In two days we will be 25% through 2010, this is Easter week and daylight saving is also about to change to winter hours. There are only 9 months left of this year to achieve goals which we may have set ourselves at the start of 2010 !!
This is supported by the feeling that there are some interesting property activities emerging for those who want a bargain. In fact this last week has seen a number of previously considered dead and buried property ventures re-emerge, a clear signal that the balance of this year will see considerable planning taking place with a view to construction getting underway in 2011. Don’t be fooled by the doomsayers that say there is no credit available.
Forget the banks,there is still private money available for development as long as there are tenants to support the opportunities. This attitude is also consistent with retailers who have found it tough, beginning to realise that they will need new stores and they have to plan for them, hence property opportunities. The reality is that we as a nation are increasing in population, this leads on to demand, from housing to consumer products. All simple stuff !!
As we suggested last week, we expect to see some commentary in the media this week about Trading hours for retailers. The NZ Retailers Association made a couple of interesting observations last week in response to that commentary which are worth repeating. They suggest “that the retailer should at least have the choice to open when they want to, as do the consumers choose to shop when and where they wish”.
We don’t disagree, all we say is that the process should be transparent, with retailers observing regular shopping hours, when they are able, rather than opening and closing when they feel like it. At least in the major regional centres (Westfield and Kiwi), regular hours are enforced, so the customer knows they can be assured of all stores being open, when they want to shop.
Meantime, it seems that Westfield have run out of money in respect of Pakuranga Shopping Centre. They still have buntings up on the poles on roads outside the centre saying “Merry Christmas, Happy new Year”. Now we know that the year to date has gone by very quickly, but somebody should tell the Pakuranga marketing people that its Easter week. The flags are also looking rather shabby and not a good signal for the city of Manukau!!
Incidentally, gone unnoticed is the fact that credit card sales are down, which means we are all being a lot more careful with the amount of money we are spending. This leads on to the fact, that the lead item on TV One last night( Sunday) was ridiculous suggesting that we are all eating more KFC rather than vegetables.
Who is doing the research on these stories? Think about that for a moment. Because Restaurant brands are trading well up on previous years some Einstein thinks we are turning to fast foods as a diet replacement for vegetables. The reason for the increase for Restaurant Brands is because consumers are eating at home and as a result buying more takeaways.
If research was undertaken it would probably be revealed that this is a selected socio economic group. Conversely, vegetables are expensive. We suggest vegetables are being purchased in lesser quantities because of the price, and the message is endeavouring to avoid wastage not converting to a feed of KFC!!
Finally, that’s great news that Harrods are coming to New Zealand. The formal announcement is we understand due to be released on Thursday this week, to coincide with Easter Shopping, which should get some interesting news coverage over Easter. We hope you all have a very happy Easter.
Myer Shares - 2009-2010
Following on from last week, we will look at another relative newcomer to the stock market. Myer, Australia’s largest department store group, with 65 stores across the whole of Australia, was only listed on the ASX late last year. However, Myer’s 4 months on the stock exchange has been a downward slope.
Their half-year results, presented earlier this month reported a 2% increase in sales to $1,797 million (Australian dollars), and a 38% increase in net profit after tax to $115 million and that they plan on 12 new stores to open by 2013. However, these results did very little to prevent the share prices dropping, reaching an all low in early February.
Myer claims they found success in loyalty programmes, tailored marketing and refreshing visual merchandise, for instance operating “secret sales” for members only, and their report is worth a read for any retailer.
Retail News
Gap finally hits Aussie shores
US apparel retailer Gap has finally announced its intentions to enter the Australian market.
The company has signed a franchise agreement with Brand Republic, a subsidiary of Busby Holdings Australia, and will open its first store in Chadstone in Melbourne. The store is expected to be trading before the end of June.
(Source: Insideretailing.com.au)
New Zealand chip cards faulty
Serious security flaws have been uncovered for the new chip and pin credit cards that banks will start issuing in New Zealand from next month.
Visa said this week that all its 2.6 million credit cards with the old magnetic swipe strip must be replaced with chip cards by 2014. MasterCard will announce a similar program soon.
(Source: Insideretailing.com.au)
Pizza chain founder killed
Millionaire restaurateur Rocco ‘Rocky’ Pantaleo has been killed when his motorbike was hit by a car at a notorious Melbourne intersection. The founder of the La Porchetta pizza restaurant chain and Italian migrant Pantaleo, 53, opened his first pizza restaurant in Carlton in 1985 and built his business into an international franchise chain.
(Source: Insideretailing.com.au)
Retail body changes name, focus
The Retailers Association has undergone a rebranding which it says reflects its new, broadened focus on the entire retail sector, including suppliers.
From Saturday, the association will be known as the United Retail Federation.
(Source: Insideretailing.com.au)
Retail hoardings become art
Melbourne Central has collaborated with its retailers to adopt an innovative to the design of new retailer hoardings in-centre.
According to the centre, its latest hoardings produce hoardings raise the industry bar by using a colourful, original and striking artwork.
(Source: Insideretailing.com.au)
Topshop hits New Zealand
Budget conscious fashionistas will soon be able to shop at the British fashion chain Topshop, which is about to open a New Zealand store.
Topshop will open in The Department Store in Takapuna, Auckland, in April.
(Source: Insideretailing.com.au)
Hallenstein takes on discounting
New Zealand’s Hallenstein Glasson has adopted an optimistic approach to the future with the announcement of its half year profits.
The clothing retailer reported half year net profit up 55.9 per cent to $NZ8.5 million ($A6.55 million), due to improved sales, increased margin, and tight cost control.
(Source: Insideretailing.com.au)
Shell petrol stations now Kiwi-owned
Shell’s New Zealand network of petrol stations are now locally owned, with Infratil and the Super Fund saying that a large chunk of its profits will now stay in this country.
Infratil and the NZ Super Fund this morning announced they had finalised the purchase of Shell New Zealand in a $696.5 million joint venture deal after almost a year of negotiations.
(Source: nzherald.co.nz)
Auckland Airport named among top 10 in the world
Auckland International Airport Ltd has been voted ninth-best airport worldwide and the best airport in the Australia-Pacific region by travellers in the 2010 Skytrax World Airport awards.
The overall placing was up from 10th last year and it is the second consecutive year the airport has taken out the regional award.
Auckland Airport also won a staff service excellence award.
(Source: nzherald.co.nz)
‘Elle’ anoints trend to plus-size models
It has featured naked women on the cover and even actresses without make-up.
But now one of the world’s leading fashion magazines has created a real shock for France’s fashionistas by tackling the last taboo: plus-size models.
The latest edition of French Elle has a picture of model Tara Lynn wearing a white jumpsuit on the cover.
(Source: nzherald.co.nz)
