Page 33 - HW July 2020

global eyes
sales +1.8%, thanks to strong demand in the DIY categories, particularly paint and garden and some forward purchasing in trade in anticipation of restrictions lifting.
Total wholesale like for like (LFL) sales to the IHG group saw a full year decline of 1.1%, while retail LFL sales also saw a full year decline of 0.7%, despite a second half lift.
Online sales increased by as much as 40%, albeit from a relatively low base, admitted Metcash.
Roughly coincidental with the year- end numbers, Metcash announced it was proposing to buy 70% of Total Tools, the franchisor of the Total Tools specialist tool retailer network, for AU$57 million, with an option to buy the balance.
Total Tools is the franchisor to the largest retail tool network in Australia with 81 retail stores, which generated sales of AU$555 million for the 12 months ended 31 December 2019.
Although the 81 stores aren’t included in the purchase, over time, says Metcash, it’s looking for a mix of store ownership, including both independently owned and JV retail stores.
e proposed acquisition is subject to approval by the ACCC; the watchdog’s
decision is scheduled for end August.
www.metcash.com.au
SO FAR SO GOOD BUT CAUTION ADVISED
In terms of a forecast, none of the major Aussie corporates at nancial year end have wanted to commit to an outlook.
However, by the end of June, Paul Zahra, CEO of the Australian Retailers Association, whilst positive, at least felt motivated to warn against hoping for too much in the coming months.
He says: “Whilst the preliminary ABS retail trade gures for May showed a signi cant rebound, we are mindful
that this is still elevated by suppressed spending through lockdown, and trading within discretionary categories remains very challenging.
“Whilst we are optimistic that the worst of the pandemic is over locally, COVID-19 is a global issue and there may still be ow-down impacts on supply chains and tourism.
“ ere is likely to still be some pain to come for some retailers, particularly after government measures are withdrawn in September,” he concluded.
www.retail.org.au
Amazon banks on robots for the Lucky Country
Just a week after Qube Holdings and Woolworths Group announced they were investing in two new state-of- the-art distribution centres in Western Sydney, at the end of June, Amazon Australia also announced plans to open its rst Amazon Robotics ful lment centre (FC) and its second FC out west.
Scheduled for completion in late 2021, the new centre will boast Amazon Robotics technology to better deliver
“a smarter, faster and more consistent experience for its customers around Australia”, as well as creating more than 1,500 new jobs for humans.
The robots help speed order processing by moving shelves to employees and allow space savings, so 50% more items can be stowed per square metre.
The West Sydney ful lment centre
will have a massive total oor area of around 200,000m2 across four levels and house up to 11 million items, more than doubling Amazon’s operational footprint in Australia.
In terms of context, Australian Logistics Council (ALC) CEO, Kirk Coningham, says: “The COVID-19 pandemic has reinforced the importance of e cient, safe and resilient supply chain operations in Australia, and clearly the industry is seeking to maximise the opportunities presented by robotics and automated technology to deliver greater reliability for its customers.
“This will also require a very di erent skill set among the sector’s future workforce going forward.
“People will need to be comfortable operating sophisticated IT systems
and equipment, in vehicles and in distribution centres and terminals, as customers demand greater visibility over freight as it moves through the supply chain.”
Amazon Australia’s Western Sydney announcement followed news of
the go-live later this year of its rst Queensland ful lment centre in Brisbane. The new facility is located at Goodman’s Port Industry Park in Lytton, Brisbane and will house more than half a million items from its Australian website.
www.amazon.com.au
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JULY 2020 | NZHJ 31