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Panasonic Scores Big With Lumix Digital Cameras

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Panasonic Australia have reported record “value” growth for their Lumix camera range during the past quarter with new GFK data revealing that they are now the #1 “value” vendor in the compact digital camera category. The Company is now on track to sell its one millionth Lumix camera in the Australian market.

Panasonic Australia have reported record “value” growth for their Lumix camera range during the past quarter with new GFK data revealing that they are now the #1 “value” vendor in the compact digital camera category. The Company is now on track to sell its one millionth Lumix camera in the Australian market.

Speaking at the Australian launch of their new Lumix compact and camcorder range Paul Reid, Director, Consumer Electronics Group, Panasonic Australia said that 2009 had Panasonic’s its most successful year in the local digital camera.

He also announced thirteen new Lumix models and four new camcorders at a regional Lumix event held in Melbourne. The new Lumix range includes:

· The flagship LUMIX TZ series – the ultimate travel cameras

· The new, more rugged LUMIX FT2 for the active photographer

· The LUMIX FX68 with the latest lens technology

· The feature-rich LUMIX ZR3 featuring AVCHD Lite High Definition Video

· The stylish new LUMIX FP series

· The everyday, family-friendly FH series

· The entry-level F Series of point and shoot cameras

Reid said the results were particularly pleasing during a time when consumer demand in the category appeared to have stalled.

“Panasonic LUMIX value sales over the Christmas quarter were up 68 per cent compared to total compact value decline of around 14 per cent over the same period.” Mr Reid said.

“Consumers are increasingly turning to Lumix to capture their precious memories and we expect this to continue through 2010. Our largest ever LUMIX range brings advanced, premium features to more accessible, everyday models – giving Australian consumers greater value, versatility and quality.”

BREAKING NEWS: Another Senior Exec Quits Samsung OZ

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Brad Wright a senior Samsung Australia executive has quit, he is the third executive to quit the Korean Company in weeks.

Wright who was the Director running the consumer electronics and AV division after Philip Newton took over the role as Marketing Director as well as Vice President at Samsung Australia following the recent resignation of former Marketing Director Arno Lenoir, according to sources, Wright is set to take on a senior role at Schneider Electric.

Earlier this year Richard Noble the Communications Manager at Samsung quit


One head hunter recently told ChannelNews that he has several senior Samsung Australia executives listed on his books.

“These are senior people with a lot of industry knowledge” he said. 

More to follow.  

Harvey Norman Surges 8.8% On Improved Retail Trading Data

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A $20K tax incentive for small business initiated by the Coalition Federal Government coupled with a boom in house sales has paid off for Australian retailers especially for consumer electronics and appliance retailers.

New Data from the Australian Bureau of Statistics (ABS) showed that retail turnover increased by 0.7% in seasonally adjusted terms in June following a 0.4% rise in May. 

The June figure is nearly double the 0.4% increase that economists polled on Bloomberg were expecting.

Electrical and furniture retailer Harvey Norman Holdings Limited surged 8.8% to a more than one-month high of $4.84 – making it the best performer on the ASX 200 index in early afternoon trade.

In the latest ABS data it was household goods retailing that proved to be the brightest star with the category growing by 2.2% as New South Wales led the states with 1% growth. 

Next week JB Hi Fi is tipped to announce an increase in sales despite some CE categories slowing. 

Embattled department store Myer also went up earlier today jumping 3.2% to $1.30 even though the ABS data showed that department store sales slipped 0.1% for the month.

Motley Fool said that “The fall wasn’t as bad as some had anticipated but that is hardly a catalyst for a re-rating in the stock as management is undertaking a rejuvenation program”. 

This year JB Hi-Fi Limited is 20% up since January 2015 and is now trading at $19.46 with a further rise tipped next week.

Another CE retailer that analysts are watching is Dick Smith who yesterday confirmed what ChannelNews has been saying for several months in that they are finally expanding into consumer appliances, setting it up for head-to-head competition with JB Hi-Fi Limited and Harvey Norman as well as the The Good Guys and Bing Lee. 

Dick Smith CEO told ChannelNews that he is looking to grab 10% market share in the $1.7 billion small appliances market which some analysts claim is an optimistic target as he has to firstly get access to several brands and then compete head on with the likes of Harvey Norman who recently expanded their range of small appliances. 

The move comes as several appliance retailer admitted to ChannelNews that it was Aldi who was stripping appliance market share away from them a move which several said was “a real threat”. 

CEO Nick Abboud told Fairfax media, “Just after Christmas a lot of suppliers will bring in products with apps – you won’t have to press buttons on those products, you’ll operate them through your  phone or tablet or even get them on your smart TV .  as we evolve that’s where electronics will end up.”

Dick Smith will establish a small appliance store under the ConnectedHome brand inside Dick Smith retail stores, which will sell toasters, kettles and coffee machines. The retailer plans to install ConnectedHome into 100 stores over the next five months, and will expand its range of personal care devices such as shavers and electric toothbrushes, and introduce new products such as blenders, vacuum cleaners, irons, fans and heaters.

JB Hi-Fi successfully branched into white goods a few years ago, so there doesn’t seem to be much reason why Dick Smith can’t do the same thing said Motley Fool. 

They added “Yes, there will be more competition, but that will generally impact much more on the highest cost retailers, rather than those with ultra-low costs of doing business” 

COMMENT: Should JB Hi Fi Sell Or Stick It Out?

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The 61% increase in revenue and the 70% increase in profits by JB Hi Fi bode well for the consumer electronic industry. It also sends a clear message that consumers are changing their buying habits with many of them prepared to spend money on games, new TV’s and notebooks than over fashion items or the occasional holiday.

And while the CE industry use to seen as “Toys for the boys” many women are now turning to gaming and entertainment devices such as flat screens and DVD players.


For JB Hi Fi the big question is has the Company peaked and is now the right time for the Company to cut a deal with Woolworths.


The answer is most probably yes on both counts. The downside for JB Hi Fi long term is that penetration of the digital TV market is now hitting the 50% mark with the last 50% more likely to want a heavily discounted product.

Also set to impact the Company is that during the next few years we are set to see an explosion in music, gaming and movie content online with consumers bypassing a retail store to buy from their favourite online site which could well be owned by the likes of Sony or a bunch of Hollywood studios. However a big bonus will be July and August sales which will be affected by heavy promotion by CE vendors selling product off the back of the interest in the Beijing Olympics. 

Also set to hurt is the lowering in cost of PC’s and notebooks with the IT industry already feeling the impact of reduced margins.


Right now JB Hi Fi could demand a premium price from Woolworths who have admitted that they are in the market for an acquisition. While on the other hand Woolworths could well decide to sit on the fence for 12 months to see what sort of result JB Hi deliver in 12 months time.

 


Shares in JB Hi-Fi Ltd rose over 4 per cent after the Company beat forecasts for 2008 full-year profit. They have also said that July and August sales are very strong.


The net profit of $65.1 million in fiscal 2008, is up from $40.4 million in 2006/07, as sales revenue rose to $1.83 billion, from $1.28 billion last financial year.


The result exceeded the company’s recent profit guidance in June of circa $64 million, but the retailer has kept its forecast on hold.


What is abundantly clear is that if CE vendors have the right product whether it be a new iPhone or gaming console or the right flat panel TV consumer will find the money to buy a CE device.
It is also clear from the JB Hi Fi and the recent David Jones results that consumers are ditching their traditional spending patterns for new investments in phones, camera’s, games and music along with flat panel TV’s.

After 30% Share Crash Dick Smith Now Tipped As A “Buy”

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After their shares fell 30% some analysts are now tipping Dick Smith as a “buy”.

The retailer that has 400 stores across Australia has been accused of heavy discounting to drive both store and online traffic. 
 
Recent results of the company were met with serious disapproval due to poor same store growth.

But the market is well known for overshooting on the downside, particularly when the overall environment is a volatile one, as it has been in the past few months.

Motley Fool said today “In these situations, investors are quick to “cash in their chips” and take money off the table and park it in cash, rather than allow overall equity market volatility to shake their portfolio. But looking at only the company specific factors, the sell down of Dick Smith appears to be overdone”. 

Why the sell down?

In a nutshell, the market was disappointed by the same-store sales growth figures of Dick Smith relative to its major rival, JB Hi-Fi Limited (ASX: JBH). Analysts had factored in a short-term “sugar hit” to retail company share prices as a result of the budget stimulus measures. But it was clear that Dick Smith did not benefit to the same extent as JB Hi-Fi.

Taking a step back though, investing is a long term endeavour, and while a short term bounce in sales figures based on one-off factors would have been desirable, it is not a good indicator of the overall strength of the company.

The upside factors

There are several reasons that there is more upside for Dick Smith going forward than downside.

The first is a sustainable 8% dividend yield, which goes higher if you are able to gross up the dividends. This dividend appears sustainable as the capital expenditure requirements of the company are well flagged and manageable. Also, profits are not expected to fall – remember, the market sold down the company because of lower profit growth, rather than a decline in profits.

Dick Smith also has scope to continue to grow profits through a store rollout option. In particular, it has the option to grow its Move branded store network. Move stores sell higher margin electronics and accessories which target consumers with high disposable incomes and the desire to personalise their gadgets.

It also has one of the best online offerings for any consumer retailer, with an extensive email database of customers, advanced segmentation and tailored offers for customers.

The company is also adjusting for the falling Australian dollar better than its peers with a well-established, high margin, own brand accessories and hardware product offering protecting margins.

There is an old investing saying that goes “when the time comes to buy, you won’t want to”. In the wake of heavy share price falls, that is exactly the feeling that most investors would have towards Dick Smith.

But looking past the short-term factors could result in a very Foolish reward for those willing to take the plunge.

Dick Smith is a stable stock with a great dividend and growth prospects.

For more information contact www.motleyfool.com 

New Thin iPod & Phone From Apple

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Apple in a partnership with Motorola have unveiled a new cell phone called the “Rokr” and a wafer thin new iPod mini called “Nano”.

The phone plays music downloaded from Apple’s online web site.Apple CEO Steve Jobs made the announcement in San Francisco, capping months of speculation. Also announced is a a pencil-thin iPod called “Nano” will replace the iPod Mini. It is one-third the size of the Mini and holds 1,000 songs.

“It’s impossibly small,” Jobs said at the Moscone Convention Center. “It’s thinner than a No. 2 pencil.” The Nano can store music, games, photos and a calendar. It also has a “screen lock” feature that allows no one except the user to access content.

Steve Jobs Launches The New Phone & iPod

A 4-gigabyte Nano will retail for around $399, and a 2-gigabyte model will sell for around $299. Music-playing cell phones could emerge as a competitor to the iPod, some analysts predict. By branching into phones, Apple would hope to secure its place as the kingpin of digital music regardless of what device is used to listen.

Typically, Apple keeps its new products tightly under wraps, but the new iTunes cell phone has been publicly anticipated for months by analysts and other observers who follow both companies. The phone should be available in Australia from late September through early October “through retail and operator channels”, the companies said in a listing of worldwide release dates.This will revive speculation that Apple may be close to launching its long-delayed iTunes operation in Australia.

Motorola has been known to be working on such a phone for more than a year and in July, company CEO Edward Zander told analysts that a music-enabled phone would be available to customers by the end of September.
Apple in a partnership with  Motorola have unveiled a new cell phone called the “Rokr” and a wafer thin new iPod mini called “Nano”.
Apple is hoping to extend its success with the stylish iPods, which are far and away the world’s best selling portable digital audio players, into the vastly larger but more competitive cell phone market. Sales of iPods and of songs through the iTunes Music Store now account for about one-third of Apple’s revenue.

Motorola, meanwhile, is hoping the Rokr iTunes phone carries on the success the company has found in the past year with the equally stylish Razr V3 cell phones, which since their release last November have become one of the hottest cell phones ever introduced.

Apple and Motorola are hardly the first companies to introduce a cell phone that stores and plays music. In fact, back in November 2000, Samsung launched a mobile phone with a built-in MP3 music player.

Microsoft executives earlier this week tried to blunt the impact of Apple’s announcement by calling journalists to point out that there are about 70 wireless Smartphones or mobile devices that currently on the market that are capable of playing digital music. The devices use Microsofts Windows Mobile or Windows Media software.

“We shipped our first Smartphone in 2002,” said John Starkweather, group product manager for Microsoft’s mobile and embedded products division. “Clearly, music and phones are nothing new.” And while Apple likes to control its own hardware and software, that style won’t work in a cell phone market splintered by numerous wireless carriers and cell phone manufacturers, Starkweather said.

“The challenge for them here is they don’t own the entire experience,” Starkweather said. However, Gene Munster, senior research analyst for Piper Jaffray Co., said Apple’s deal with Motorola could be just the tip of the iceberg. Apple has captured about 75 percent of the MP3 player market, which according to the research firm IDC will amount to 57 million units sold in 2005.

However, the cell phone market is about 13 times larger, with an estimated 774 million cell phones to be sold this year. A Piper Jaffray survey of consumers showed interest in a hypothetical Apple-branded “iPhone.”

 

EXCLUSIVE: South African Company Close To Snaring The Good Guys Say Insiders

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South African-based retailer Steinhoff International, which owns furniture chain Freedom Group, bedding chain Snooze and discount furniture retailer Poco is believed to be close to snaring The Good Guys.


Andrew Muir is understood to have been working with boutique Melbourne-based advisory firm Helfen Corporate Advisory on the deal that became complicated because of a buyback scheme that was being put to franchisee owners of several The Good Guys Stores.

Now we can reveal that management from Steinhoff International are meeting this week with The Good Guys management in Melbourne.

Insiders have told ChannelNews that the deal will be announced in June and that currently Steinhoff management are doing a final audit of the books.
 
This is not the first time that the Company has been pursued by interested parties. 

Three years ago JB Hi Fi management ran a ruler over the mass retailer but the asking price was believed to be too high.

ChannelNews understands that the purchase price is between $850M and $900 Million.
 
The Good Guys which is owned by the Muir family recently undertook a buy-back of 57 joint-venture stores.

ChannelNews understands that The Good Guys management who have been in discussions with Dick Smith receivers Ferrier Hodgson, are looking to close some of their buy back stores while expanding into the Dick Smith stores.
 
If the deal falls through and the receivers are unable to find a buyer for the stores The Good Guys could still approach property or mall owners to take on a new lease. 

The Good Guys are currently eyeing about 20 former Dick Smith shops, which would lift the total number of corporate stores to around 120.

The Financial Review claimed that over the last few years, The Good Guys has been linked to a myriad of potential suitors, including Wesfarmers, JB Hi-Fi, UK retailer Dixons and private equity investors.


In late 2015, The Good Guys’ owners, the Muir family, were understood to be contemplating an initial public offering but that was dropped when the Dick Smith stores went into liquidation.


Steinhoff International, which has operations in more than 20 countries, emerged as one of the largest ?retailers in Australia two years ago after buying fellow South African retailer Pepkor Holdings.


Last week the highly acquisitive company tried to gazump an offer for UK electricals retailer Darty from France’s Fnac and last month it tried to trump Sainsbury’s bid for Home Retail Group.


Muir was believed to have been seeking at least $1 billion when he last entertained offers for the business.

Is Big W & Masters Set To Flogged Just Like Dick Smith?

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Woolworths who are struggling with their Masters and Big W stores could consider flogging the two retail groups in the same way that they offloaded their Dick Smith assets claim analysts.

Back in 2012 Anchorage Capital acquired the Dick Smith assets from Woolworths for an initial $20M and a later payment of $74M, 18 months later the consumer electronics retailer was floated for $344M. The Company was not available to comment on the latest rumour that two more Woolworths assets could go up for sale. 
 
Global buyout firm Kohlberg Kravis Roberts is believed to be circling the struggling Woolworths operation who recently reported a 12.5% slump in profits. 

Several private equity Companies have told ChannelNews that they would be interested in buying the Big W and Masters chains who recently expanded their consumer electronics and appliance offerings.

Last week Woolworths appointed Gordon Cairns as Woolworths’ new chairman.

Shortly after his appointment the former Lion Nathan boss and current Origin Energy chairman signalled that all aspects of the business would come under review, he did not rule out selling Woolworths assets. 

While Woolworths has never been a seller, Mr Cairns’ comments after his appointment on Friday would have offered acquisitive buyout firms some encouragement.

After being appointed chairman, Mr Cairns, a veteran consumer goods executive, told The Australian he had “an open mind” about the future of the Masters hardware store chain and would make a decision based on the facts once he was in the job.

“Given that the facts look so disadvantageous for Masters, we see this comment in a very positive light,” Bank of America Merrill Lynch analyst David Errington, in his research commentary.

Dick Smith To Be Closed Thousands To Lose Jobs, Prosecutions Tipped

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As exclusively tipped by ChannelNews Dick Smith receivers Ferrier Hodgson has moved to liquidate the mass retail group as interested parties walked away from the deal.

The closure will affect 2460 staff in Australia, and 430 in New Zealand.

According to sources the information provided by Ferrier Hodgson was riddled with uncertainties resulting in three powerful Asian bidders walking away from a deal. 

According to a statement released by receivers James Stewart, Jim Sarantinos and Ryan Eagle of Ferrier Hodgson. 

In Australia, 301 stores will close, and 62 stores will close in New Zealand.  

Move stores were included in the closure announcement, and stores located in airports were excluded. 

The fashion-focussed Move concept chain launched in 2013, and grew to a total of 12 stores nationally. 

Mr Stewart said attempts to sell the Dick Smith group had been unsuccessful. 

“While we received a significant number of expressions of interest from local and overseas parties, unfortunately the sale process has not resulted in an acceptable offers for the group as a whole or for Australia or New Zealand as standalone businesses,” he said. 

Mr Stewart expressed his sympathies for employees, and said the outcome was disappointing for them. 

“We would particularly like to thank the Dick Smith employees for their support and patience during the receivership process,” he said.

Employees at head offices and stores have been briefed on the closures today, the statement advised.

They will also be provided with “appropriate outplacement support”, it read. 

All Australian workers are expected to be paid in full.

“All Australian employee entitlements will rank as priority unsecured claims ahead of the secured creditors and are expected to be paid in full,” the statement read. 

“Entitlements of New Zealand employees who are made redundant are preferential claims ranking ahead of the secured creditors, and are expected to be paid in full up to a maximum statutory limit of NZD$22,160 under New Zealand law.”

ASIC Moves In On Dick Smith Directors While Other Retailers Eye Off The Carcass

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The Australian Securities and Investment Commission who have more powers, now that Dick Smith has been placed into liquidation, is set to move on former senior executives of the mass retailer with several former executives supplying key information on questionable business activities at the mass retailer.

The big question now is what was not disclosed to shareholders that should have been disclosed. 


Yesterday Ferrier Hodgson announced that they were set to terminate 2460 staff in Australia, and 430 in New Zealand, all stores in the network will be closed. 

We can also reveal that one the main sticking points for potential bidders was the liabilities associates with the leases for Dick Smith stores as well as costs associated with the restocking of the stores. 

Insiders have told ChannelNews that now that Dick Smith is set to be liquidated, several Dick Smith stores could be taken over on new leases’.

Among the retailers interested in several Dick Smith stores in Australia is The Good Guys who made contact with receiver Ferrier Hodgson earlier this month.

Channel News has also been told that some stores in New Zealand could also be sold separately along with the Move stores in Australia, we understand that 20 key sites in Australia have been targeted by interested parties. 

One interested party is set to enter negotiations to buy the

Dick Smith name and the online operation. 

  
During the next few weeks’ receivers Ferrier Hodgson who has deliberately leaked information to select media in an effort to spin a positive story about Dick Smith is set to make millions from the collapse of the mass retailer while suppliers to Dick Smith are left with millions in losses.

Some distributors could also be placed into liquidation.

Both the National Australia Bank and HSBC are owed over $138 Million however there is little chance of the banks now recovering this money.

Both Indian conglomerate Tata and Chinese consumer electronics retailer baulked at the risks associated with restocking the mass retailers as research showed that the Dick Smith brand was “seriously” damaged. 

Currently ASIC is investigating the actions of directors. Several former employees have already supplied statement to ASIC investigators. They include former buyers and management who walked away from the Company claiming to ChannelNews that they were not prepared to “put up or be tarnished” with questionable business activities.     

James Stewart from Ferrier Hodgson who has ducked away from any serious questions about the actions of Ferrier Hodgson staff running a so called receivers sale or the the actions of former directors of Dick Smith claims that the banks are facing massive losses. 

We have been told that the Banks are already co-operating with ASIC and that information that has been uncovered by the receivers is currently being reviewed by investigators. 

Joseph Hayes from McGrathNicol is believed to have already started a formal investigation into the collapse of Dick Smith which has left executives such as Phil Cave the Chairman of Anchorage Capital whose brand is seriously damaged in the investment community, is laughing all the way to the bank with over $300 Million that Anchorage netted from the float of Dick Smith. 

Dick Smith the founder of the business claims that the business was only worth $90 million and the hype generated by Nick Aboud and Phil Cave was misleading.  

Dick Smith has accused Anchorage Capital the Company that floated Dick Smith netting $520M of “destroying” the business and putting close to 3000 staff out of work.

The founder of the original Dick Smith business said he had no interest in buying back the rights to the ‘Dick Smith’ name or any part of the troubled business.

“I wouldn’t look at buying back the name but I’m incredibly angry about the utter dishonesty of Anchorage Capital and I hope ASIC and the Senate Inquiry do something about them,” Mr Smith said.

Anchorage bought Dick Smith from Woolworths for about $94 million in 2012, before listing it through a $520 million public float 15 months later.


Dick Smith’s inventory was written down by $60 million on December 1 last year, two months after chief executive Nick Abboud issued profit guidance for the 2016 fiscal year of net profit of $37 million to $43 million.

Last week former CEO Nick Aboud did not comment when spotted at Balmoral Beach.

Also ducking for cover is former Chairman Rob Murray.

Hayes is the person acting in the interests of unsecured creditors such as distributors and vendors who have left millions out of pocket. Companies such as Roadhound who are owed over $18M and TV distributor Yale Prima who has told ChannelNews that they are owed over $10.2 Million dollars. 

It is now clear that the unsecured creditors will get nothing.

Then there is the inquiry by Senator Nick Xenophon’s whose inquiry into the collapse of “listed retailers” such as Dick Smith is set to go nowhere as it lacks any real powers other than being a means by which politicians can get media exposure in an election year. 

The Financial Review said that Stewart is reluctant to give precise numbers in relation to Dick Smith’s current financial position except to say that the company has $200 million in inventory and its employees are owed about $30 million in entitlements.

The employees have priority and will get what they are owed, Stewart says.

Stewart will probably pay the suppliers cash to satisfy the retention agreements and then sell the inventory as part of the normal fire sale process.

He has employed an international inventory specialist, Hilco Industrial, to assist him with the fire sale. Hilco is doing well out of Dick Smith. It was hired by the former owner Woolworths to value its inventory before it was sold to Anchorage Capital Partners in 2013.

Anchorage paid about $94 million for the business in 2013 and then sold it to the share market at a valuation of $520 million about a year later.

But Stewart followed the usual process of a receiver by running a liquidation scenario analysis. He found that the secured lenders would be better served by rejecting the purchase offer.

Stewart said in a statement: “The offers were either significantly below liquidation values or highly conditional or both.”

The sale process was affected by the company’s history. Discretionary retailers have been attractive to private equity which has turned them around and sold them to the market.