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Tag: Woolworths

  • Woolworths bans the bags

    Woolworths bans the bags

    Woolworths will no longer offer single-use lightweight plastic shopping bags across its entire store network in Australia.

    Over the next 12 months, the conglomerate said the decision to reduce its plastic bag usage was “the right thing to do” as one of the country’s largest retailers.

    “We currently give out more than 3.2 billion lightweight plastic bags a year and hence can play a significant role in reducing overall plastic bag usage,” Woolies CEO, Brad Banducci.

    “Today’s commitment shows we are committed to taking our environmental and community responsibilities seriously.

    “Whilst we know this is a major decision, we will work very closely with all of our store teams to ensure the transition for our customers is as simple as possible.

    The reduction will cover all Woolworths Group stores nationwide including its supermarkets and metro stores, Big W, BWS and e-commerce operations. Dan Murphy’s and Cellarmasters are already single-use plastic bag free.

    Instead shoppers will be offered reusable bags ranging from 15 cents to $2, although Big W may provide reusable bags at no extra cost.

    Banducci said the move signals the start of further commitments by Woolies, in minimising its impact on the environment.

    “Our customers can also expect further commitments in reducing plastic use in all parts of our supply chain, especially in fruit and vegetables,” he said.

    Jon Dee, the founder of the national anti-plastic bag campaign Do Something, said that this is the first big step by a major Australian retailer.

    “This is the first move by a major retailer to get rid of plastic bags and we now need to see Coles make the same pledge,” Dee told AAP.

    “Aldi took the lead when they set up here in 2001 because from day one they didn’t give away free plastic bags.”

    Woolworths’ lunchtime announcement was quickly followed by a similar announcement from fierce rival Coles on Friday afternoon.

    Coles said it will bring its stores in Queensland, NSW, Victoria and WA into line with Tasmania, SA, the Northern Territory and the ACT, where Coles complies with local bans.

    Coles chief customer officer Simon McDowell said this follows several months of consultation with non-government organisations and environmental groups.

    Dee said lightweight plastic bags often end up polluting waterways and the ocean, killing and maiming marine animals.

    Removing free bags will give shoppers an incentive to use their reusable bags, he added.

    Greenpeace campaigner Samantha Wockner said Woolworths’ move will have a significant positive impact on the environment, and urged governments to act on the issue.

    “It’s disappointing that leadership on this issue has come from a large supermarket chain rather than from our politicians,” she said.

    Several major retailers have removed or put a charge on single-use plastic bags to encourage shoppers to bring reusable bags. Aldi has charged customers 15 cents per bag since arriving in Australia in 2001. Wesfarmers-owned Bunnings introduced a 10 cent levy on disposable plastic bags in 2003. Furniture chain, Ikea stopped using free disposable plastic bags in 2013.

  • Woolworths plans to sell online in China

    Woolworths plans to sell online in China

    Supermarket titan Woolworths considers taking advantage of China’s voracious interest for Australian food and grocery items.  Australia’s biggest general store chain has connected with China-based eCargo Holdings to construct and operate a Woolworths storefront on Alibaba’s Tmall business-to-customer online marketplace.

    eCargo will likewise facilitate Woolworths’ stock, packing and dissemination requirements, counsel on brand strategy and embrace an extensive variety of online and social advertising exercises for the retailer. Woolworths has a vicinity in the Chinese market after obtaining alcoholic beverages merchant Summergate a year ago for $US25 million. Rising interest among China’s well-to-do white collar class in food and dairy items delivered from abroad has opened up a substantial business sector for Australian food and dairy items.

    eCargo Chairman John Lau said in an announcement that they trust the food and grocery market will encounter enormous development in the coming years in between Australia and China, as cross-outskirt exchange limitations ease and the China Australia FTA produces results.

    Woolworths online invasion into China takes after a comparative move by smaller local opponent Metcash, which set up shop on Tmall not long ago to sell items like Weet-Bix, Tim Tams, long-life milk and newborn child formula.

    As of late, a few well known worldwide brands including Amazon, Macy’s and Germany’s Metro have set up shop in the online market place operated by Alibaba and rival JD.com, with an end goal to take into account China’s growing interest for imported customer items. The Chinese e business sector is conjecture to more than twofold throughout the following three years to $US1.5 trillion, as indicated by New York based research firm eMarketer.

    Woolworths has struggled in the domestic market over the previous year in the wake of taking a profit hit from its price war with adversary grocery store titan Coles and German discounter Aldi.

  • Woolworths ads not so cheap, but Coles ads down, down

    Woolworths ads not so cheap, but Coles ads down, down

    The supermarket wars have pushed two of Australia’s big advertisers in different directions, with No. 1 supermarket Woolworths revving up its spending while Coles winds its down.

    Woolworths is estimated to have spent $18.8 million on traditional advertising from January to March this year. This was an 8 per cent increase on its $17.4 million supermarket spending in the first three months of last year.

    By contrast, Coles is estimated to have slashed its ad spend to $13.7 million from January to March. This is down 17 per cent from $16.5 million in the same period last year.

    The Nielsen advertising expenditure estimates cover the bulk of the supermarkets’ ad spend, across television, radio, print, outdoor, cinema and some online. It doesn’t cover advertising booked through exchanges, specialist press and social media.

    Credit Suisse analyst Grant Saligari said Woolworths had “increased advertising frequency [on TV] and has been running more promotions in the third quarter [from January 5] than in prior periods.”

    Woolworths and Coles declined to comment.

    Coles’s long-running “Down, Down” campaign, featuring rockers Status Quo, has been widely described as successful but annoying. Woolworths responded last year with a less lauded campaign featuring a “Cheap, Cheap” slogan, animated birds and singer Samantha Jade. Its ‘BrandZAC’ campaign for Anzac Day last month was widely panned.

    Sources have suggested Coles’s lower ad figures this year could be because it was working out its response to Woolworths’ campaign, or because its existing campaign was successful.

    Ben Willee of Spinach Advertising said: “Just because you spend more doesn’t necessarily mean your campaign is more effective. The hardest part is getting your creative right.”

    Woolworths – owner of major retailers including alcohol business Dan Murphy’s and discount department store Big W – and Wesfarmers – owner of Coles and hardware chain Bunnings – are two of Australia’s biggest advertisers.

    Responding to disappointing grocery sales and an improving Coles, Woolworths in February said it would spend at least $500 million on cutting its prices and improving its stores.

    Coles this week reported a marginal increase in market share in the third quarter and tipped independent and specialty retailers would continue to lose market share at the hands of foreign supermarkets Aldi and Costco. Coles has about 25 per cent of the Australian food market, Wesfarmers said.

    Excluding new store openings, Coles food and liquor sales grew by 3.8 per cent in the three months to March 31. Including new stores, Coles food and liquor grew by 5.4 per cent, to $7.1 billion.

    Woolworths is set to hold a strategy briefing day and store visits next week, and is tipped to post third-quarter sales growth of about 0.9 per cent.

  • Woolworths sells The Warehouse stake, abandons NZ expansion plans

    Woolworths sells The Warehouse stake, abandons NZ expansion plans

    Woolworths has abandoned plans to enter the discount department store sector in New Zealand and has sold its 8.8 percent stake in New Zealand retailer The Warehouse Group for NZD86.9 million (USD65.5m), less than half the price it paid eight years ago.

    Woolworths said on Tuesday it had sold 30.5 million shares in The Warehouse Group for NZD2.85 a share – a slight premium to the market price of NZD2.72 – to one of New Zealand’s largest retailers, the privately held James Pascoe Group.

    Woolworths said The Warehouse investment was no longer required as part of its New Zealand strategy and confirmed that it had given up on its original plan to use the stake as a platform to enter the discount department store sector and replicate its BIG W business.

     

  • Woolworths bolsters David Jones team

    Woolworths bolsters David Jones team

    South African retailer Woolworths has bolstered the board of its Australian subsidiary, Vela Investments, the vehicle for its AUD2.1 billion (USD1.63b) takeover of David Jones last year.

    Woolworths has appointed four new directors to the Vela Investments board – corporate adviser Patrick Allaway, David Jones acting chief financial officer John McRae, Woolworths’ finance director Reeza Isaacs, and Woolworths’ chief operating officer Daniel Ngumeni.

    They join Woolworths chief executive Ian Moir, David Jones chief executive Iain Nairn and David Jones chief operating officer David Thomas on the Vela board.

  • Aldi Australia vows to maintain pressure on rivals

    Aldi Australia vows to maintain pressure on rivals

    Discount retailer Aldi Australia has vowed to maintain pricing pressure on rivals in the AUD85 billion (USD69.58b) grocery market, after increasing sales by 13 percent in 2014, outpacing food and liquor sales growth at Coles and Woolworths almost three-fold.

    Aldi Australia’s sales reached AUD6 billion in the 12 months ending December 2014, compared with AUD5.3 billion in 2013. The growth was underpinned by strong same-store sales growth and 25 new stores.

    In comparison, Woolworths’ Australian food and liquor sales grew 4.7 percent to AUD41.7 billion in fiscal 2014 and Coles’ food and liquor sales rose 4.6 percent to AUD29.2 billion.