There have been some significant developments in the world
of retailing this week –
Kathmandu Receives Takeover Bid
Kathmandu, the outdoor equipment and
clothing chain has received a takeover offer from the NZ Briscoe Group. Briscoe
is a New Zealand homewares and sports goods retailer that already holds just
under 20% of Kathmandu. Kathmandu have retained Goldman Sachs to advise them on
the bid.
Coles To Pay Back $12m To Suppliers
The ACCC took action against Coles in
2014 over engaging in “unconscionable conduct” with certain suppliers back in
2011 through the Coles Active Retail Collaboration program (ARC). Independent
arbiter, Jeff Kennett, was appointed by the ACCC to administer the legal agreement made with Coles and he has instructed
them to pay back more than $12m to suppliers. Suppliers have also been given
the option of opting out of the ARC program.
Pac Brands Shows Improvement
The
owners of the iconic Bonds and Sheridan brands have upgraded their full year
earnings forecast following strong performance of their retail activities. The
announcement saw a 30% surge in the company’s share price.
QANTAS To Give Staff Bonuses
In an interesting
reaction to the airlines apparent turnaround, Qantas CEO Alan Joyce has
announced staff bonuses for over 7,500 staff. The airline is heading towards a
$1b underlying pretax profit for the financial year ended 30th June
partly as a result of wage freezes agreed to by 15 employee groups. The move is
described as recognition of the part employees have made in “turning the ship
around”.
Lush Wins Top Retail Award
Australian Retailer’s
Association has awarded Retailer of the Year to international beauty
manufacturer and retailer, Lush. Lush was chosen for its impressive employee
education programs, focus on employee well-being, and corporate social
responsibility.
Lush produces and
sells fresh handmade natural cosmetics and has an interesting marketing
philosophy – it does not use any paid advertising, but relies on word of mouth.
Wendy’s Supa Sundaes Goes Into Liquidation
Wendy’s Supa
Sundaes are the former master franchisor of the ice cream and hot dog chain. Their
liquidation may impact on some Wendy’s stores although most of Australasia’s
200 stores have been under a new franchisor since 2014.
