AUSTRALIA: Coles Myer aims for department store turnaround
Australian retail giant Coles Myer is determined that it will turn around its loss-making department stores after the company failed to improve on its reduced profit forecast.
The company has reported an annual net profit of A$353.8m (US$193.2m), which meets its previously stated forecast of $350m. The posted net profit is up 6% from the year earlier value.
Coles' shares rose by 5% to their highest closing value in more than two months, after experiencing a 29% drop in value since February.
The company's sales increased by 8.7% in the last year, to $25.5bn. Coles Myer is Australia's largest retailer in terms of sales, but the company's main rival in the Australian retail market, Woolworths, has been making up ground, closing the gap between the two retailers' sales figures to just $1bn.
Coles Myer said its Kmart and Target discount stores are gradually improving, but its department stores remain the weak link in the chain. For the first time in five years, Kmart reported a sales increase and an expansion of its market share. It is hoped that Coles' Myer Grace department store division will achieve a similar turnaround this year.
The problems of the company's boardroom split still remain, with chairman Stan Wallis due to leave the company after the 20 November annual meeting. The board has yet to decide on Wallis' successor, reported Reuters News.
In the second part of this week's focus on the Australian food retail market, David Robertson looks at Woolworths' main rival, Coles Myer, which accounts for around 16% of all retail spending in Austr...
With 76% of Australia's food retail market, just two companies, Woolworths and Coles, dominate the region. In a two-part review, David Robertson looks at both supermarket chains. The first article wil...
Australian retailer Coles Myer has reported annual sales up 13.3% to A$36.6bn (US$28.1bn) and said it is considering selling its Myer department stories....
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Supermarket chain Coles Myer has agreed to support a food industry proposal to promote the benefits to consumers of buying Australian-grown produce, according to the Age newspaper....
Supermarket chain Woolworths Ltd has refused to comment on reports that it is considering the sale of its A$1bn (US$753m) chain of national distribution centres, according to the Australian Associated...
Retailer Foodland has announced a delay in documents needed to complete the process of its demerger and sale to Woolworths and Metcash....
A charter promoting fair competition between potential buyers of independent supermarkets has started, Australian Competition and Consumer Commission chairman, Graeme Samuel, has announced....
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