quick overview:
- Improved values resulting in a more competitive offer;
- focus on consistent availability;
- ongoing innovation delivering the Woolworths food difference; and
- introduction of more brands to complete the ‘main shop’ concept.
2009 focus
positioning
Use the clear customer segmentation to drive Woolworths positioning as an iconic food retailer providing the convenience and competitiveness of a supermarket but the soul of a delicatessen offering fresh, healthy and tasty food.
availability
Drive profitable, consistent availability, with further refinements to the planning and stock management systems.
value, quality and convenience
Offer customers a range of everyday household essentials at competitive prices at a store close to home.
innovation
Deliver the difference through ongoing innovation, driving category growth and still offering customers exceptional value.
retail: food
Innovation, uncompromising quality and excellent value continue to be the key drivers of the Woolworths food difference. Now with significant share of the market, Woolworths is no longer a niche food business and we are shifting our strategy to develop a relevant and competitive supermarket business whilst still maintaining the successful speciality food formula that sets Woolworths food apart – a food business with the mind of a supermarket and the soul of a delicatessen.
Our produce business continued to grow market share and protein showed positive growth through the year. Customers continued to respond extremely favourably to the introduction of branded grocery products. The introduction of more than 100 new grocery lines during the year offers customers an opportunity to do their complete main shop at Woolworths.
Reacting to customers’ increasing concern with value as the year progressed, Woolworths sharpened prices considerably in core categories and our basic grocery lines are now extremely competitively priced, offering customers the best possible quality at everyday great value.
The product development team has also undertaken a pragmatic review of many of our customers’ favourite products, for example chocolate muffins and prepared lasagnes. Where possible more expensive, often imported ingredients, have been substituted with similar quality, less expensive ingredients. These products are now offered to customers at a keener price with the same eating experience.
Having food product available on shelves when and where customers need it is a major focus. The unique Woolworths formula, providing a broad range of fresh product with a short shelf life across a growing number of outlets, each with a unique catalogue requirement, makes consistent profitable availability a challenge. Despite the final implementation of the Retek stock management system in food, we have still not seen the benefit in improved availability that we expected and we are in the process of driving further initiatives to improve availability.
Delivering newness across the food business retains our loyal food customers, meeting their needs for a differentiated food offer. Innovation continues in all areas with 543 new lines launched during the year, including more than 150 new organic grocery lines. 413 lines were upgraded, including a complete relaunch of Woolworths yoghurt range and an upgrade to the range of sandwiches, introducing improved recipes and fully recyclable sandwich packaging.
The demand for organic lines continues to grow, supporting Woolworths focus on the Good business journey . Alongside totally organic farming, a clear commitment to bio-farming is starting to show results and Woolworths farmers are using less pesticides and more natural farming methods, treading more softly on the land.
Woolworths focus on healthy and nutritious food continues to be strong, with natural flavours and colourants, a reduction in salt and sugar in recipes, milk from cows that are hormone-free and the removal of hydrogenated fats and oils from prepared food are just some of the health choices we have made.
Woolworths continues to prioritise convenience in the food business with 17 food stand-alone stores, 14 Woolworths Food Stops, and 10 food courts in larger format stores opening in the last year. Bigger stores with wider aisles and better product choice are being introduced in order to drive convenience and enable customers to do more of their main shop at Woolworths.