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FMCG & Retail Update

by Sarah Adamson

FMCG and retail news update with Sarah Adamson

Aldi Launches in Western Australia

  • The long wait is over. Aldi has finally arrived in Perth much to the delight of expectant local consumers. The first four of 70 planned Aldi supermarkets for Western Australia opened on Wednesday June 8 in Joondalup, Mirrabooka, Belmont and Kwinana.
  • In a similar scenario to Aldi’s arrival in Adelaide just six weeks prior, queues of consumers up to 400 metres long waited for the doors to open and the commencement of trade.
  • The widespread pre-opening consumer recognition of the Aldi brand name, awareness of the predominant private label product range, and the positive anticipation about the lower price structure is testament to the forces of the global marketplace and the influence and omniscience of social media.
  • Local media were generous and positive in their promotion of the Aldi launch event, beginning the preceding Friday, when the media were granted access to the each of the new stores.
  • Aldi will confront a strong competitive force in the form of a network of professional, well-appointed IGA supermarkets.

Source: InsideRetail

 Coles, Aust Post among most influential brands list

  • Coles, Telstra and Australia Post have made it to the top ten on Ipsos’ Most Influential Brands 2016 list, with technology giant Google topping the list for the third consecutive year.
  • Supermarket giant, Coles, jumped up on the influential brands list to be the highest ranked local at number five and Australia Post made it to the list at number eight despite its rapidly shrinking mail business. Telstra is at number six.
  • Big US tech companies continue to drive influence with Microsoft at number two, followed by Apple at number three and Facebook at number four.
  • According to Ipsos, the brands are ranked on the following factors engagement, trust and presence, among others.
  • “When it comes to which brand is most trustworthy, or is the most innovative, or is most engaging, the answer can be a very personal one,” said Gillian O’Sullivan, marketing managing director at Ipsos.
  • O’Sullivan said in studying the concept of influence, they have learned that it is difficult to achieve and the pathway to influence differs from brand to brand.
  • “This has indeed been one of the most interesting learnings from this study which can help marketers identify strategies to improve their brand’s influence,” she said.
  • The Ipsos Most Influential Brands study was based on an online survey of 2,003 Australian adults using the Ipsos panel in November and December 2015.

Source: Sky News 

Shaver Shop grooms plans for ASX

  • Grooming products retailer Shaver Shop Group hopes to list on the Australian share market in a $98 million public offer on July 1.
  • Shaver Shop currently has 99 owned and franchised stores across Australia and New Zealand, selling a range of personal grooming products, electric shavers, clippers and trimmers.
  • Shaver Shop hopes to raise about $98 million through an initial public offer of 93.4 million new and existing shares priced at $1.05 each.
  • “A public listing is a significant milestone for a business that goes back almost 30 years and will position Shaver Shop to expand in a rapidly growing industry across Australia and New Zealand,” Shaver Shop chairman Brodie Arnhold said on Tuesday.
  • The group is aiming to have 145 stores in Australia and New Zealand.
  • Some of the funds raised from the share offer will be used to repay most of Shaver Shop’s bank debt in a move expected to give Shaver Shop greater capacity to roll out new stores, the group said.
  • Funds will also be used to pay existing shareholders and management shareholders who sell existing shares.

Source: InsideRetail

Michael Hill to expand Emma & Roe brand

  • Jewellery retailer, Michael Hill, will expand its Emma & Roe brand after a successful trial and move into growth mode effective July this year.
  • The group said 12 new stores are planned for 2016 to 17, which will be opened in Queensland and NSW. This number could grow to 20 stores in coming years depending on the ‘availability of quality sites on acceptable commercial terms.’
  • “We are building a strong online presence for Emma & Roe in Australia and this will follow into our other markets as the E&R stores are established,” said Mike Parsell, CEO of Michael Hill.
  • The jewellery retailer stated it sees potential for at least 300 Emma & Roe stores in its existing markets of Australia, New Zealand and Canada, a similar number to its Michael Hill brand.
  • New store ROI is forecast to exceed the group’s ROI hurdle rate from the first full year of trade and grow further as the roll out develops.
  • Parsell said Emma & Roe will deliver strong, profitable growth from consumer segments that complement their existing Michael Hill brand. He added they trialled the brand for two years to assess its potential and fit within the group.

Source: InsideRetail

Networked fridges in JB Hi-Fi future

  • For JB Hi-Fi boss Richard Murray a fridge isn't just a fridge - it's part of a future where homes are networked and whitegoods are just another part of a tech retailer's offerings.
  • "Our view is: when people are coming into a JB Hi-Fi shop, if they can buy a Samsung TV, a Samsung tablet, but they can't but a Samsung fridge, that's going to be a challenge for us over the next five-plus years," Mr Murray told a conference on Wednesday.
  • JB Hi-Fi's growing interest in the whitegoods and home appliances sector is spurred by the fact that in the near future, people's homes will have more interconnected appliances and services.
  • Mr Murray said JB Hi-Fi needed to ensure that it could offer the full suite of products from its various suppliers
  • Furthermore, JB Hi-Fi's software business was not growing and the company needed to find a new business to compensate for that.
  • JB Hi-Fi has held takeover talks with whitegoods retailer The Good Guys, but Mr Murray gave no indication of the progress of the negotiations.

Source: Yahoo 7 News