Tag: Australia

  • Toys “R” Us Australia accumulates USD344m in losses

    Toys “R” Us Australia accumulates USD344m in losses

    Toys “R” Us, the self-described “world’s first toy supermarket”, has racked up accumulated losses of almost AUD450 million (USD343.9m) since arriving in Australia.

    The US-based toy and baby products retailer has operated in Australia for more than two decades. It has more than 30 stores, 11 Babies “R” Us Superstores, online operations and about 1600 employees.

    Researchers IBISWorld said it had lost market power over the past five years, but was the second-biggest player in the AUD850 million toy and game retailing industry.

  • PayPal taps Libby Roy to lead Australian team

    PayPal taps Libby Roy to lead Australian team

    PayPal Australia has passed the managing director baton to an outsider by announcing former AMP corporate super director Libby Roy has taken the reins from Jeff Clementz who is returning to the US.

    The changing of the guard comes at an important time for financial services and payments companies, which are awaiting the federal government’s response to the sweeping financial system inquiry.

    Ms Roy, joined as a vice-president and head of Australia, and will also serve as an executive committee member in the PayPal Asia-Pacific leadership team, the company said in a statement. Mr Clementz will take up the new role of vice-president of compliance and operational excellence in global operations.

  • Gelatissimo seeks new Malaysian partner

    Gelatissimo seeks new Malaysian partner

    Australian gelato chain Gelatissimo is searching for a new franchise partner in Malaysia – but says its expansion strategy in Asia and beyond remains on track.

    Gelatissimo’s sole store in Malaysia, at The Gardens mall in Mid Valley, closed late last year after the partnership proved less than successful, but Carlos Antonius, the company’s international franchise development manager, says it remains committed to Malaysia.

    “We are currently in the market for a new franchise partner to capitalise on the brand equity already developed in Malaysia,” he told InsideRetail.Asia by email.

    Meanwhile, Gelatissimo operates successfully in international markets of Singapore, the Kingdom of Saudi Arabia, Kuwait and the Philippines.

    “We are working collaboratively with our existing franchise partners to further develop our presence in these markets and are continually reviewing all aspects of our operations to drive the business forward,” said Antonius.

    “At the same time we are investigating additional market entry options into South East Asia and the Americas.”

    Gelatissimo launched in Australia with a concept store in 2002 and after quickly finding favour with customers, commenced franchising two years later.

  • Where are our beer caves? Convenience stores in Australia want US-style alcohol sales

    Where are our beer caves? Convenience stores in Australia want US-style alcohol sales

    US retailing giant Costco is appealing a court decision blocking it from selling alcohol at its new Adelaide store, as the government is urged to review restrictions on supermarkets.

    Australia’s complicated alcohol retail market is under the spotlight after the Harper review into competition policy said restrictions preventing supermarkets from selling liquor “impede competition”.

    Australia’s No.1 supermarket, Woolworths, and industry association the Australian Hotels Association last year successfully objected to Costco’s bid for a “Special Circumstances Licence” in SA.

    Convenience stores say that allowing supermarkets to stock alcohol in their aisles would be an unfair advantage.Convenience stores say that allowing supermarkets to stock alcohol in their aisles would be an unfair advantage.Photo: Gabriele Charotte

    The state’s licensing court concluded that Costco’s model for liquor retailing was not compatible with South Australian requirements and granting the big-box retailer a licence would risk setting “an undesirable precedent”.

    Only one liquor licence has been issued in SA in the past nine years, said Jos de Bruin, chief executive of the Master Grocers Australia. MGA represents the $9 billion independent grocery sector.

    Costco Australia managing director Patrick Noone told Fairfax Media he was hoping for a decision on the appeal in the next few months.

    Victoria and the ACT have the country’s most liberal alcohol retail laws.

    Costco sells alcohol in Victoria, the ACT and NSW. NSW requires Costco customers to pay for alcohol in a separate, defined area.

    In Queensland, retailers must have a pub licence or a pub to sell alcohol. Costco has yet to set up in WA.

    There are very few Coles, Woolworths and independent supermarkets, such as IGA, that are able to sell alcohol from the supermarket aisles, said Mr de Bruin. Instead, they sell alcohol in nearby but separate areas.

    Discount supermarket retailer Aldi is able to display alcohol in its Victorian and NSW supermarkets near the counter, with expensive items locked in cabinets. It also sells alcohol online.

    The government’s long-awaited Competition Policy Review this week recommended making it more difficult for large companies to competitively crush smaller ones by strengthening the Competition and Consumer Act, and deregulating retail shopping hours and planning and zoning rules.

    In response to the recommendations, Mr Noone said: “We welcome the encouragement to have more competition in all areas of retailing.”

    But the idea supermarkets might be able to sell alcohol in-store has “disappointed” Australian convenience stores, which complain their inability to sell alcohol deprives them of up to half a billion in sales.

    Jeff Rogut, the chief executive of the Australasian Association of Convenience Stores, said enabling convenience stores to sell alcohol would deliver them about $400 million to $500 million in sales, from a $17 billion overall market.

    Mr Rogut said rules in North America, the UK and Asia showed Australia’s liquor licensing laws were “really back in the [19]60s and ’70s.”

    In the US, some convenience stores have “beer caves”, areas with cold beer, and customers can fill large containers called “growlers” with beers on tap, he said.

    “There’s 160,000 convenience stores in the US,” Mr Rogut said. “There may be one or two isolated areas where they don’t allow alcohol – like Philadelphia or Pittsburgh, or somewhere up there – but the vast majority sell alcohol.

    “We were in Japan and Korea last year, virtually every convenience store that we saw sold beer, wine and spirits, from individual, almost little cups that you can drink on the run, to full bottles.”

    Mr Rogut also said giving the green light to supermarkets only would “further entrench the dominant players”, that is Woolworths and Coles, while depriving its members, such as 7-Eleven, BP and Caltex.

    “It’s a difficult category [alcohol], generally, because a lot of people tend to look at the social impacts, without really considering the commercial impacts,” he said.

    “What we’re saying is, it’s a legal category, it’s dominated by only a handful of players.

    “We really should have the ability, for those stores that choose to sell beer and wine, and that’s really what we’re looking for, to be able to sell responsibly, as we sell tobacco, lottery, other restricted-type products.”

    Grocery wholesaler Metcash did not respond on the prospect of selling alcohol on supermarket shelves.

    The Harper review made six recommendations in relation to retail markets.

    These were to develop “more effective misuse of market power provision, [to] consider competition in planning and zoning rules, [to] remove remaining restrictions on retail trading hours, [to] remove pharmacy ownership and location rules, [to] promote the development of industry codes with practical and effective dispute resolution processes, [and to] examine liquor licensing rules as part of a review of regulatory restrictions.”

  • Cotton On plans next stage of global growth

    Cotton On plans next stage of global growth

    Cotton On Group has revealed plans to add 227 jobs in Australia and overseas this year as the Geelong-based value fashion retailer embarks on another expansion phase aimed at maintaining its five-year record of 20 percent-plus sales growth.

    Cotton On Group’s sales are forecast to rise 22.5 percent in 2015 to AUD1.51 billion (USD1.17b) and the privately owned company is budgeting for 20 percent-plus growth in 2016 by opening more than 100 stores and expanding e-commerce with new online sites, improved digital content and click and collect options.

    Over the next three years, the group plans to open 570 stores around the globe, taking the total to almost 1900, while lifting online sales to AUD250 million.

  • Kathmandu slows down Aussie expansion

    Kathmandu slows down Aussie expansion

    Outdoor clothing retailer Kathmandu is putting the brakes on its store expansion in Australia after racking up a first half loss.

    Disappointing sales at Christmas and in January as well as heavy discounting on excess winter stock were blamed by the retailer for pushing it into the red with a NZD1.8 million (USD1.4m) loss.

    The gloom looks likely to continue, with sales during the seven weeks to mid-March down 2 percent on a year ago.

  • Kemenys sales and profits down in tough liquor market

    Kemenys sales and profits down in tough liquor market

    One of Australia’s largest independent liquor retailers, Kemenys, has suffered a drop in sales and profits in its latest financial year and faces an even tougher time this year as it tries to counter the full impact of a Dan Murphy’s superstore owned by Woolworths that opened nearby in a prime eastern Sydney site in mid-2014.

    Kemenys, which runs a large retail store in the beachside Sydney suburb of Bondi and has more than 100,000 mail-order and online customers it services from a separate warehouse, is owned by the Kemeny family. The business has been operating since 1960.

    It has remained independent in a fiercely competitive liquor retailing market where Woolworths and Coles have been increasingly dominant, even though there was a formal process in 2005 when investment bank Grant Samuel tested the appetite of potential buyers of the business.

  • Muji moves on Sydney

    Muji moves on Sydney

    Japanese lifestyle retailer, Muji, has confirmed it will open its first store in Sydney.

    This will be the third Australian store for Muji, adding to its two locations at Chadstone shopping centre and Emporium in Melbourne.

    Retail News understands the store will be located at The Galeries shopping centre in Sydney’s CBD, replacing the former Freedom site, and will open by May.

    Dubbed “Japan’s answer to Ikea”, Muji stocks a range of categories from men’s, women’s, and children’s apparel and accessories; furniture and homewares; skincare products; stationery; and travel goods.

    The retailer is owned by Tokyo-based company, Ryohin Keikaku, and has more than 600 stores, including more than 200 international stores in Britain, France, the US, China, Taiwan, Thailand, Germany, Sweden, and Italy.

    Muji first launched in 1980 with a range of nine household products and 31 foods. Today, it sells more than 5000 products in Japan.

  • Cotton On tells staff to keep it real or face the sack

    Cotton On tells staff to keep it real or face the sack

    It may be a new low in human resources gibberish.

    But the fun crowd at retailer Cotton On have told staff they need to “keep it real” or face the sack.

    A leaked copy of Cotton On’s code of conduct tells its staff it is “unacceptable” when working with colleagues or customers, to be anything but “fun” and “keeping it real”. No ifs or buts. Failure to do so can result in being fired on the spot.

    Less well defined in the document is what “keeping it real” means. The Online Slang Dictionary tells us that to “keep it real” is to “stay true to one’s self; to resist the temptation to be fake”. One claim is that the origins of the phrase emerged out of hip-hop culture in New York in the late 1970s and early 1980s.

  • Spotlight Malaysia opens second store

    Spotlight Malaysia opens second store

    Australian fabric, craft, party and home and living superstore Spotlight has opened its second store in Malaysia.

    The new stores is in the IPC Shopping Centre, Mutiara Damansara in Petaling Jaya, near Kuala Lumpur. It follows one in Ampang Point, Kuala Lumpur, which opened last July.

    Spotlight Malaysia 7-315.

    The store offers 2000sqm of retail space, and stocks 70,000 products in six categories: home furnishings and decor, bedding, dress and fashion fabrics, crafts, hobby and party essentials.

    Spotlight Malaysia 315

    Spotlight GM Juno Gelfand said the expansion to the IPC mall was part of Spotlight’s philosophy “to be able to offer more neighbourhoods the largest possible choice of fashionable and affordable products”.

    Spotlight Malaysia 6-315.

    “We know too well the inconvenience of searching far and wide, running from store to store just to find that one (or more) beautiful decor piece.

    Spotlight Malaysia 4- 315.

    “Here, with all-time popular home essentials and seasonal selections of products for every room of the house available under one roof, we are certain that sprucing up the home will be less stressful and hassle-free,” he said.

    Spotlight Malaysia 3- 315.

    Spotlight Malaysia 2- 315.

    “Think of it as a pit-stop whenever you are preparing for a party, breathing new life into your home interiors, or pursuing your hobbies.”

    Spotlight Malaysia 5- 315.Spotlight Malaysia 1 - 315.

    Spotlight is targeting home decorators, dressmakers, hobbyists and DIY enthusiasts as well as party organisers.

  • Pumpkin Patch looking for buyers

    Pumpkin Patch looking for buyers

    Children’s clothing retailer Pumpkin Patch, whose shares have lost two-thirds of their value the past year, is seeking formal proposals after receiving approaches to buy or refinance the company.

    The Auckland-based retailer, which on Friday posted an improvement in first-half earnings, says third parties have indicated an interest in Pumpkin Patch since the company announced a capital review at its annual meeting in November.

    It has a market capitalisation of NZD35.5 million (USD26.4 million).

  • Lend Lease to partner in $2bn Malaysia project

    Lend Lease to partner in $2bn Malaysia project

    Australia’s Lend Lease has signed up to develop a new retail and residential development in Malaysia.

    Lend Lease will have a 60 per cent stake in The Lifestyle Quarter with local developer 1MDB Real Estate the balance.

    1MDB is the master developer for an upcoming international financial district called Tun Razak Exchange. The Lifestyle Quarter will be a retail‐led, mixed‐use development of over 17 acres comprising a new retail mall, several residential towers and a hotel connected to a multilayer central park and the largest MRT station in Kuala Lumpur. When completed it will have a Gross Development Value estimated at MYR 8 billion (US$2.156 billion).

    The two companies signed a Master Framework Agreement last October, and late last week signed a formal JV agreement in the presence of Malaysia’s Prime Minister Dato’ Sri Mohd Najib Tun Abdul Razak.

    Lend Lease Asia CEO Rod Leaver, said the two companies will transform TRX into “an iconic destination”.

    “With our global track record in large scale urban regeneration in partnership with national and city governments, coupled with  our over 35 year history in Malaysia, we are confident of making the TRX Lifestyle Quarter an outstanding success with our partner.”

    TRX aims to become a global hub for international finance and business.

    Lend Lease has a growing portfolio of property interests in Malaysia, the most recent being Setia City Mall.

    The company was selected from a pool of international and local bidders to partner with 1MDB RE in the Lifestyle Quarter development following an invitation to participate as a strategic development partner.

    The Lifestyle Quarter will form the social heart of the TRX precinct. It aims to offer a series of modern lifestyle experiences and set new benchmarks not only in terms of design, but for the types of retailers, dining establishments, outdoor spaces, leisure activities and entertainment options it provides.

    TRX will be one of the largest developments in Lend Lease’s current portfolio of global projects.

  • PricePanda, Getprice to merge

    PricePanda, Getprice to merge

    Price comparison site, PricePanda, and Sydney-based, Getprice, will merge to create an online comparison shopping business network across the Asia Pacific.

    The newly created group will operate as Next Commerce and will operate in nine countries across Asia Pacific and reach more than four million unique visitors each month.

    Under the umbrella of Next Commerce, PricePanda and Getprice will continue to operate as standalone brands in their respective markets.

    Jared Oken, Getprice co-founder, will be the new CEO of Next Commerce. Chris Hitchen, also a co-founder of Getprice, will chair the board of directors that will include Oliver Samwer from Rocket Internet.

    As part of this transaction, PricePanda’s existing shareholders including Tengelmann Ventures, subsidiary of the German retail giant, Tengelmann; the Swedish investment company, Kinnevik; and the Asia Pacific, Internet Group, which is Rocket Internet’s joint venture with Ooredoo – formerly Qatar Telecom – in South East Asia, have reinvested in the business to fund its further growth.

    Philip Wegener, MD of PricePanda, said there are tremendous opportunities in the large and rapidly growing Asia Pacific market.

    “We are excited to capitalise on the combined expertise that will enable us to pursue new initiatives in mobile, media, and launching new products and services in the region. We are convinced of the strategic benefits of this alliance, forming a strong market leader with an impressive track record both in technology and operations,” Wegener said.

    Oken said the merger with lifts the growth potential of both businesses to a completely new level.

    “Together we will focus on both extending our lead in the Australian market as well as rapid growth in South East Asia and other emerging markets, including significant investment in scaling our operations team in Manila and our regional sales team.”

  • Aldi comes to the party as grocery code tabled

    Aldi comes to the party as grocery code tabled

    Australian Small Business Minister Bruce Billson has won support for the grocery industry code of conduct from discounter Aldi but is disappointed that wholesaler Metcash has agreed to adopt elements of the code rather than sign up in full.

    The code, which was tabled in Parliament on Monday and takes effect on Tuesday, prohibits certain types of unfair conduct by retailers and wholesalers in their dealings with suppliers and provides a clearer framework for retailer and supplier negotiations.

    Aldi, which was originally reluctant to sign the code until it was confident it would not increase costs and push up prices for consumers, said on Monday it would sign up to the code as a party.

  • Zara opens 1st homewares store in Australia, plans more

    Zara opens 1st homewares store in Australia, plans more

    First it was fashion and now it’s homewares for the fashion conscious with the opening of Zara Home at the Highpoint shopping centre in Melbourne.

    It’s the first homewares store by the Spanish group Inditex – the owner of the Zara label – in Australia but more are planned. There are suggestions the Macquarie Centre in Sydney will be considered for its first NSW site.

    Zara, which is the biggest fast-fashion retailer in the world, has offered homewares in other countries, as does its rival and second-biggest global retailer, Swedish H&M.