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EB - it is instructive to see how al-diddle is faring elsewhere:

Financial results published Monday by the U.K. arm of German supermarket Aldi show sales growth last year slowed to 12 percent from 30 percent in 2014. Operating profit fell for the second year running, down 1.8 percent to 255.6 million pounds ($330.7 million). Sales growth is also slowing at the British division of rival Lidl, according to Kantar Worldpanel.


Aldi and Lidl haven't escaped the price war that the big four British supermarkets have been slugging out for the past two and half years. Tesco's recent move to cut the prices of fresh meat, fruit and vegetables hits the pair where it hurts, because fresh food is their sweet spot. Asda's dismal performance may lead it to open up a new front in the price war, while Sainsbury and Morrison are showing no signs of capitulating.



its generally accepted the UK is the template for moving to Australia.

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the real reason that made think that Lidl won't come to aussie is that we only have little over 20mil population and we already have discount retail Aldi, and costco , the labour cost is weee higher than others. i reckon after Lidl done a proper calculation they won't come here. it's all just that---rumours.

but you never say never, if they come like uniden believed, then all hell of price war will break out

we customers will be the big winner if that happens, :lol:

look out for this space, at moment i think it's BS.



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Woolworths Ltd. (WOW) is considering selling its petrol business, saying on Friday it has received proposals from several companies interested in its portfolio of service stations.


"Woolworths has received incomplete and conditional proposals from a number of parties in relation to the purchase of the business and the development of an enhanced convenience and loyalty offer to its customers," the Sydney-based company said in a statement.


Woolworths said it remains in talks with an unspecified number of companies. The retailer - which, on its website, says it runs more than 600 petrol outlets across the country - did not name the interested companies, or provide an indication of what price they might be willing to pay for the business.


Caltex CTX ?

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Maybe some Woolies execs went to the car show in Paris and saw that a number of the big car manufacturers are shooting medium term for electric vehicles with a range of 350-400 km (?).




I read somewhere that Woolies petrol sales were down about 2.4% for the year just gone. If electric vehicles take off in the next couple of years then petrol sales may well start falling in double digit percentages. Of course Caltex knows all this and knows that Woolies is a distressed seller so they may play hardball in negotiating a price.


As an aside, the coming of the EV era and the resultant shrinking of the retail market for petrol means that the ACCC will likely take a lenient view of consolidation within the sector (???).

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triage.... maybe the Board of WOW is distressed, but I don't think the company is.


& CTX is morphing into a retailer with petrol (as loss leader/ convenient place to park?)

Over the past five to six years, Caltex has transformed its business and built new capabilities to create a market leading transport fuels supply chain, while successfully delivering top quartile shareholder returns. As a proud Australian company, our strategy has delivered strong results and continues to position us as the leader in transport fuels in the nation, with a strong retail convenience presence. We aim to be the market leader in complex supply chains and the evolving convenience market place, by delivering the fuel and everyday needs of our diverse customers through our networks. This is captured in our vision ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ Freedom of Convenience.
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Just some random thoughts...


I read somewhere that the hit from Masters to WOW's balance sheet is a biggy. No doubt Woolies is a blue chip and the Masters fiasco will not change that but perhaps its institutional backers and its bankers would prefer it to get its balance sheet metrics back into better order.


The other thing is that they still have to do something decisive with Big W. It is a dog with fleas (as is Target and K Mart for Westfarmers). If they bite the bullet there and close down that brand then that will be another sizeable balance sheet hit.


With regards fueling cars in the future, Woolies is ideally positioned to set up charging stations in their carparks for EV's, and just about every Woolies supermarket comes with loads of parking bays. Punters can plug into a charging station whilst they do their shopping for an hour or so. Petrol stations on the otherhand usually only have parking bays for a few cars - even the combined convenience store / petrol station ones - and there is little reason for a motorist to hang around a petrol station for 30 minutes or more so they will lose all the EV business. Whilst I cannot convince myself that self-drive vehicles will become too common in the medium term I do think electric vehicles are a chance? Remember that electric vehicles and public transport in the early 20th century was killed off by the IC vehicle manufacturers but this time round many of the big IC vehicle manufacturers are at the vanguard of EV technology. So yes I reckon EV's will be a substantial part of the new car market in the next 3 or 4 years.

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A well-received result from Britain's largest retailer, Tesco, has raised the spotlight on how quickly Australia's biggest retailer, Woolworths, can turn its ship around.


Investors have compared Woolworths with Tesco. Once the most profitable retailer in Britain, Tesco posted a record ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£6.4 billion ($10.48 billion) loss last year thanks to ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£7 billion ($11.46 billion) of one-off charges and sliding sales.


Tesco's stores had been widely criticised as understocked, understaffed and overpriced. And Tesco ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ like the other big supermarkets Asda, Sainsbury's and Morrisons ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ had been under increased pressure from German discount chains Aldi and Lidl, which have an estimated 10 per cent market share.


Woolworths until recently had the highest supermarket profits in the world. But it has come under pressure thanks to the resurgence of major rival Coles, the aggressive expansion of Aldi, its disastrous investment in the home improvement market, and troubles at its discount department store Big W.


"Woolworths in our view faces the same dilemma Tesco faced in the UK," Bank of America Merrill Lynch analyst David Errington wrote in December 2014. "Margins in its core business are too high, and are compromising long-term competitiveness."


But Tesco's shares soared to almost a two-year high last week as it forecast margins to rise to 3.5 per cent to 4 per cent, announced plans for a further ÃÆâ€â„¢ÃƒÆ’ƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚£1.5 billion in cost-cutting, and posted three consecutive quarters of same-store growth in the UK and Ireland.


Tesco is cutting product prices, slashing product numbers and reducing its reliance on promotions. Its chief executive Dave Lewis told investors, "We feel that we've got our business to a place where it is stable and competitive again."


Joshua Ross, of Watermark Funds Management, said management had returned the focus to shareholders and margins, rather than "stopping the ship from sinking".


Alphinity Investment Management's Bruce Smith said the market always embraced "the last of the bad news".


"If Woolies follows Tesco's timeframe that would still be another two years or so away. It will happen one day but I'd be surprised if it is this soon," he said. "Six months into a new CEO [brad Banducci] would be a good effort; he keeps saying it will take three to five years."


Woolies shares are up 0.8 per cent at $24.09.



it triggered my shorts stops at 24.00. now i don't hold any positions---long or short.



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