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.