Beautiful product of superior quality and exceptional value in a modern, exciting shopping experience. The past year has seen the Clothing and Home division continue to make progress against the strategic positioning - to provide beautiful product of exceptional quality and value in a modern exciting shopping experience.  The division’s sales grew by 11,6% over the 52 week year (53 weeks in the previous year), with clothing, footwear and textiles (CFT) market share growing by 0,4 % for the year on a comparable 52 weeks basis.  As a whole, Clothing and Home grew ahead of the market until the fourth quarter, when, together with the late arrival of winter, performance fell slightly below market.

Mark Canning Director: Clothing and Home, Marketing

The best performing areas were womenswear, menswear, footwear and accessories, where the focus on targeted product offerings, supported by constant newness, product appeal and quality, resulted in market share gains.  By contrast, the lack of newness and product appeal, together with greater price competitiveness in the market place, resulted in the homeware and childrenswear groups performing below the market.

A significant feature of the past 12 months has been the impact of the exchange rate on prices.  Due to purchasing lead times, the weakening of the Rand in December 2001 significantly impacted prices for summer 2002 and winter 2003, particularly imported products such as footwear and imported fabrics, and raw materials.  The strengthening of the Rand over the last few months will have a positive effect on summer 2003 and winter 2004 prices in clothing and homeware.

The variability of the exchange rate brings with it practical challenges in maintaining appropriate pricing structures.  We believe that it is a strategic imperative to work with our local supply base to determine the impact of lower priced imports on local production and our future competitiveness.  Such a strategy must meet the needs of all stakeholders including a competitive customer positioning.

key looks in womenswear
Womenswear had an exceptional year with women’s outerwear gaining 0.5% market share over the 12 month period. This was achieved by refreshing the offer more frequently, providing exciting twice monthly inputs of classic and modern wardrobe collections – key looks of the season – underpinned by core items. By appealing to Woolworths classic customer as well as to a younger and more modern customer, womenswear has been able to segment Woolworths offer across a broader customer base. The introduction of the W Collection women’s range established an aspirational range of beautifully styled products with luxurious fabrics. The values in this range set it apart from any other equivalent offer in the market. The introduction of our Perfect range of formal yet modern items has further complimented our spirational positioning.The trend towards active leisure lifestyles was met by the introduction of the Activ range of activewear, which is both fashionable and casual, offering a new modern trend in athleisure wear.

Women’s lingerie retained market leadership by achieving a market share of 34,0 % for the 12 months. The cornerstone of Woolworths success in lingerie is outstanding quality and value with continued newness and technical innovation, promoting fashionable and desirable lingerie. The JT One range of younger, more modern underwear continued to grow strongly and has become an exciting, desirable brand among younger women.

stylish collections in menswear
The introduction of W Collection man, a formal and smart casual range of menswear with fresh, stylish collections, continues to attract a new modern customer. The outstanding values and simple sophistication of W Collection have set a new standard for the balance of our menswear ranges, aiming to offer the complete wardrobe solution for men – key seasonal items and great basics, on-trend for style, colour and fabrication across formal, casual, classic and modern lifestyles. Easycare remains a differentiator with the introduction of machine-washable suits in menswear. A market share gain of 0,4 % for the past 12 months demonstrates the success of these ranges. A customer segmentation review in menswear has been completed and future ranges will more clearly meet the needs of specific customer markets.

positioning jeanswear
Woolworths jeanswear offering has traditionally been overshadowed by branded products. "RE Jeans", launched late in winter 2003, sets out to establish a modern, broad-appeal jeanswear brand across women and menswear. Initial sales have been very pleasing and reflect the huge potential of this initiative, which will continue to be aggressively pursued during the new year.

challenges in childrenswear
The complexity of the childrenswear market continued to provide challenges and it is disappointing to report a decline in market share for this category. Kids are more discerning about their wardrobes and have a greater say over their clothing purchases at a younger age. Woolworths strategies now need to be adapted to appeal to multiple lifestages as well as traditional, price conscious customers.

Woolworths remains steadfast in offering quality childrenswear products at value for money prices despite the market place being driven by cheaper ‘disposable fashion’. This challenge will be met by ensuring that the ranges are more clearly segmented, appealing to both kids and moms. The in-store experience also needs to be further segmented to provide greater appeal to the differing age groups. Simplified styling and competitive pricing of core entry ranges will underpin an extension into key fashion items, inspired by today’s trends, at great quality and value across the age groups.

Woolworths renowned attention to product safety will further be advanced in clothing by the compulsory introduction of metal detectors at all childrenswear suppliers. Safety in schoolwear has been improved by the introduction of reflective elements on school clothing and footwear to help overcome the high incidence of pedestrian accidents.

essential accessories
In footwear, accessories and beauty, the focus was on newness and innovation.  Footwear market share growth of 0,6 % reflects improved styling and the introduction of unique technologies to enhance comfort such as the ‘soft and flexy’ sole and the ‘air cushioning’ inner sole.

Accessories remain a dominant trend in refreshing a wardrobe.  Constant newness and excellent values have been key to the growth in accessories and it is expected that this trend will continue.

In beauty, ongoing development of new ranges and the updating of existing favourites have ensured that Woolworths remains the leader in private label toiletries, cosmetics and fragrances.  The new introduction of ‘Beauty Shops’ in 18 stores gave a refreshing appeal to the beauty business.  A roll out to more stores and the introduction of new ranges with an emphasis on natural, health and well-being, will further entrench this success.

re-positioning homeware
In homeware, new competitors have had an impact on Woolworths performance, primarily in kitchenware.  While Woolworths has enjoyed a market leadership position in homeware in the past few years, the growth of this market has inevitably led to new competition.  Our traditional offer has proved to be inadequate as a number of new innovative retail formats enter the market.

Homeware has re-defined its market positioning and the ranges have been segmented to ensure that Woolworths offers a fresh and unique point of difference in the marketplace without compromising the underlying proposition of aspirational quality and style at affordable prices.