per cent.

"During the past two years, Myer has undertaken significant improvements to the website including enhancing infrastructure and peak capacity, and improved search and check out functionality," he said.

Mr Lew called Premier "a long-suffering investor and supplier" and accused Myer of transforming itself into the "world’s most expensive post office", pointing to a recent deal with Amazon through which parcel pick-ups have been introduced at 21 Myer Hub counters.

Vocal supporter

The $209 million retailer has also inked a delivery deal with Australia Post, hoping to boost online capacity and cut fulfilment costs and delivery times.

Mr Lew – who has been at the centre of the battle against landlords in the rents war – also took a swipe at fellow Myer shareholder Geoff Wilson, of Wilson Asset Management, who has a 7.8 per cent stake.

"Mr Wilson should now acknowledge that the continued failure of Myer is at least partially his own fault and his investors should hold him to account for the losses they have sustained and will continue to endure unless there is immediate change," Mr Lew said.

Mr Wilson has been a vocal supporter of Myer in the past and teamed up with Investors Mutual to thwart attempts to roll the Myer board in 2018. Investors Mutual is believed to have sold out of Myer.

Mr Wilson told the Financial Review that he could understand how disappointed Mr Lew was given he bought in at $1.10, while Mr Wilson bought in at 40¢. They both have lost money with Myer stock falling 18 per cent, or 4.5¢, to 21¢ on Thursday.

"[Solly] is one of Australia's great retailers and I have got a lot of respect for him," Mr Wilson said. "We are a fund manager. Every stock we buy does not go up. With Myer, COVID has been a very difficult period."

Mr Wilson – who said he planned to ring Mr Lew – said Myer was one of 120 comprising the portfolio, and he liked retail with other positions in Adairs, Temple and Webster, Red Bubble and Kogan.

"No one is happy when you lose money and I'm sure Solly has lost a lot more than us," he added.

Myer's banks recently agreed to extend their support despite July trading being severely affected by the crisis.

Mr King said he would in coming weeks finalise negotiations with landlords over rent reductions for the period impacted by COVID-19, and then would turn to stores coming up for lease renewal and talk about space reduction, too.

Over the next three years Myer had 11 stores up for lease renewal.

"We need to get a win-win for both of us and if not we will move on," he said. "We will still end up with a fair chunk of stores but they will be smaller, more focused and online will grow rapidly, having doubled over the past two years. We project this to continue. "

Mr King skipped outlook comments given the unpredictability, but said Myer's CBD stores would face challenges for some time. Despite the hurdles, he said the aspiration to become a $1 billion business in coming years was still within reach.

Citi analyst Bryan Raymond has a buy/high risk call on Myer, which he believes has a balance sheet to withstand the challenging near-term conditions, with 2021 earnings likely to remain under pressure given the category mix and lack of wage subsidies.

5 Oct, 2020
A2 Milk hit by Victoria's lockdown as lucrative daigou sales collapse
The Sydney Morning Herald

Dairy firm a2 Milk has flagged a hit to its revenue as the lockdown in Victoria shuts down its most lucrative sales channel to getting its product into China.

The dual-listed company on Monday updated its outlook for the first half of 2020-21, saying it expected revenue of between $NZ725 million and $NZ775 million ($675 million and $721 million), below the $NZ806.7 million reported in the first half of 2019-20.

Full-year revenue is expected to be between $NZ1.8 billion and $NZ1.9 billion, up on the $NZ1.73 billion reported in 2019-20.

A2 said its lucrative corporate daigou channels had been disrupted by the COVID-19 pandemic, particularly by the lockdown in Victoria.

 

Sales to corporate daigou, highly organised shoppers who run their own businesses buying products in Australia to sell in China, represent a significant proportion of infant formula sales in Australia and New Zealand.

A2’s ASX-listed shares plunged more than 10 per cent to a six-month low of $15.33 in reaction to the revised outlook. Shares closed down 11.42 per cent to $15.20.

Interim chief executive Geoffrey Babidge said the daigou channel had been very important to a2 establishing its brand in China.

"It's a channel that we have been able to manage well and it's one that we will support, and we'd like to be confident that will come back in a form that is still meaningful for our business in the medium term."

Mr Babidge said he was positive about the outlook "subject to the COVID situation in Victoria, or other states obviously being brought under control".

"We'd prefer a disruption such as this which, let's be clear, is substantially caused by external factors, did not take place," Mr Babidge said.

Andrew Mitchell from long-term investor Ophir Asset Management said a2 was still highly regarded and continued to win market share with Chinese consumers.

"We think ripping the Band-Aid off now with a swift cut to inventories is the most sensible decision, but painful in the short term. We fully expect trading margins for daigous will be quickly restored, improving their sales efforts as Melbourne emerges from lockdown," Mr Mitchell said.

A2 has been under scrutiny after its top executives sold millions of shares following the company’s financial results in August. Chairman David Hearn sold 250,000 shares for $NZ5,077,500, Mr Babidge sold 100,000 shares and Asia Pacific chief executive Peter Nathan sold 750,000 shares.

Mr Babidge defended the share sales, saying "the company and management are completely aware of the continuous disclosure obligations, which was the case at the time, obviously, when the share sales were made during August.

"As you know there are limited windows when trading can also take place and that occurred immediately after the release of the 2019-20 financial results in a very short window."

Former investor Wilson Asset Management reduced its position in the company following the financial results and then exited entirely after the share sales. "Significant insider share sales announced by key executives were a catalyst for us to reassess our thesis and we subsequently exited our remaining position" Wilson Asset Management analyst Shaun Weick said.

"Our main concern was that the bulk of the company's key executives were selling – and not insignificant amounts – combined with the fact that there were already lingering concerns around daigou channel demand patterns, we felt the outlook was increasingly challenging in the short term."

 

5 Oct, 2020
Former Cellarmasters chief joins WithWine
Inside FMCG

Technology group WithWine has appointed Cellarmaster’s former chief Ben Copeman-Hill as chief growth officer. 

Prior to joining WithWine, Copeman-Hill was GM at the wine club business Cellarmasters for five years. He specialises in direct-to-customer and e-commerce wine business growth and has almost 20 years of experience in global sales and marketing background. 

“Ben has a strong background leading the growth of Australia and New Zealand’s most prominent direct-to-customer businesses,” said Richard Owens, CEO and founder of WithWine.

“Now with Ben joining our team, we are combining our extensive technological expertise with in-depth knowledge of the wine industry, helping wineries connect with their customers and enabling their customers to enjoy a polished and personalised service through their device of choice,” he added.

Founded in 2014, WithWine is a direct-to-customer management system of choice for Australian wineries, including Henschke, Petersons and Leeuwin Estate.

5 Oct, 2020
Fund managers optimistic about manufacturing push
Financial Review

The Morrison government's proposed push on Australian manufacturing, which is expected to form part of next week's federal budget, has elicited an optimistic reception from investors who agree it's a good idea to enliven businesses struck by COVID-19.

Six areas of manufacturing have been identified that the government wants cemented as major areas of “sovereign capability” within 10 years. The sectors are: space, defence, food and beverages, clean energy and recycling, resources and critical minerals, and medical products.

The government may choose to provide targeted incentives to help promote the rise of the “circular economy”, says Simon Conn at Investors Mutual.  

Canberra was focused on creating jobs and part of that would be about providing inducements for the local manufacturing sector, said Simon Conn, senior portfolio manager at Investors Mutual.

The focus on local manufacturing also came after supply chains were interrupted during the COVID-19 crisis, prompting a hunt by many local companies for domestic alternatives, he said.

"So the timing is good and there is a real opportunity to try and help revive local manufacturing."

The government had made announcements about increasing waste recycling rates and might choose to provide targeted incentives to help promote the rise of the “circular economy”, the portfolio manager added.

"The days of dumping all our waste in the ground are gone," said Mr Conn, noting that packaging group Pact and waste manager Cleanaway were working together with Asahi to build a facility to recycle plastic waste.

Energy pricing is another area where the government wants to make changes and higher energy prices have been a painful issue for local manufacturers.

"Anything that reduces the cost of doing business in Australia is to be welcomed," said Mr Conn.

Critical infrastructure

"We have shot ourselves in the foot with our energy policy," said Jason Beddow at Argo Investment Management. "Australia is such a high cost place to do business today."

The federal government is working with the states to accelerate the construction of critical energy infrastructure.

Such infrastructure was a harder area for equity investors to key into, said Mr Beddow. "There's not that many ways to play it really. CIMIC is listed but it's pretty illiquid and there's some question marks around their corporate governance."

Downer and some of the smaller contractors and service providers are possibilities, but they are at the smaller end of the market.

Mr Beddow said he would welcome a return of high-tech, heavily automated manufacturing to Australia but acknowledged that any such move would likely be restricted to niche segments.

"It's hard to see anything on a grand scale that's going to make a lot of economic sense, unfortunately."

He is doubtful that supply chain changes will lead to a renewed focus on domestic alternatives: "It might mean for an Australian company that you source from Turkey, China and Vietnam rather than just China perhaps," he said.

That being so, housing and infrastructure are likely to be some of the key areas to benefit from the imminent budget. Building materials stocks including CSR, James Hardie and Adbri have already started to rally ahead of next week.

"They are an obvious beneficiary from the budget and there's a pretty direct correlation," said Mr Beddow. "If there's more housing starts or more incentives – particularly low interest rates – people will probably buy [or] build more housing.

"I don't think that there's a lot of direct effect outside the builders."

5 Oct, 2020
Former Myer execs acquire Colette by Colette Hayman out of administration
Inside Retail

The group of companies trading as Colette by Colette Hayman has been acquired out of administration by a team of investors led by Bernie Brookes and John Skellern, who previously worked together as the former CEO and former general manager of procurement at Myer, respectively.

The transaction was approved by creditors of the group at their second meeting last week, although details of the deal were not disclosed.

Brookes will be the major shareholder and chairman of Colette by Colette Hayman, while Skellern will serve as the CEO.

The new owners have retained a number of the brand’s key managers and staff, who will provide a “kick start” to the business, and concluded negotiations with landlords to ensure the streamlined store network will be able to continue trading. Relationships with suppliers have also been maintained, meaning much-needed fresh stock can be delivered immediately to stores.

The freshly recapitalised handbag and accessories brand will continue trading through 35 bricks-and-mortar stores in Victoria, New South Wales, South Australia, Queensland and Western Australia, and a burgeoning online store.

This is a significant reduction from the brand’s previous footprint of 138 stores across Australia and New Zealand, and revenue is expected to decline accordingly. The group previously had sales in excess of $140 million.

“The new Colette footprint comprises only one-third of the original stores, and a fledgling online business, which with dedicated resources and focus will deliver one-third of total revenue,” Brookes said in a statement shared with Inside Retail.

The retail veteran acknowledged that some might question his investment in a bricks-and-mortar fashion business given the challenges the sector is facing right now, but he defended the decision, citing Colette by Colette Hayman’s strong brand, private label margins and great customer base.

“My decision to take the majority shareholding will be viewed as contrary to the current difficulties facing bricks and mortar retail,” Brookes said.

“Owning a fashion retail chain is about true omnichannel retail; a strong online presence and physical stores. Our purchase will enable the business to land in a future post Covid-19 in advance of any cessation of lockdowns and restrictions in the future, and our core offer of handbags and jewellery will continue, with a fresh focus on the strong performing stores retained, and a significant investment in the digital space.”

Brookes said the new owners plan to stabilise and then build the brand while investing in the business.

The acquisition has preserved the jobs of nearly 300 employees, including close to 100 permanent roles, according to a statement issued by Deloitte Restructuring Services partners Vaughan Strawbridge, Sam Marsden and Jason Tracy, who were appointed voluntary administrators of the group on January 31.

The administrators reportedly received offers from several parties, despite the market uncertainty brought on by Covid-19.

“The sale of the business to a group of experienced retail investors represents a significant achievement in the current environment, and reflects the strength of the brand and the commitment of the group’s employees to its future,” Marsden said.

5 Oct, 2020
Aussie consumers prioritising ethical and sustainable products
Inside FMCG

New research reveals a shift among Australian shoppers towards “conscious consumerism”, with 87 of them saying that they are more likely to purchase products that are ethically and sustainably produced.

The survey of 1002 Australians commissioned by parcel delivery service CouriersPlease (CP) also shows that 85 per cent of consumers want retailers and brands to be more transparent as to where their products come from and how sustainable they are, as well as whether or not their producers are engaging in ethical practices.

NSW tops the states when it comes to conscious consumerism, with 87 per cent of respondents calling for transparency from retailers, followed by 85 per cent of Queenslanders, and 68 per cent from ACT.

CP also found that 41 per cent of Aussie consumers are willing to pay more for ethical and sustainable products – more so among younger shoppers (those below 30 years old) at 46 per cent compared with 34 per cent of over-50s. A higher proportion of women are also willing to spend more on sustainably produced products at 46 per cent, compared with 36 per cent of male consumers.

“Our research reveals that Australians are becoming more conscious shoppers and are starting to make more considered choices by seeking, and purchasing, products that are sustainably and ethically produced,” Paul Roper, Chief Commercial Officer at CP, said. “This is an important incentive for retailers to embark on sustainable initiatives within their own operations and supply chain.”

Roper added that CP themselves are working as hard as they can to achieve carbon neutrality.

“We recently gained LowCO2 Certification for all our operations from The Carbon Reduction Institute, and are working on several other ‘green’ initiatives which will help us on our path to becoming a carbon-neutral carrier by 2025,” Roper said. “One such initiative is our partnership with sustainable sock company Manrags, which has provided all Australian households with access to a digital at-home textile collection service.”

25 Sep, 2020
Myer trims board as shareholder pressure mounts
Inside Retail

Myer will not replace two outgoing board members after the business’ second largest shareholder, Wilson Asset Management, fired shots at its board size and fees.

The department store said it will not seek replacements for Lyndsey Cattermole and Julie Ann Morrison who will be stepping down as of its upcoming AGM – a decision chairman Garry Hounsell said Myer had been mulling over for a while.

However, the announcement came days after Geoff Wilson, chairman of Wilson Asset Management, said the struggling department store needed to reduce the amount of directors and keep a temporary 16.7 per cent fee reduction permanently.

Hounsell noted that directors fees had been reduced three times in the last two years, and that the current reduced fee structure will remain in place for at least two years.

Wilson also called for the director fee pool to be reduced, something Myer has agreed to review before the upcoming AGM to “ensure it aligns with the company’s current position”.

“Myer takes this opportunity to thank Wilson Asset Management for its ongoing support of the company during what is, and we agree with the comment in your letter, ‘a difficult and uncertain time’,” Hounsell wrote in a letter responding to Wilson.

According to AFR, retail industry sources suggest the announcements could have been made “in cahoots” in an effort to make both sides look good. “The sequence of events is too cute by half,” one source told AFR.

In comments made to The Age, however, it didn’t appear that Wilson felt Myer’s actions had been enough, saying it is within their constitution to have a minimum of four directors – meaning they could lose one more.

Myer’s largest shareholder Premier Investment recently took aim at Myer’s “disasterous and shameful” $172.4 million loss, and chairman Solomon Lew stated Wilson needed to accept that losses will continue to occur unless there is “immediate change”.

Myer’s 2020 AGM will take place on Thursday, 29 October.

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