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After a decade of squeezing their supply chain, [Coles and Woolworths] are now looking more closely within their own walls to try and create some margin growth.


In particular, they are rethinking exactly how many staff they need and how to use the 200,000-or-so people who work at the two supermarkets as effectively as possible.

... Woolworths two weeks ago announced an overhaul of how it staffs its stores. It says that the restructure will not result in net jobs losses, but unions say thousands will either take a pay cut or leave the business.

- but then, the employees have moved to awards from Enterprise Agreements, and the management has now to deal with escalating wages costs.

I've become aware that WOW has just signed with Montreal based WorkJam,...https://www.workjam.com/ ,

WorkJamâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s Digital Workplace technology is designed to bring your workforce together through agile scheduling, transformative communication, experiential learning and tailored recognition seamlessly through a single user experience.

Interestingly, a significant win for WorkJam was implementing an earlier iteration of their platform with Target Australia over the last few years. (see website). This has been a success and it was described to me, for the efficient operation of their workforce, enabling the large numbers of staff to be rostered on effectively, all from the App. (Optimize labor and employee engagement by reducing manager workloads and giving employees the tools to easily manage availability, time off, schedule changes, swaps, filling open shifts and more.)


If you think there are 200,000 employees in Coles and Woolies, Australia wide, and the ability to coordinate levels from an App, then no wonder the middle-managers are worried for their jobs as 'people management' is centralised/ digitised.

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Woolies to shed pubs & drinks & spin them off


Intention to separate Endeavour Group following merger of Endeavour Drinks and ALH


Woolworths Group Limited (âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‹Ã…“Woolworths Groupâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢) is today announcing an agreement to combine its drinks and

hospitality businesses, Endeavour Drinks and ALH Group (âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‹Ã…“ALHâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢) into a single entity expected to be referred to

as Endeavour Group Limited (âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‹Ã…“Endeavour Groupâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢). Following the combination, Woolworths Group intends to

pursue a separation of the business through a demerger or other value-accretive alternative. The separation is

expected to take place in calendar year 2020.


Woolworths Group Chairman, Gordon Cairns, said: âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“The Board believes that a merger of Endeavour Drinks

and ALH followed by a separation, is in shareholdersâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ best interests and will benefit customers and team

members of both groups. The decision has been taken after consideration of the future prospects of both

businesses and how they can be best realised. It reflects the Boardâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s focus on maximising long-term

shareholder value.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ


Bruce Mathieson Senior of Bruce Mathieson Group (âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‹Ã…“BMGâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢), Woolworths Groupâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s joint venture partner in ALH,

said: âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Woolworths Group and BMG have enjoyed a long and successful partnership in ALH since 2004 which

has created significant value for both sets of shareholders. This transaction is the natural evolution of the

partnership and will allow Endeavour Drinks and ALH to reach their full potential. We look forward to continuing

the partnership for many years to come.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ


The separation will allow Woolworths Group to benefit from a simplified organisational structure, a greater focus

on its core food and everyday needs markets and opportunities to continue to build out the Woolworths Group

retail ecosystem. Separation will also allow Endeavour Group to realise its full potential through business

simplification and efficiencies with greater access to capital to pursue investment and growth, while retaining

the benefits from a strong partnership with Woolworths Group.


Woolworths Group CEO, Brad Banducci, said: âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Over the past three years we have progressively moved from a

period of fixing the basics as part of our turnaround to investing for the future as part of our transformation. As

we look to build customer differentiation in all of our businesses, and prepare for an agile and digitally-enabled

future, we have decided to simplify Woolworths Group through a combination and subsequent separation of

Endeavour Group.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ

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Of course I meant ESG

Environmental, social and governance refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business.


These criteria help to better determine the future financial performance of companies (return and risk).

- The virtuous dollar is playing a greater part of the investment process though, for the management at Woolworths, it probably is more an analysis of growth options and getting back to basics, having a cleaner simpler model for the market to understand.

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Woolies to shed pubs & drinks & spin them off


Now closing 30 Big W Stores as profit tumbles


Key points:

Excluding the impact of the sale of its petrol franchise, Woolworths' normalised profit fell 7pc to $1.5b, well short of analyst estimates

The $1.7b sale of the petrol business supported a 9pc jump in the full-year dividend to $1.02 per share

Big W continues to be a drag on profits, with 30 stores earmarked for closure


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Woolworths investigated after admitting it underpaid 5,700 staff up to $300 million

Key points:

Woolworths says the underpayment of staff dates back to 2010 and may involve up to $300 million in unpaid wages and entitlements

About 5,700 people will receive their full entitlements, including back payments with interest and superannuation contributions

Woolworths CEO Brad Banducci has apologised and promised it won't happen again


read more - https://www.abc.net.au/news/2019-10-30/wool...ection=business


and it appears the ABC, who authored this article, is also being investigated for underpayment


The ABC is also being investigated for the alleged underpayment of 2,500 flat-rate casuals over six years.


In its 2018-19 annual report, the ABC said it put aside almost $23 million for the potential "estimated historical salary and wages and superannuation entitlements owed to certain casual employees".


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Dan Murphy's, which carved out a 30 per cent share of the $16 billion packaged liquor industry with a category killer format, is testing smaller stores to reach into previously inaccessible markets. Most of Dan Murphy's stores are between 800 and 900 square metres (sq m) but the retailer is opening stores half that size stocked with a highly curated range based on customers' online ratings.


The first 400sq m Dan Murphy's, a converted BWS bottle shop, opened at Elanora Heights in Sydney's northern beaches last month. The Elanora Heights store stocks only 2700 stock keeping units (SKUs)âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ almost half the 5000 SKUs at a typical Dan Murphy's big box store âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ but all the products have received an online rating of four or above by customers.


The ratings are displayed on electronic shelf-edge labels linked to Dan Murphy's web browser and are updated in real time, giving customers daily feedback on the most popular and top-selling wines, beers and spirits.


The scaled-back Dan Murphy's is one of three new formats being tested by Endeavour Drinks as part of a strategy to revitalise sales ahead of a merger with Woolworths' 75 per cent owned ALH hotel and gaming operations and a likely stock exchange listing next year.


After decades of strong growth, Dan Murphy's sales growth has slowed in recent years as consumers have opted for quality over quantity, while earnings have come under pressure as the retailer invests heavily in digital and delivery...

interesting it's a converted BWS (= expensive) site; vertical pricing works only so well. You'll find BWS near restaurants and what they sell is usually opened within 15 minutes!?

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Morgan Stanley believes the time is right to start to differentiate between the Australian supermarkets, after a stellar year for the share prices of both major operators in 2019. The broker upgraded Woolworths to equalweight from underweight and downgraded Coles to underweight from equalweight as part of its review of the sector. It lifted its price target on Woolworths to $36.50 from $28 and also lifted its price target on Coles to $13.50, from $13.


âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“In 2019 it paid to own both stocks,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ Morgan Stanley said. âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Both benefited from investorsâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ appetite for staples with a bias towards blue chip exposures not linked to financials.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ "The return to earnings certainty and acceptable yield certainly assisted an appetite for investors to focus on a broader defensive bid for Australian equities regionally through 2019.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ


Morgan Stanley said that itâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s now looking for strategic execution as a differentiator between the companies. âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Our valuations place Coles at a 20 per cent discount to Woolworths. This reflects our view that Woolworths is better positioned to leverage improved industry dynamics,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ it said. âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Conversely, for Coles we see greater scope for leverage leakage as it looks to build sales momentum.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ

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Supermarkets forced to rapid scale networks.

Customers fretting over setting foot in high-traffic retail outlets like supermarkets are creating online and logistical headaches for Coles and Woolworths, with the nationâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s biggest merchants buffeted by online buying surges that have stretched delivery networks.


Woolworths on Tuesday confirmed it was gradually restoring its âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Delivery Nowâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ service for online purchases in Sydney after it unexpectedly pulled the short time fulfilment service late last week.


The suspension came amid frenzied consumer purchasing behaviour across products ranging from toilet paper to tinned tuna and microwave rice fuelled by uncertainty around the extent of Covid19 infections in Australiaâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s cities.


âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Delivery Now was temporarily suspended in Sydney from Wednesday to Sunday,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ a Woolworths spokesperson told iTnews.


âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“We opened up Delivery Now orders from eight Sydney stores on Monday. We plan to have all 32 stores up and running again by the end of the week.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ


Coles is understood to have been hit with a similar surge, with reports saying it has been directing online customers to click-and-collect facilities rather than home deliveries for online purchases.


And while the sudden surge in online orders might look like a big bonus for the retailers, the reality is that both the major supermarket brands have only just made online sales profit margin accretive, with click-and-collect the gamechanger.


Whatâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s less clear is whether the limitations around online delivery have propelled consumer anxieties over the availability of some goods as retailers impose purchasing limits on items like toilet paper to rein-in the run on stock.


Woolies says it is doing its best.


âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Like our supermarkets, our online teams have been working hard to manage higher than usual demand for deliveries over the past week,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ a Woolworths spokesperson said. âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Delivery windows have been filling up faster than usual and we apologise to customers for the inconvenience this has caused. âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Weâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ve been ramping up our delivery capacity with the support of our transport partners and doing all we can to fulfil orders for our customers as quickly as possible.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ

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