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19
Nov-18
Monday

Organised retail crime losses reach all-time high

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The NRF reported that organised retail crime (ORC) is continuing to grow, with nearly three-quarters of retailers surveyed reporting an increase in the past year. The report found that 92% of companies surveyed had been a victim of ORC in the past year and that 71% said ORC incidents were increasing. Losses averaged $777,877 per $1 billion in sales, up 7% from last year’s previous record of $726,351. Retailers attributed the increase to the easy online sale of stolen goods, gift card fraud, shortage of staff in stores and demand for certain brand name items or specific products. We've repeatedly commented that a cybercrime-enabled loss preventation function has become essential to retail operations in the Digital Age.

Profit disaster looms at Myer

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The AFR reported that Solomon Lew has warned that not even Father Christmas could stem an alarming sales slide at Myer. The department store revealed late on Friday that sales for the first quarter of 2018-19 had plunged by 4.8% as it belatedly responded after a day of high drama when its shares were forced into a trading halt by the ASX's compliance unit. Myer had also claimed online sales growth of 3.6% but later revealed that this figure included self-checkout purchases in stores. If the current sales trend continues through the quarter to 31 January, Myer will take a 55% hit to gross profit compared to 1H18.
16
Nov-18
Friday

Cotton On in the Big Apple

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Inside Retail reports that fast-fashion retailer Cotton On is set to open its first store in New York City, located in Empire Outlets – an in-development outlet centre located on Staten Island, NY. The outlet store will feature the brand’s women’s wear, menswear, and accessories, and is expected to open in early 2019. Retail Directions has been a key technology partner for Cotton On globally for over a decade.

Victoria’s Secret faces tough times

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Multiple media outlets reported that Victoria’s Secret’s stock has nosedived 72% in the last 3 years as investors continue to jump ship from its parent company, L Brands. Even worse, 43% of that drop happened in 2018 alone. The company's monopoly has all but disappeared amid the rise of new direct-to-consumer underwear brands with a focus on body positivity. Victoria’s Secret cut its apparel and swimwear in 2016, and this year it plans to close 20 stores.

Uber incurs hefty quarterly loss

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The AFR reported that Uber incurred a US$1 billion loss in the lastest quarter, despite 6% growth in bookings through the ride-hailing platform. The results are a 20% increase from the previous quarter but are down 27% from a year ago when the company posted its biggest publicly-reported quarterly loss on the heels of the departure of co-founder and CEO  Tavis Kalanick. Uber and the term "disruption" are synonymous, however, its disruptive impact comes not from technology but from bypassing regulations (using technology).

The "new" Wesfarmers eyes growth

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The AFR reported that Wesfarmers eyes growth after the Coles demerger was overwhelmingly approved by shareholders yesterday. However, the "new" Wesfarmers will begin trading without its defensive supermarket business at a time when growth stocks are being heavily sold off globally and the housing market downturn is expected to crimp sales growth at its biggest business, Bunnings.

Leaked figures suggest Myer sales collapse

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The AFR reported that leaked figures reveal that Myer's sales continue to sink.  Apparently, group's figures for the first quarter of FY19 show sales are down 5.5% year-on-year, and down 8.9% against the same period in 2017. Online sales are up 41% on the same period two years ago but down 5.2% versus last year. FLASH UPDATE: ASX site shows that at 10:30 Myer shares have been placed in trading hold, until 20th November / or Myer's announcement.  At the end of the day Myer updated the market, commenting that the leaked figures were incomplete and that the sales were actually 4.8% down and online sales were 3.6% up on the previous year.  Still not a pretty picture.

Levi Strauss & Co plans IPO

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CNBC reported that Levi Strauss & Co. plans to go public (again). The 145-year-old company, credited with creating the first pair of blue jeans, is planning an initial public offering to raise between $600 million and $800 million. The company is targeting the first quarter of 2019 for the offering, sources said. The jeans maker, which had gone public once before in 1971, is aiming to debut with a valuation upwards of $5 billion.
15
Nov-18
Thursday

Google to bring self-driving rides to the public this December

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The Hustle reported that after 9 years of secretive R&D and more than 10 million miles (16 million km) of testing, Google’s self-driving car subsidiary Waymo will finally sell self-driving rides to the public in December. Starting in Phoenix, Arizona. Analysts estimate that, as the first player in the market, Google’s unnamed autonomous ride-hailing company will be worth more than US$80 billion before it even launches (Uber is valued between US$70 billion and US$120 billion). Since Waymo is literally millions of miles ahead of the self-driving competition, its new commercial self-driving company won’t compete against auto-automakers, but against rideshare giants. It's pretty much just like Uber, but without the disgruntled drivers.

Wesfarmers faces investor grilling over Coles

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The AFR reported that the Wesfarmers board faces a grilling over its decision to retain a $2.3 billion stake in Coles, load up the food and liquor retailer with $2 billion of debt and retain almost $1 billion of franking credits, which means Coles will be unable to pay a franked dividend in its early years as a stand-alone company. Wesfarmers shareholders will meet in Perth on Thursday to approve the $20 billion demerger of Coles, which is expected to start trading as a separately listed company on November 21.

National Tiles seeks a buyer

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The AFR reported that National Tiles has made a growth pitch to potential buyers, telling tyre-kickers it has racked up 17 years of uninterrupted sales growth. The privately-owned retailer has informed the market that its sales have grown 12% a year since 2016 while maintaining "its strong margins and disciplined cost management." Bankers reckon likely buyers include offshore strategics and domestic parties that also focus on selling goods into homes, including GWA and Reece. Private equity is also expected to be in the mix.
14
Nov-18
Wednesday

Coles Local an Aldi imitation?

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The AFR reported that Coles is aiming to take market share from independent retailers including IGA and Harris Farm Markets by opening a network of convenience stores to cater to local appetites. The Coles Local is half the size of a traditional full-service supermarket and carries about 8,000 products - a third of the usual range. It appears to us like Coles is simply trying to look like Aldi. And, while imitation may be a form of flattery, it's definitely not a sound long-term strategy for the grocer.