News

Two years after Topshop's Australian business fell into administration, the future of its last remaining store is in doubt as British parent Arcadia Group attempts to stave off collapse.

Sir Philip Green's Arcadia Group is closing all 11 Topshop stores in the US after filing for chapter 15 bankruptcy protection and is seeking approval from creditors and landlords to restructure the business in the UK.

Creditors will meet in the UK on Wednesday to consider a company voluntary arrangement (CVA), under which Arcadia Group will close 50 of its 560 UK and Ireland stores and cut costs in return for rent reductions of up to 70 per cent on 200 stores.

If the CVA is not approved, Arcadia has said it is “highly likely, either immediately or after a short time period, to enter into insolvent administration or liquidation".

Two years after Topshop's Australian business fell into administration, the future of its last remaining store is in doubt as British parent Arcadia Group attempts to stave off collapse.

Sir Philip Green's Arcadia Group is closing all 11 Topshop stores in the US after filing for chapter 15 bankruptcy protection and is seeking approval from creditors and landlords to restructure the business in the UK.

Creditors will meet in the UK on Wednesday to consider a company voluntary arrangement (CVA), under which Arcadia Group will close 50 of its 560 UK and Ireland stores and cut costs in return for rent reductions of up to 70 per cent on 200 stores.

If the CVA is not approved, Arcadia has said it is “highly likely, either immediately or after a short time period, to enter into insolvent administration or liquidation".

Topshop's last Australian store may close if creditors of its UK parent, Arcadia Group, refuse to approve a restructuring proposal. James Alcock

Sir Philip has also been ordered to inject another £50 million into Arcadia's pension fund to convince The Pensions Regulator to support the CVA proposal.

Sources say the future of the Australian business will be determined by the outcome of the creditors' meeting in the UK.

Topshop's store in Westfield Bondi Junction in Sydney closed a week ago and its last store in Melbourne, in the Emporium shopping centre, closed three weeks ago. The only store trading is in Market Street, Sydney, in the former Gowings building.

"If the CVA is not approved, it may have to close the Australian operations - I can't imagine they're making a lot of money in Australia," one source said.

Arcadia pulled the plug on Topshop's Australian operation, known as Austradia, in May 2017, refusing to cough up additional financial support amid mounting losses.

Austradia was wound up and five of Topshop's nine stand-alone stores and 17 concessions in Myer were closed, with the loss of more than 400 jobs.

Australian assets

Arcadia bought back the Australian assets in June 2017, paying $5.3 million for its remaining inventory. Secured creditors received between 33¢ and 39¢ in the dollar and unsecured creditors received nothing.

Myer, which owned 20 per cent of Austradia through preference shares, wrote off the rest of its $6 million stake in October 2017.

Sources said Arcadia ran the remaining three or four stores from the UK for six months before appointing a former Harrods, Myer and David Jones manager, Carl Baker, as general manager in 2018.

Mr Baker could not be reached for comment on Tuesday.

Arcadia, which also owns retailers Dorothy Perkins, Burton, Evans and Miss Selfridge, has blamed its problems on "unprecedented" conditions in the UK retail sector and competition from online retailers such as asos.com and boohoo.com.

As part of the restructuring plan, Topshop will start selling on asos.com for the first time. The Topshop brand sells on Australia's largest online fashion site, The Iconic.

UK retail sales fell by 2.7 per cent in May, the biggest drop since at least 1995, with Brexit-related uncertainty taking a toll on consumer spending.

Metcash, which owns the IGA, Mitre 10, Home Timber & Hardware, Cellarbrations and The Bottle-O banners, has appointed former Super Retail Group chief executive Peter Birtles and veteran retailer Wai Tang as non-executive directors.

Mr Birtles retired from Super Retail Group in February after 13 years as CEO and five years as chief financial officer. SRG owns auto accessories chain Super Cheap Auto, Rebel Sport and outdoor leisure businesses BCF and MacPac.

Before joining SRG, Mr Birtles worked with health and beauty chain The Boots Co in the United Kingdom and Australia for 12 years.

The Metcash appointment is Mr Birtles' second non-executive role. He joined the board of building fixtures company GWA, which owns the Caroma, Dorf and Fowler brands.

Wai Tang has 30 years of experience in retail. She is a former chief executive of sleepwear brand Peter Alexander and a former operations director for Just Group.

Before joining Just Group, she was general manager of business development for socks and jocks company Pacific Brands. She was also the co-founder of the Happy Lab retail confectionery concept.

Ms Tang is currently a non-executive directorship of shopping centre company Vicinity, electronics retailer JB Hi-Fi and marketing services company Ovato.

The additional retail expertise on the board will be invaluable as Metcash invests about $10 million opening a chain of IGA Express convenience stores, which will initially be company-operated rather than operated by independent retailers.

“We are delighted to have Peter and Wai join the board," Metcash chairman Rob Murray said on Wednesday.

"They bring a high level of relevant skills and experience and we look forward to their contributions."

Mr Murray and Mr Birtles know each other well, as Mr Murray was on the board of Super Retail Group for two years until 2015.

The appointments of Mr Birtles and Ms Tang, which take effect next month, follow Metcash non-executive director Fiona Balfour's decision not to stand for re-election at the annual meeting this year after nine years on the board.

Anne Brennan also plans to step down due to potential conflicts relating to other directorships.

Analysts believe Metcash also needs to consider appointing a non-executive director with wholesaling experience, which has been lacking since former CEO Andrew Reitzer retired in 2013 and Edwin Jankelowitz left in 2015.

Metcash shares, which have fallen 12 per cent since the full-year results in June, gained 1 per cent to $2.77.

Primark founder and chairman Arthur Ryan has died after a short illness, the budget fashion chain has announced. 

Mr Ryan established the High Street retailer as Penneys in 1969 in his hometown of Dublin in Ireland.

Fifty years on, the chain has expanded to over 350 stores in 11 countries across Europe and the US. 

Primark chief executive Paul Marchant said 83-year-old Mr Ryan had been "a true real retail pioneer" and a "gifted retailer and a visionary leader".

"He innovated and was never complacent, despite many successes. He challenged us all to be the best we can be," he said. 

Mr Ryan ran the company for four decades as chief executive and 10 years ago, he gave up his day-to-day control of the firm to become chairman instead.

But Mr Marchant said Mr Ryan had remained "deeply connected" to the business and had continued to regularly visit stores and walk the shop floor.

The chain is still known as Penneys in Ireland, but was renamed when it expanded to the UK to avoid legal issues with US department store chain JC Penney, which had trademarked the name. 

Mr Ryan started the chain after being tasked by the wealthy Weston family to open a discount clothes retailer.

Primark has expanded rapidly in recent years, continuing to thrive in what has been a tough environment for many of its rivals. 

Its success comes despite criticism over staff pay, and the environmental and social impact of so-called "fast fashion".

Earlier this year, Primark's parent company Associated British Foods said it expected sales and profit to continue to increase in the first half of the year. 

In April, the chain opened its largest ever store in Birmingham, with the 161,000 sq ft five-floor space covering the entire site of a former shopping centre.

George Weston, chief executive of Associated British Foods, said Mr Ryan would be remembered as "one of the great giants of retailing".

"When my grandfather, Garfield Weston, and uncle, Galen Weston, recruited Arthur to run Penneys in 1969 with only one store in Dublin, they knew they were hiring an exceptional trader.

"But what three generations of Westons learned over the following decades was that Arthur was also a great leader and business builder, driven every day by a relentless desire to delight his customers.

"Arthur Ryan made fashion accessible to all and his legacy looms large."

Amazon is pulling out all the stops to launch its annual Prime Day next week, by engaging high-profile movie stars and singers such as Taylor Swift to release new and exclusive celebrity-endorsed products.

The large reach of the global campaign has put pressure on bricks-and-mortar retailers, particularly in Australia, where cash registers are not ringing as loudly as hoped thanks to a late winter and flat consumer sentiment.

Prime Day is a two-day online sales bonanza on July 15 and 16 and is only open to Amazon Prime members. It started in 2015 to celebrate Amazon's 20th anniversary and was aimed at retaining loyal customers.

It has become one of the biggest online sales day, but has been eclipsed in recent years by Black Friday and Cyber Monday, held in November, and the Alibaba Single's Day.

Last Prime Day, small and medium-sized businesses selling in Amazon’s stores surpassed $US1.5 billion ($2.1 billion) in sales globally and offered hundreds of thousands of deals.

Australian retailers are hoping the pending tax cuts will stimulate consumers to increase spending. Close to 10 per cent (and growing) of all sales are made online.

The influence of the big online events is also growing, with people seemingly doing their Christmas shopping on Black Friday rather than in December, which is having an impact on retailers' end of year calendar.

But while retailers can take advantage of Black Friday by holding a three-day event in store and online, Prime Day is online only, which makes it harder for bricks-and-mortar retailers to leverage off the event.

While it has been a slow burn for the online giant in Australia, due to the limits placed on access to some of the overseas Amazon sites, the platform still gets 15 million hits a month, or about 49 per cent of total online site visits in Australia, compared with 15.4 per cent for Myer, 10 per cent for David Jones and Iconic's 11.5 per cent. 

Bill Rooney, the founder of 6one5 Retail Consulting Group, says on one level Amazon is not where it hoped to be in Australia in terms of market penetration, but it is still the main site accessed.

"It's early days for Amazon in Australia and they put customers off by limiting access to sites, but the group has big plans and these one-off shopping events of Prime Day, Black Friday and Singles day, will only grow in stature and will put traditional retailers under pressure."

To cater for the expected growth, Amazon is believed to be looking at a site at Goodman Group's Oakdale industrial estate at Syney's Eastern Creek for its third fulfilment centre.

As revealed by The Sydney Morning Herald and The Age, Amazon earmarked the site for a distribution centre before opting for space at Moorebank in Sydney's south west, also owned by Goodman.

For Prime Day next week, Amazon is collaborating with actors, musicians and artists to introduce new and exclusive products and deals on a number of products.

In a first, Amazon will give Prime members in Australia first go at Prime Day deals.

"Australians will be able to shop Prime Day deals first and will have access to the longest Prime Day event in the world. Prime members will also enjoy free expedited international shipping with no minimum order threshold for all Prime eligible products through the Global Store during Prime Day," the company said.

South Africa-based Woolworths Holdings has confirmed it will reduce unproductive retail space across its David Jones and Country Road Group subsidiaries, amid declining comparable store sales in FY19.

David Jones’ total sales fell 0.8 per cent in FY19 compared to the previous corresponding period, and comparable sales fell 0.1 per cent, according to a trading update from Woolworths Holdings. 

Sales were “significantly impacted” by the ongoing refurbishment of the Elizabeth Street flagship, which is expected to be completed by the third quarter of fiscal 2020, the retailer said. 

David Jones’ online sales grew 46.8 per cent year on year, and now make up 7.7 per cent of total sales. 

Woolworths Holdings said retail conditions remain challenging in Australia, though Country Road Group enjoyed a slightly better year.

The fashion business, which includes the brands Country Road, Trenery, Politix, Witchery and Mimco, saw total sales grow 0.5 per cent in the year, and comparable sales fall 0.6 per cent.

Country Road Group’s online sales grew 12.9 per cent in Australia, and now represent 20.3 per cent of sales. 

Woolworths Holdings said as online sales grow, the reduction of unproductive retail space remains a priority, and highlighted its ongoing efforts to downsize David Jones and Country Road Group’s retail space. 

Woolworths Holdings itself saw total sales growth of 3.9 per cent, buoyed by strong growth in the company’s food segment, which saw total sales growth of 7.7 per cent, and comparative growth of 5.4 per cent. 

Woolworths expects to share its full year-end results closer to the end of August. 

The first half of the year was difficult for David Jones, which saw profit before tax fall 29.4 per cent during the first half, with Woolworths indicating it didn’t expect conditions to improve in the short-term.

During a conversation with CNBCAfrica, Woolworths Holdings chief executive and David Jones interim-chief executive Ian Moir said that he believed the group had overpaid for the department store, in hindsight. 

“I certainly wouldn’t go for the same deal… We overpaid for it at the top of the market, and we recognise that,” Moir said.

“It’s a great business and we can turn it around, we will get there, [but] with the benefit of hindsight I wouldn’t have paid so much.”

Swinburne University associate professor of marketing Sean Sands told Inside Retail the issues facing David Jones extends beyond just Australian shores – pointing to examples such as Debenhams and Sears.

“I think one of the issues department stores are having is: what is their identity, and who are the customers they are serving? They’re trying to be all things to all people, and that’s obviously not working,” Sands told Inside Retail.

Sands noted that David Jones’ strategy to bring in more exclusive international branded products into its stores was smart, in that it creates an identity around its offerings exclusivity, giving customers a reason to shop there.

“Whether or not people want to pay is another question,” Sands said.

Sydney Tools has unveiled an aggressive national expansion strategy that will see its store network more than double in the next five years.

In a statement released this week, the industrial power tool wholesaler and retailer said it plans to open 40 new stores in every state and territory in the country over the next five years, targeting both capital city and regional locations.

This is in addition to the 30 stores the family business already operates along the Eastern Seaboard in NSW, Victoria, the ACT and Queensland. 
The new stores will employ an additional 900 people, according to the retailer.

“We have a massive ‘runway’ ahead of us. Australia, like the US, has a large ‘tradie’ market so we’re confident with our expansion plan,” said Jason Bey, director of Sydney Tools.

“We have just finished implementing a range of new software systems which fits in with our program.”

Sydney Tools targets trade customers, and believes spending on infrastructure projects, particularly in NSW, Victoria and Queensland, will drive ongoing demand for its products.

The retailer stocks major brands, including Milwaukee, Makita, Dewalt, Hikoki, Festool, Paslode, Ramset, Husqvarna, Stanley, Fein, Unimig and Cigweld.

Sydney Tools also has a strong and growing online presence, though more than 94 per cent of revenue is generated through its bricks-and-mortar retail outlets.

“This is counter to most retailers. You can say we’re a bright spot in a struggling retail economy,” Bey said.

“In the trade tools business, customers like to come into the store and see the product first hand.”

Sydney Tools also has a fully-equipped workshop with 20 full-time technicians at its Sydney head office, and a further 15 technicians strategically located throughout the store network, who service products and facilitate warranty repairs.

“Our staff are trained to be the most experienced in the business and our customers can be confident of receiving the right advice,” Bey added.

“Their knowledge and commitment drive our success.”

The survey was taken as the government's $158 billion personal income tax package was passed by the parliament and soon after the Reserve Bank of Australia sliced official interest rates to a fresh all-time low of 1 per cent. 

Westpac senior economist Matthew Hassan said there were serious issues arising from the survey which pointed to troubles ahead.

"The fall in sentiment this month is troubling as it comes against what should have been a supportive backdrop for confidence," he said.

Expectations about the economy in a year's time fell to its lowest level in four years while expectations about the economy in five years' time dropped by 6.7 per cent.

Confidence among Coalition voters, which jumped last survey after the surprise May 18 election victory, fell back by 7.5 per cent.

Mr Hassan said while there had been hopes the combination of tax cuts and lower interest rates would boost consumer expectations, they had moved in the opposite direction.

"The muted sentiment response to both interest rate cuts and tax relief may stem from the fact that both developments were widely anticipated," he said.

"Notably, the sub-group detail showed no boost to sentiment amongst groups that stand to benefit most from policy easing: sentiment amongst mortgage holders declined 3.3 per cent in the month and sentiment amongst middle income earners was down 5.5 per cent."

The RBA has cut interest rates in a bid to drive down the unemployment rate which has inched up in recent months to 5.2 per cent.

The survey showed a 5.8 per cent lift in expectations of a higher jobless rate. It is now above its longer term average for the first time since mid-2017 with concerns about unemployment lifting sharply in NSW, Victoria and Western Australia.

Mr Hassan said the survey suggested confidence in the housing market was holding but consumers were increasingly worried about the broader economy.

Housing was a key element of the quarterly statement from the Council of Financial Regulators which is made up of representatives from the RBA, Treasury, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission.

The council, which met on July 5, discussed credit conditions and the "ongoing adjustment" in the housing market, noting some positive signs in Sydney and Melbourne but troubles in other capital cities.

"Council members discussed the signs of stabilisation in the Sydney and Melbourne housing markets, evident in both housing prices and auction clearance rates," it stated.

"They observed that the adjustment over the past two years has been sizeable and conditions in most other capital cities continue to be soft.

"Risks to lenders from housing price falls have to date been limited by the strength of the labour market, low interest rates and the improvement in lending standards in recent years. Housing loan arrears have continued to edge higher, but with significant variation between regions."

Crumpler has been named the official luggage supplier for the 2020 Australian Olympic team, and will design a bespoke collection for competitors to take to Tokyo next year.

It’s the second time the Melbourne-based bag brand has been selected to kit out the country’s athletes for the Olympic Games.

The retailer also provided bespoke luggage for the national team for the 2016 Rio de Janeiro Olympics in Brazil.

“As an iconic Australian-founded and -owned brand, Crumpler is excited to continue our support of Team Australia through the 2020 Games in Tokyo,” Crumpler CEO Adam Wilkinson said in a statement.

The Olympics are also an effective platform for Crumpler to showcase its growing range of luggage products to consumers globally.

Crumpler was founded as a messenger bag company in Melbourne in 1995, but has since expanded globally and grown its product range, most notably into lifestyle and casual bags, camera bags and luggage.

Today, the company has a retail and online presence in Australia, Europe, Asia and the US, including more than 31 storefronts and distribution across 37 key department store and online retailers worldwide.

And it’s continuing to raise its global profile. In May, Crumpler announced the appointment of two new distribution partners in Asia and the opening of its first standalone store in Beijing’s Hanguang department store.

Earlier this year, Wilkinson told IR that the company was also in talks with new distribution partners in the US.

“[W]e want to start facilitating some of the bricks-and-mortar presence more directly,” Wilkinson said at the time.

Australian Olympic Committee CEO Matt Carroll said he was delighted to have Crumpler on board for Tokyo 2020, which could see the biggest ever team of athletes from Australia.

“The Australian Team to Tokyo 2020 could be one of the largest ever and they will be travelling with luggage kit that
is stylish and dependable. We are grateful for Crumpler’s support,” Carroll said in a statement.

The latest retail sales data from the Australian Bureau of Statistics show a rise of 0.1 per cent in May, seasonally adjusted, which was slightly below the consensus forecast of 0.2 per cent.

This follows a fall of 0.1 per cent in April and a rise of 0.3 per cent in March.

Annual growth slowed to 2.4 per cent in May, the slowest pace since the start of 2018, according to Westpac, and well below the long-run average of 4 per cent over the year.

Westpac analyst Matthew Hassan described the May update as “bleak but not bleaker than expected”.

“Retail sales are treading water in nominal terms rather than contracting,” Hassan said.

“As such the wash up for the June quarter volumes that feed into national accounts estimates of consumer spending will depend heavily on what has been happening on the price side.”

Hassan noted that moves in food prices negatively impacted the food sales, which was the main source of weakness in the month.

The category, which accounts for 40 per cent of retail spending, fell 0.3 per cent in May, seasonally adjusted. Excluding food retailing, sales would have risen 0.4 per cent in the month.

“We suspect retail price inflation has slowed significantly from the food price driven gains over the last two quarters. The June quarter CPI update due at the end of the month will be an important pointer on this question and the extent to which growth in consumer demand is slowing,” Hassan said.

Other retail industries showed mixed results in May, with rises in cafes, restaurant and takeaway food services (0.7 per cent), household goods retailing (0.5 per cent) and other retailing (0.6 per cent). These rises were offset by falls in department stores (-0.4 per cent), clothing, footwear and personal accessory retailing (-0.2 per cent) and food retailing (-0.3 per cent).

By state and territory, gains were seen in Victoria (0.6 per cent), South Australia (0.5 per cent), the Australian Capital Territory (0.7 per cent) and the Northern Territory (0.5 per cent). Sales declined in Queensland (-0.3 per cent), New South Wales (-0.1 per cent), Western Australia (-0.2 per cent) and Tasmania (-0.4 per cent) in seasonally adjusted terms.

On Wednesday, NAB released its monthly Online Retail Sales Index, showing a 3.6 per cent gain in the month, following a weak result in April, when online sales contracted by 3.3 per cent.

Takeaway food, the smallest online retail category, saw the biggest gain in the month of 9 per cent.

Greenlit Brands has confirmed that its subsidiary, PSEA Dept Store, is terminating its franchise and brand agreements to operate the only Debenhams store in Australia.

The announcement comes roughly three months after Debenhams shareholders voted for a Company Voluntary Arrangement (CVA) that put the struggling British department store chain into the hands of its lenders and resulted in the business entering voluntary administration and CEO Sergio Bucher resigning.

In April, Debenhams announced plans to close 22 stores in the UK, a move it said would help it to save millions of pounds a year.

At the time, it was unclear what the administration process meant for the future of Debenhams in Australia, which entered the local market in 2016 under a franchise agreement between the UK business and Pepkor South East Asia (now Greenlit Brands).

Greenlit Brands, which also owns Freedom, Fantastic Furniture, Snooze, Best & Less, Harris Scarfe, Plush and OMF, said it was carefully monitoring the situation. Now, it seems the company has reached a decision.

“Due to change of control that has occurred at Debenhams UK, we believe that it is appropriate for us to start an orderly and managed process to cease this agreement,” Greenlit Brands CEO Michael Ford said in a statement provided to Inside Retail on Wednesday.

“Our immediate focus is to support the Debenhams team members in Australia through this process and where possible, look at redeployment opportunities in the Greenlit Brands group once the business ceases to operate.”

Inside Retail understands the store, which is located in the St Collins Lane precinct in Melbourne, will close in early 2020.

It’s a very different turn of events from the vision Greenlit Brands laid out when it first announced it was bringing the venerable department store chain to Australia in 2016.

The company, then operating as Pepkor South East Asia, said the Melbourne store would be the first of an eventual 10 Debenhams locations in Australia. The stores were meant to take advantage of the seasons to bring only the best-selling items from the retailer’s enormous range in the UK to the smaller format stores in Australia.

Even at the time, however, some questioned the move, given the general trend in department store sales worldwide.

“The last thing Australia needs is another department store and the cut-down model has not worked for most European department stores around the world,” Peter James Ryan told Inside Retail when the plan was first announced.

Indeed, none of the other nine planned stores ever eventuated. And the sole Debenhams in Australia – the 36000sqm, two-storey location in Melbourne – will soon close its doors.

“This process will be undertaken carefully and sensitively while maintaining business as usual and continuing to serve our loyal Debenhams customers in Australia,” Ford said.

Greenlit Brands has confirmed that its subsidiary, PSEA Dept Store, is terminating its franchise and brand agreements to operate the only Debenhams store in Australia.

The announcement comes roughly three months after Debenhams shareholders voted for a Company Voluntary Arrangement (CVA) that put the struggling British department store chain into the hands of its lenders and resulted in the business entering voluntary administration and CEO Sergio Bucher resigning.

In April, Debenhams announced plans to close 22 stores in the UK, a move it said would help it to save millions of pounds a year.

At the time, it was unclear what the administration process meant for the future of Debenhams in Australia, which entered the local market in 2016 under a franchise agreement between the UK business and Pepkor South East Asia (now Greenlit Brands).

Greenlit Brands, which also owns Freedom, Fantastic Furniture, Snooze, Best & Less, Harris Scarfe, Plush and OMF, said it was carefully monitoring the situation. Now, it seems the company has reached a decision.

“Due to change of control that has occurred at Debenhams UK, we believe that it is appropriate for us to start an orderly and managed process to cease this agreement,” Greenlit Brands CEO Michael Ford said in a statement provided to Inside Retail on Wednesday.

“Our immediate focus is to support the Debenhams team members in Australia through this process and where possible, look at redeployment opportunities in the Greenlit Brands group once the business ceases to operate.”

Inside Retail understands the store, which is located in the St Collins Lane precinct in Melbourne, will close in early 2020.

It’s a very different turn of events from the vision Greenlit Brands laid out when it first announced it was bringing the venerable department store chain to Australia in 2016.

The company, then operating as Pepkor South East Asia, said the Melbourne store would be the first of an eventual 10 Debenhams locations in Australia. The stores were meant to take advantage of the seasons to bring only the best-selling items from the retailer’s enormous range in the UK to the smaller format stores in Australia.

Even at the time, however, some questioned the move, given the general trend in department store sales worldwide.

“The last thing Australia needs is another department store and the cut-down model has not worked for most European department stores around the world,” Peter James Ryan told Inside Retail when the plan was first announced.

Indeed, none of the other nine planned stores ever eventuated. And the sole Debenhams in Australia – the 36000sqm, two-storey location in Melbourne – will soon close its doors.

“This process will be undertaken carefully and sensitively while maintaining business as usual and continuing to serve our loyal Debenhams customers in Australia,” Ford said.

Luxury fashion brand Zimmermann has opened a new boutique on the Amalfi Coast in Capri, Italy.

Designed by Australian architect Don McQualter of Studio McQualter, the 734sqf (68sqm) store aims to convey a “relaxed femininity, an air of freshness and light, and unyielding optimism”.

Zimmermann calls it a physical embodiment of the brand.

“We are very excited to be opening our store in Capri. It’s our first Zimmermann boutique in Italy and it’s a dream to have a store in such an iconic European seaside destination,” said Nicky Zimmermann, the brand’s creative director and co-founder.

“We thought it was such a perfect location to bring a part of Zimmermann to the Amalfi Coast.”

Located on Via Vittorio Emanuele, the boutique’s subdued pink facade is in keeping with the local palette. Its interior features custom metalwork, light fixtures, display tables, millwork and visual merchandising fixtures – all designed by Studio McQualter.

Artworks by Australian artist Tom Polo and the rich fabric palette of the fitting rooms add vibrancy to the space.

The store is the brand’s first in Italy and follows the opening of boutiques in London in 2017 and St. Tropez in 2018. Zimmermann said it plans to open a fourth European store in Paris in July.

Sisters Nicky and Simone Zimmermann launched the new boutique with a two-day celebration, starting with an intimate dinner by the sea on Thursday, June 27th, followed by a scenic lunch and all-day party at Villa Bismarck on Friday, June 28th.

A bevy of celebrities were in attendance, including actresses Katie Holmes and Laura Dern; models Karolina Kurkova, Gemma Ward and Arizona Muse; and Australian style authorities, Yasmin Sewell and Laura Brown, among others.

Official job vacancies fell 1.1 per cent in seasonally adjusted terms in the three months to May to 241,500 from 244,00 in February. Annual growth was down to 1.8 per cent from 9.9 per cent in the previous quarter.

Available jobs in the retail trade slipped for the second quarter in a row to 19,000, from 20,800, in raw terms.

"Since the election, business and consumer confidence have lifted, the sharemarket has soared and home prices have shown signs of stabilising, especially in Sydney and Melbourne," Mr James said.

"It may turn out that the economy is supercharged with all the stimulus applied. Still it is far more beneficial for the economy to be a little stronger given the global uncertainties in the current environment."

In seasonally adjusted terms, the number of job vacancies in the private sector was 219,400 in May, a decrease of 1.1 per cent from February, but up 1.2 per cent on the May quarter last year.

The number of job vacancies in the public sector was 22,100 in May, up 3.7 from February and 7.8 per cent on the May quarter of last year.

The health sector recorded the strongest growth in vacancies at 24.2 per cent year on year, most likely driven by hiring in the National Disability Insurance Scheme.

However construction saw growth fall to 6.1 per cent in May from 33.1 per cent in the previous quarter with dwelling investment slipping.

The official job vacancy data is a key indicator of the overall health of the labour market and has been sitting at record highs.

Australian Bureau of Statistics chief economist Bruce Hockman said that growth in vacancies was noticeably weaker in 2019 than it had been in 2018.

The Iconic's parent company Global Fashion Group has become a publicly listed company on the Frankfurt Stock Exchange. 

The group (GFG) began trading on the Frankfurt Stock Exchange on July 02 and raised €198 million from the IPO. Combined with GFG's net cash of €178 million (as of end of Q1 2019) the business is well-funded to invest in its growth strategy and customer proposition. 

As part of becoming a publicly listed company, GFG has welcomed a new supervisory board which was appointed on May 31. 

The board consists of six people who have experience across the fashion and beauty industries, bringing experience from companies such as Estee Lauder, Gucci, Macy's, American Eagle and Ashley Stewart. 

GFG co-CEOs Christoph Barchewitz and Patrick Schmidt said that going public will allow the business to leverage new opportunities in all the markets GFG operates in. 

"It is still very early days for fashion ecommerce in our markets. 

"We are building the number one fashion and lifestyle destination in Asia Pacific, Latin America and CIS. 

"Going public secures us funding to invest into our platform and infrastructure and in turn, benefit from the tremendous growth opportunities in our markets. 

"As part of becoming a public company, we are also excited to welcome a new Supervisory Board, whose combined wealth of experience in fashion, e-commerce and growth markets will support us on our journey as the leading fashion and lifestyle destination in growth markets," they said. 

Schmidt personally commented on his LinkedIn profile that this achievement is just the beginning. 

"This is a vote of confidence by both existing and new investors. 

"Our shareholders and our team of 11,000 people understand that this is just the beginning. 

"Serving more than 11 million customers last year represents a huge achievement, but it’s small when compared to the potential a population of 1 billion people who live in our markets.

"[This is] a huge step for us and a tremendous effort by our team," he said. 

Autobarn-owner Bapcor has successfully entered into a new $520 million debt package with existing lenders and new financier Metropolitan Life Insurance Company (MetLife) to establish an improved debt platform. 

One of the largest institutional investors in the world, MetLife is joined in the financing by ANZ, Westpac, MUFG Bank and HSBC. 

According to the business, the new package provides increased headroom, improved terms and pricing, as well as a new tranche of long-term debt. 

“The new debt facility has improved terms and pricing and provides significant flexibility for Bapcor going forward,” Bapcor chief financial officer Greg Fox said in a statement to investors. 

“We are pleased to have the ongoing support of our existing relationship banks and the addition of MetLife provides Bapcor with added diversification and an extended debt maturity profile.”

The package includes funding in three-, five- and seven-year tranches: with a three-year $70 million tranche available for working capital requirements, as well as a three-year $200 million tranche, $150 million five-year tranche, and a $100 million seven-year tranche, all available for general corporate purposes. 

Bapcor said its net debt had reached $350.9 million as of the end of 2018, having increased $61 million compared to June 2018. 

David Jones and Country Road Group are among the businesses taking part in creating a more sustainable packaging industry.

They are part of the the Collective Action Group (CAG) working towards the National Packaging Targets, which the Australian government set in 2018.

The targets stipulate that all packaging be reusable, recyclable or compostable by 2025; 70 per cent of plastic be recycled or composted; and all packaging contain an average recycled content of 30 per cent by 2025.

Additionally, the targets set out to remove “problematic and unnecessary” single-use plastic packaging.

The CAG, which held its first meeting yesterday, includes representatives from David Jones and Country Road Group, Coles, Coca-Cola Amatil, Nestlé Oceania, Pact Group, Visy, EY, Planet Ark, SUEZ ANZ, Institute for Sustainable Futures, Australian Council of Recycling, as well as Australian Government representatives and the Australian Packaging Covenant Organisation (APCO).

According to APCO, the agency leading the delivery of the 2025 targets, the CAG’s primary target for 2019 is the development of a white paper – setting the roadmap for a successful transition to a circular economy within the Australian packaging industry.

“The formation of the CAG is an exciting milestone in our work towards delivering the targets and it’s fantastic to bring together such a prestigious group of leaders for the task,” said APCO chief executive Brooke Donnelly.

“The 2025 National Packaging Targets are some of the most ambitious and decisive environmental targets to be supported in Australia, and their delivery requires collaboration form across industry.”

Over the next year, the APCO will work on delivering on an extensive program of projects to provide the CAG with analysis and resources, such as a mapping of the current waste recycling system and alternatives, research to better understand compostability, and the phasing out of single-use plastics.

Sydney retailers are generating close to 20 per cent more sales than their Melbourne counterparts each month, though no matter where they are based, business owners say the fight to grow their bricks-and-mortar stores is never-ending.

"Maybe there's a bit less frivolous shopping [in Melbourne] than there is Sydney. In Melbourne they're more considered in their approach to shopping," says co-founder of Melbourne clothing boutique Pickings and Parry, Chris Pickings.

A survey of more than 13,000 businesses globally found Australian operators have the second-highest annual sales among developed markets, behind the United States. Despite this, the average takings for an independent retailer is still just $504,000 compared with $538,000 for US retailers.

By comparison, department store Myer posted $3.1 billion in sales last year, while Uniqlo's Australian stores have grown to $243 million a year. 

Stores located in Melbourne net about $27,275 in sales a month on average, compared with $32,250 a month for companies in and around Sydney.

That $60,000 difference doesn't mean businesses in New South Wales automatically have an easier time, says children's clothing designer Kate Inglish.

"It's definitely getting harder," she says of running a bricks and mortar store.

Inglish sells internationally online while also running a store in Nowra, two hours' drive from Sydney.

Growing her business to just under the $1 million the mark during tough conditions also comes down to offering products customers cannot get from elsewhere, she says.

She suspects Sydneysiders may have the edge on retail spending because Melburnians allocate more of their budget to food than fashion and lifestyle.

Appealing to holidaymakers has also been a key priority.

"If people are on holidays, they're going to spend a lot more."

Niches key against high overheads

The Vend data suggests Australia's fashion and clothing industries sell about 27 per cent more stock than other developed markets.

Six years on from opening the Fitzroy shopfront, Pickings says the battle to offer a strong in-store experience while also spending hours on an online offer has become more important.

"For us and our product, we set out to create an offering that was not easy to get elsewhere," Pickings says.

Strip shops are increasingly vulnerable to extreme weather, with big shopping centres like Chadstone offering an easy one-stop location for families.

"Certainly in summer — a lot of people just go there because it’s comfortable," he says.

Running two businesses

As online retail continues to grow, many people forget independent retailers have essentially been asked to start another business, Pickings says.

"The biggest thing is the world wide web. As a small business, I don’t think anyone realises running a website takes time... it's essential in the modern world. It's also painful."

The longer-term impacts of this shift also play on Pickings' mind.

"What we’re conscious of is everyone wants to live in Fitzroy because it's got all these cafes and boutiques and cool things to do... but, they're not [always] putting money back into the economy in the local area."

No easier answer on rents

Three years on from opening her shopfront, Inglish says commercial rents are a key pressure that makes retailers think twice about launching in the first place.

"It’s a rip-off [rents]. It’s a huge thing. I don’t know if you can do anything about it but landlords don’t want to give you a buffer."

Australia's small business commissioners called for a change of rental regulation earlier this month to penalise landlords for empty shopfronts.

Inglish sees no easier answer to rising rental prices, though believes it could have an impact on new retailers.

"It’s a big gamble, especially to sign a three or five year lease."

Lego is upping the ante on sustainability with a new range of plant-shaped bricks built from sugarcane plastic.

The Danish toy giant announced earlier this year that the reformulated, eco-friendly building blocks were set to hit shelves and now they're available for purchase.

Lego plans to roll out the bricks across most products by 2030 as part of efforts to overhaul its manufacturing processes to prioritise plant-based materials and recycled sources.

Composed of 98% polyethylene the redesigned product meet guidelines laid down by the

World Wildlife Fund (WWF) owing to the absorption of CO2 by sugar cane during the growth phase. While they are still not biodegradable, they can be recycled.

Commenting on the new range Tim Brooks, vice-president of environmental responsibility said: “At the Lego Group we want to make a positive impact on the world around us and are working hard to make great play products for children using sustainable materials."

The green ‘Plants from Plants’ range will be distributed free with purchases of $40 and more from the Lego store in the UK, US, Canada, Germany and Austria for the next few days.

Lego is the latest brand to throw its weight behind a global shift against plastic use on environmental grounds, including Coca-Cola and Evian.

JB Hi-Fi Group rounded out its executive team on Tuesday, with Cameron Trainor reprising his role as managing director of the JB Hi-Fi business. 

Trainor has spent the past 12 months leading the group’s merchandising function. Under Trainor’s leadership, the merchandising arm of the business implemented a revised private label strategy, as well as trade reporting, tracking, and benchmarking protocols. 

“Group merchandise remains a key focus for the group and the group merchandise team will work closely with the merchandise directors in each of the JB Hi-Fi and The Good Guys business,” the company said in an announcement to investors. 

HR director for The Good Guys Lynda Blakely will take up the same role group-wide – now looking after the HR business across both JB Hi-Fi and The Good Guys. Blakely joined The Good Guys in 2016, and supported the business through a period of significant change as JB Hi-Fi acquired it. 

Additionally, JB Hi-Fi technology director Simon Page has been appointed to lead both companies as group technology director, having overseen “significant improvements” in the JB Hi-Fi business since having started in September 2015. 

“These appointments are a testament to the talent in both business,” JB Hi-Fi group chief executive Richard Murray said. 

“Following the move to our new shared support office, we remain committed to two separate and strong brands supported by integrated group functions.”