Wesfarmers
Forced To Write-down Bunnings UK and Target
Wesfarmers
has announced a $1.3b write-down on its Bunnings UK operation and Target
Australia.
Bunnings
transition in the UK from the recently acquired Homebase group to the Bunnings
name has seen a significant sales decline in the 6 months to December 2017.
Bunnings says the rapid nature of the transition and the ditching of some non-core
categories has impacted on sales. They will be taking a broader approach in the
future.
Target has
shown some sales improvement in the latest half but continues to battle weak
discretionary spending in Australia and the need to move its product selection
to the middle and lower end of the market in direct competition with its stable-mate
K-Mart.
Solomon Lew
Moves On Myer Board
Following
the latest downgrading of Myer’s sales performance, Solomon Lew (holding some
10% of Myer shares) is seeking a board room spill and three director’s seats
for his Premier Investments
“Premier strongly
believes that a new Myer board with relevant expertise and experience in
retail, property and business is required as a matter of urgency. It is
not in the best interests of shareholders that the current Myer board be
allowed to preside over another year of declining sales, eroding profits and
further share price deterioration before urgently needed change is introduced
at board level.”
Amazon
Sneaks In 2Hr Supermarket Deliveries
Since taking
over supermarket chain, Wholefoods, last year, Amazon has been quietly
introducing its range of services and now customers in select US cities can get
two hour delivery (or 1 hr if they want to pay $8) on supermarket items through
their Prime membership. Just another example of Amazon revolutionising retail
convenience.
More
Reading:
https://www.bloomberg.com/graphics/2018-death-of-clothing/