David Jones Shares 2008 2010
There has been quite a bit of publicity for David Jones recently. Mark McInnes’s employment as CEO was terminated mid June. But compared to the fall in share prices from late 2009, the scandal’s effect was minimal. In fact, since July, share prices started climbing again.
The way that the matter was handled and David Jones’ attempt to reduce costs throughout July retained investor confidence. Contracts were tendering out, showing that David Jones were prepared to cut off a 14-year advertising relationship for cost efficiencies. They have also terminated leases for any stores that are not showing high growth, while expanding high value ones.
However, the matter was not at an end. The Kristy Fraser-Kirk claim against Mark McInnes was filed to court last Monday, and since then, shares have started declining. We will watch out whether it continues to plummet but in the meantime, this is a small reminder that a work function is still a work function.
Retail News
JB Hi-Fi profits soar 26pc
SYDNEY – Electronics retailer JB Hi-Fi has reported a 26 per cent increase in full-year profit, and says it expects to grow sales by 17 per cent in the current year.
JB Hi-Fi reported net profit in 2009/10 of $A118.7 million ($NZ149m), up from $A94.438 million in 2008/09.
(Source: NZ Herald)
Publishers do battle with retail giant
A battle of the books is brewing between retailer Whitcoulls and companies that provide the product it sells.
One publisher has confirmed it temporarily stopped supplying books because of payment disputes, and others are hinting at trouble.
(Source: NZ Herald)
Stakes for sale in Bay of Plenty supermarket
Smaller investors are being offered an ownership stake in the recently opened Countdown Supermarket in the Fraser Cove Shopping Centre in Tauranga with the offer projecting an initial annual income return of 9 per cent per annum.
Augusta Funds Management is establishing a proportionate ownership scheme to buy the supermarket for $15,558,640 from the developer of the Fraser Cove centre, the New Zealand Retail Property Group (NZRPG).
(Source: NZ Herald)
Clean up with freehold titles in Tauranga’s Fraser Cove complex
Three freehold titles and a freehold unit title in Tauranga’s Fraser Cove Shopping Centre are being marketed for sale by Colliers International.
The properties, which are leased to Number 1 Shoe Warehouse, North Beach Stores, Godfreys and a Contours Gym on new five- to seven-year leases, are advertised in the latest issue of Colliers’ National Portfolio and are due to go to auction at 2pm on August 24 at the Sebel Hotel in Tauranga.
(Source: NZ Herald)
Jimmy Choo on the market
The owners of Jimmy Choo shoe brand and retail chain are weighing up a potential sale putting a price tag of up to STG500 million ($A869.11 million) on the firm, reports say.
The firm has been sounding out investment banks over options for the business and could appoint an adviser to carry out a strategic review by the end of the UK summer, the Sunday Telegraph says.
(Source: insideretailing.com.au)
Better margins boost apparel chain’s profit
Retailer Hallenstein Glasson Holdings Ltd is forecasting a profit rise of between 55 per cent and 57 per cent when it reports earnings in late September due to improved profit margins.
The operator of the Hallensteins, Glassons and Storm retail chains revealed today that sales for the 12 months ended August 1 rose 4.5 per cent to $207.14 million.
(Source: insideretailing.com.au)
Briscoe bounces back
New Zealand retailer Briscoe Group recorded a half year sales increase of 2.61 per cent, though overall profit is expected to be flat.
The homeware and sporting goods retailer Friday announced unaudited sales for the half year ending August 1 to be $190 million, compared to $185.3 million for the same time last year. Homeware numbers were up 1.73 per cent, while sporting goods sales were up 4.47 per cent. Briscoes owns the New Zealand franchise of the Rebel Sport chain.
(Source: insideretailing.com.au)
Private label ratio soars
The sweet taste that Australians developed for private labels during the global financial crisis shows no sign of turning sour as economic conditions improve, with business information research and analysis group IBISWorld forecasting strong growth in established and emerging markets.
According to IBISWorld, private labels account for nearly one quarter of Australia’s $70 billion grocery market, with their quickly gained 23 per cent share set to climb above 30 per cent in the next five years.
And IBISWorld predicts that Australia’s liquor market will be next one in which private labels make their presence felt, with retail powerhouses Coles and Woolworths behind their forecast rapid rise.
(Source: insideretailing.com.au)
