Brandish is one year old tomorrow. Who said it wouldn't last?

From a tentative start, going out to 750 people, we now reach the inboxes of more than 30,000 each week.

Brandish went live on 31 August last year. Along with everything else we have produced that first issue is still online; broken and battered, with most of the links inactive, .

In the first Brandish, we got some things right – and some things very wrong. We quoted someone saying oil would be down to $35 a barrel within a year, and that retail spending had troughed.

We think we got the challenges facing Myer right; but that's still a work in progress.

We got the email format right. Emailing Brandish allows us to bring you news that has happened right up to the minute before publication. Email also means that along with 4000 words in Brandish, you can access around 100,000 words of retail wisdom via links.

Recently, Brandish was able to quickly bring you insights into the bid for CML.

We had two issues containing or linking to tens of thousands of words on your screen before subscribers to the snail mailed Inside Retailing Weekly received a word. And to think that some pay almost $500 a year to receive news and views six to fourteen days old. Today we bring the national retail sales data moments after release.

Brandish, like Myer, is a work in progress. We will never get it right; but we will sure have fun trying.

The CML share price moved up again. Having jumped on the initial news then drifted for a few days, the price again rose last Friday to $13.92 amid a story that competing private equity groups have formed a mega bid syndicate. Rumours had Kohlberg Kravis Roberts (KKR) being joined in the syndicate by Blackstone, Bain, The Carlyle Group, CVC Asia Pacific and Newbridge Capital. The Goths and Huns had joined with the Vikings.

Another report had KKR as a front for Wal-Mart. If Wal-Mart became a lead player in the Australian retail scene, it would be a huge change, far greater than any equity capital player. Wal-Mart would shift the company into heavy discounting, terrifying the rest of the industry.

This week we spoke to one of the larger food suppliers to Coles & Woolworths. They are watching with interest and clearly feel less vulnerable than some growers.

What we all need is diversity and strong profitable retailers. Although it has quietened a little, there remains an undercurrent about keeping Coles Australian, as though our national well being would be lessened by a foreign takeover.

Our national interest is best served by well managed companies, performing at or near their best. If KKR or Wal-Mart or any other barbarians believe they can do a better job, seeing the company as a bargain, and offering a higher price than what the current shareholders believe it is worth, let them have a go.

New owners are able to bring in the right expertise and a leadership team less shackled by history and politics. Without the need to satisfy shareholders each quarter, these leaders are able to take a longer term view and drive the business.

Intervention that results in bailing out the board of an under performing company or propping up second rate managers is not in the national interest.

Terry McCrann believes Coles is on borrowed time. “… if Fletcher and Co think they can return to the status quo ante, otherwise known as Coles Myer's (sic) second five-year plan, they'd better think again. And fast.”

The board seems to be taking the smart approach, not allowing the bidders to look at anything too closely just yet.

As The Age reports: one of the problems for private equity firms in trying to force Coles into play is that they face a catch 22 conundrum; they are reluctant to offer anything that is unconditional or to which Coles is forced to respond formally without conducting due diligence; and Coles is unlikely to allow a due diligence process unless it has something firm and reasonably unconditional to respond to.

There would be some flow-on effects of a CML sale. It will push about $16b back into the Australiana equity market, at a time when T3 may pull $8b out.

A sale is also a portent of a shift in ownership patterns of Australian businesses. It's only just begun.

There was a silence deep as death;
And the boldest held his breath,
For a time. - Thomas Campbell.

Fletcher and the board are not spending all their energy staring down the barbarians.

Prior to the release of the poorly received five-year strategic plan, a review found that Coles' administration was 25-30% fatter than comparable retailers elsewhere in the world.

Coles Myer announced last Thursday that 25 senior management roles will be abolished, a portent of a 17% cut in senior management positions. Duplications across Marketing, HR, Property and Finance will be culled or undergo big changes.

Coles' spinner Scott Whiffin said managers whose role will undergo major change (either abolished or more than 30%) will be given the opportunity to apply for a new function. We suspect many will also be calling their favourite head hunter and scouring the papers for a new gig.

The uncertainty will further damage morale and is an example of the ham fisted way that Coles can manage people issues. Get an announcement out that might impress the market - but leave the people it affects in the dark.

… it is a good thing to kill an admiral from time to time to encourage the others. – Voltaire.

In 1996, when Orex placed our first candidate at Bunnings, their show was just getting on the road, having just opened their fifth big box store. You know what Bunnings has grown to become – stores everywhere, sales of more than $4 billion and profitability & a share price you've got to love.

Orex has found more than 500 leaders for Bunnings. They include Buyers, Category Managers, Store Managers, Regional Managers and leaders in Property, HR, Marketing, and Loss Prevention.

Orex has helped Bunnings grow to become one of Australia 's biggest retail successes.

“ Bunnings has had a great working relationship with Orex Recruiters for the past ten years. Orex has played an integral part in our growth by sourcing culturally aligned people to lead our support office and store teams and have assisted in the execution of our business strategy. Orex has consistently acted on our behalf in both an ethical and professional manner”.

Martin Duffy

Bunnings Human Resources

Orex made a difference at Bunnings - and we can make a difference for you.

Weather affects retailers. It keeps people indoors or drives them outside. Rain drives shoppers from High Streets to centres. And I always thought the first great weather weekend in Spring put a temporary brake on shopping in Melbourne, but got people into the garden or in front of a BBQ the following week. No weather pleases everyone.

The garden supply sector is in for a tough time as restrictions on watering will be in place in much of the country this spring and summer.

Spring is likely to be warmer and drier than average in much of the country.

According to the Bureau of Meteorology Seasonal Temperature Outlook, the chances are above 60% for higher than normal maximum temperatures across most of the tropics, southwest WA and a large part of south-eastern Australia. In northern Queensland and the north of the NT, the probabilities are between 70 and 85%.

The rainfall outlook shows a mixed pattern of odds, with below average totals more likely in northern Australia and a few patches in the southeast, while the chances favour wetter than average conditions in southwest WA, the Bureau of Meteorology announced today.

A warmer summer will be a boost to sales of outdoor furniture and pleasant weather gets people out shopping for pretty much everything – except greenlife and sprinklers.

Sale Searcher started life when one of the founders needed to buy some leather shoes! Seeing as these were relatively expensive shoes, he wanted to get a good deal. He asked around about what sales or discounts were about, but every time he found out about one he was too late getting there and all the good deals & shoes had gone! So, he figured that this information should be made available to everyone and that it helps both the people buying stuff and the people selling stuff.

Thus, six months later with the help of an IT guru, SaleSearcher.com.au was born!

The website gives free advertising of sales & bargains for shops. The website is only for sales & discounts and is a new forum for advertising these events - it supplements TV, and other media for advertising sales. The site has thousands of people 'looking' for sales searching through the advertised sales to find out where to spend their money - a great source of revenue for those that advertise.

SaleSearcher has two core aims in life. It is designed to help people save money and time through the provision of information about the what, where and when of retail sales; and it aims to deliver a cost effective and high-performing advertising solution for businesses having sales.

Bargain hunting on the Internet is in its infancy in Australia. We have few comparison shopping sites here but it is a growing trend in the US.

Last week Rod Williams of Push Retail wrote of the importance of planning, reviewing and driving a roll out.

This week he discusses managing the resources.

Resource as much as possible from within the business. Supplement with suitably-qualified external resources for Property, Design and Construction Management expertise; either on the payroll or as consultants. Don't think that just because (say) an Operations Manager is a good leader, he'll be able to take on and drive any of these specialised functions.

People from stores will usually pick up fit out-related roles; having worked with fixtures and done relays. With flair and some training, they might be suitable for a planning or project coordination role and eventually even project management. But all of this needs to be done over time and under strong leadership; experienced in the particular field. Importantly, you need real succession planning, not just lip service.

People involved in the store development process must all have their KPIs aligned. It's no good having a property team being measured on how many sites they can sign up (and how quickly) if the store design and development people are measured on the quality and cost of the finished developments. You have an inherent conflict here before you even start!

Don't compromise on your site selection criteria. The property people need to be measured on quality too. Retailers who have settled for second-best – just to get the (site) numbers - have paid the price (and continue to pay the price over the term of the lease!)

Minimise the lag between any rollout and a follow-up maintenance strategy. We don't mean maintenance here just in the literal sense – we're also talking about upgrading, and improving stores to maintain the leading (retail) edge and there's always those other “rats and mice” (improvement) projects to deal with. It's often wise to separate “maintenance” from “development” – even with a separate team so that the development team is never distracted from its primary function: rolling out new stores.

Rod Williams of Push Retail is happy to talk to retailers about rollouts and upgrades. Call 03 9415 9413.

October 16 – 20, 2006

In difficult trading environments, it is crucial that retailers come to terms with the new multi-channel complexities of marketing, distribution and customer relationship management.

Strategic Value Optimisation in Retailing, is a unique program brought to you by the Australian Centre for Retail Studies.

Designed for senior managers, the program tackles value optimisation on a number of different fronts, providing a scientific approach to decision making that integrates and leverages each business component.

Facilitated by international retail management educators Professor Dale Achabal and his colleagues from Santa Clara University, USA, this 5 day residential program explores the new world of multi-channel retailing.

For full program details contact the ACRS on Ph: 03 9903 2455 or email: acrs@buseco.monash.edu.au.

Alternately visit the ACRS website.

The BlackBerry can be as addictive as the smokes, according to a US study.

A researcher foresees the day when workers will be able to sue their employers for insisting that they stay in touch with the office at all times.

The fast and relentless pace of technology-enhanced work environments creates a source of stimulation that may become addictive. In other words, if you set off on holiday with your BlackBerry, laptop and mobile phone, you may lose forever the ability to shut work out of your mind and relax.

Traditionally an anti organised labour business, Wal Mart now has its own branch of the Communist Party.

Further upsetting conservatives, Wal Mart is engaging more of America 's pluralist society by joining the corporate advisory council of the National Gay and Lesbian Chamber of Commerce. But not all of its usual supporters - nor some gay activists - welcomed the announcement.

The American Family Association now has two reasons not to shop at Wal-Mart. They are upset because Wal-Mart says holidays when the AFA means Christmas.

The AFA does not like the Wal Mart Sam's Club newsletter Source.

“In the August/September issue of their in-house magazine Source, Sam's Club has one page dedicated to Christmas. But Sam's Club doesn't refer to Christmas as being Christmas. Sam's Club promotes it as "Holidays."

On page 69 of Source, the promotional plug says: "Coming soon. Plan ahead for the holidays." On the page decorated in Christmas fashion are three products. Sam's Club wants you to buy "Holiday Cards," "Holiday Ribbon," and " Holiday Gift Bags."

What's not to like? The page number?

Getting on a plane and travelling frequently around Australia is something that you already do and something that is simply part of your job! With over one hundred stores nationally there will be lots of travel leading the national operations of this group.

You are already working in a national role, or at least a very large state or regional based position. You are looking for the next challenge in your already successful senior retail management career.

Ideally you live, or are prepared to live in Brisbane – as Queensland is the state where most of the stores are based. Alternatively, you could work out of Melbourne but this would mean more travel.

Your approach is to achieve win-win outcomes and to build strong relationships with your colleagues, direct reports and the stores and store owners. This is a franchise business operation and with that comes all the challenges of brand integrity, consistency and implementation.

You will be well supported by a committed, passionate team and a professional but friendly and open culture.

If reading this has sparked a degree of interest or intrigue then please call Tracey Horton on 03 9349 8989 to find out more or apply sending your resume to 5101.orex1@hiredesk.net

As expected , Australian Bureau of Statistics data released today shows retail spending holding up.

In July, the seasonally adjusted estimate of Australian retail sales increased by 0.6%. This follows a revised increase of 0.9% in June 2006 and a revised decrease of 0.1% in May 2006. This slightly exceed market expectations.

Department stores appear to be doing particularly well. At +7% they are the major contributor to the increase in the seasonally adjusted estimates.

The numbers are not surprising, given that employers hired an extra 50,000 in July, with unemployment falling to a 30 year low. The cash injected into the economy following the July tax cuts are were also a catalyst. The second interest rate hike was not announced until 2 August and did not impact July spending.

Westfield , probably best positioned to take the pulse of Australian retail, sees consumer resilience in the face of rising fuel and interest costs

The downside is that the lift in spending may give the RBA board a further reason for a third lift in interest rates.

Super Cheap Auto

Group sales $526, up 14%
EBIT $28.9m, up 11%
Net profit down 24% to $16.6m
New BCF business going well

Symbion Health
(Terry White & Chemmart)

Group sales to $3.4b, up 7%
Pharmacy sales $2.3b., also up 7%
Pharmacy EBIT up 5.3% to $37m
Continued pressure on gross margin from generics
Got an eye on Medibank

Country Road

Group Sales slipped 1.7% to $205m
Retail sales up 8.2% to $164m
Net profit up 9.2% to $3.22m
Moving out of wholesale back to retail

Fantastic Furniture

Sales up 6% to $235m
Net profit down 22% to $7.1m
Aggressive store roll outs to continue

Retail Food Group
(Donut King, BB's)

Sales up 7.9% to $26m
NPAT of $5.9 million – up 75%
EBIT of $10.5 million was 18% above FY05

Rebel Sport

Sales up 17% to $371m
Same store sales up 10%
Net profit up 38.2% to $224m
Opening six new stores

Chris Prunty of CCZ Equities (02 9238 8234) recommends Rebel as a BUY. They are off to a blistering start to FY07 (comp stores up 13%). Margin improvement is possible; newer stores are reaching maturity; six new stores will open and participation drive is coming from big events such as World Cup and summer cricket.

Repco

Sales up 5.5% to 909m
Gross margin fell
Net profit down 43% to $21m
Turning away from retail
Chris Prunty recommends AVOID

Westfield Group

Half year net profit $3.37b after revaluations
Operating segment earnings of $804m up 9.4%
Better than expected
Close to 100% occupancy in Australia & NZ

This Melbourne workshop will put you in control of your systems instead of the other way around. It covers the practical issues retailers face in managing their computer systems on an on-going basis. It is designed to provide practical advice for those who have been struggling with an existing system, or wish to know how to go about managing a new system. It covers IT Management skills including:  

• The key outputs retailers get from POS & back office systems
• Knowledge about hardware and software components
• What to check within your systems on an ongoing basis
• Typical IT support contracts
• How to get improvements to your system

ARA Specialist Trainer Julian Josem will run the workshop. Having worked with over 200 Australian retailers and with the experience of teaching retail management principles, Julian helps retailers manage their systems to deliver the information needed to operate their business on an on-going basis. With a combination of presentation and workshop, participants will develop the elements of their own practical IT Management practice.

A tailored IT System Management class is available to businesses looking to develop in house support for their team.

Discuss the opportunity to workshop this or other courses in your own business environment. The content of the course will include relevant examples from your retail business.

11 September 9am – 5pm

Phone Inna Muir 03 9321 5000

Catch the latest looks and styles from the hottest designers of the season at Australia's leading public fashion event, from 4-10 September 2006.

MSFW will inspire your love of fashion with an eclectic and exciting program of more than 100 stylish events day and night. By day, take your pick from gorgeous runway shows, interactive workshops, exclusive retail events, lively panel discussions, fashion luncheons, exhibitions, high teas, business seminars and not to be missed after parties. Check out the program for details of each event and start building up your itinerary!

Tesco continues to run the most popular online grocery site in the UK, capturing 66% of all online grocery orders, amounting to an average of 30,000 orders per day during the first half of 2006.

Tesco.com's closest online competitor was Asda, which captured 16% of all orders, followed by Sainsbury's with 14%.

Although Tesco revealed earlier this year that online sales had passed £1b, the majority of Poms still prefer pushing a real trolley round the grocer. Tesco accounts for £1 in every £8 spent on the UK high street, and takes around 30,000 orders per day which are collectively worth £2.5m.

And what drives this? Bananas. Looxury.

Wondering how to make the most out of your shop design? Curious about shopping environments of the future?

Curb your curiosity at the National Retail Forum, held 19-21 September 2006, Melbourne Exhibition & Convention Centre.

Mark Landini, Director of Landini Associates, will reveal tips for getting the best design solution from your retail designer, based on his experience working with innovative Australian and international retailers. Landini will talk about Harrods 102 – the 900 square metre, recently launched, convenience store on London's Brompton Road – as well as the award winning Leon – the world's first ‘slow food' fast food chain.

Also speaking at the National Retail Forum is Gilbert Rochecouste from creative consultancy Village Well. Rochecouste will change the way you see business, communities, and customers with his unique insight into evolving public spaces. The rise of liveable, pedestrian-friendly villages and town centres, less reliance on cars, and the ‘greening of retail' via sustainable practices are just some of the changes Rochecouste will discuss in his presentation – “Making an impact in a non-shopping centre environment”.

For those seeking a more interactive understanding of what retailers can expect in the future, the Retail Technology Expo and Shopfit & Design Expo will take place alongside the National Retail Forum.

Products on show at the Retail Technology Expo will include the latest retail technology solutions, the latest in supply chain and logistics, point-of-sale equipment plus financial and back office software, whilst Shopfit & Design will include the latest shop fitting products and design solutions for retail.

Featuring over 200 exhibitors, the Expos offer a complete range of retail solutions under one roof.

Visit www.retailexpo.com.au for more information.

To operate successfully in society, you must:

• Stay.
• Watch not only where you're going, but where those around you are going.
• Respect other people's space.
• Turn it off.
• Remember you're not on Entourage.
• Bud out.
• If you say you'll be there, be there.
• Hats off.
• Nobody needs to know where you are at all times.
• Your cell phone is not a get-out-of-lateness-free card.
• Send a handwritten, snail-mailed thank-you note.
• No streaming anything.

For the fully expanded Men's style guide to modern manners, see here.

I like my job. I've liked it for twenty years.

I don't like the hairdresser asking me what I did at the weekend (unless it's past lunchtime on Wednesday when the question becomes “watcha gunna do at the weekend?). I don't like the “Thank God it's Friday” view of the working week. I don't like mixing with people who hate going to work and I don't think anyone should feel that way.

I like placing candidates in a better place. Call me old fashioned if you wish, but when I meet someone who I have placed, I prefer to know that we have put them into a better situation.

Thus I don't like to read that around one third of retail workers would swap the boss if they could. And a quarter think they could do a better job.

Briefs

• Singleton hangs on to Myer account
• In Chicago, they see big department stores as white elephants
• It won't last