INTRODUCTION

Industry : RetailFounded : 1924Headquarters : Bella Vista, AustraliaArea served : Australia ,New Zealand, HongKong and IndiaKey people : James Strong, Chairman

Michael Luscombe, CEO Grant O'Brien, CEO Designate

Woolworths Limited is a major Australian company with extensive retail interest throughout Australia and New Zealand.

largest retail company in Australia and New Zealand by market capitalization and sales.

largest food retailer in Australia and the second largest in New Zealand.

largest takeaway liquor retailer in Australia.largest hotel and poker machine operator in

Australia19th largest retailer in the world.

HISTORY

The first store was opened in the basement of Imperial Arcade on 5 Dec, 1924, and opened its second store on 6 Aug, 1927.

It opened its first overseas store in Wellington, New Zealand on 4 october, 1929.

In 1936, company acquired eight stores of Edments Ltd in Victoria.

Woolworths opened its first fresh food store “DEE WHY” in 1957 in Sydney. The store offered fresh fruits , vegetables and packaged fresh meat.

In 1960, Woolworths entered the apparel market by acquiring 70 rocksman and in 1964 opened its first regional shopping centre at New South Wales.

Woolworths opened its first discount store under the name of BIG W in 1978.

In April 1989, the company sold all its shares to Industrial Equity Limited at A$ 850 million and became fully owned subsidy of IEL.

IN 1996 , it entered the petroleum business by opening “Petrol Plus “ outlets in the parking of supermarts.

Category division:

Super marketsPetrol outletsRetail liquor outletsHotelsGeneral merchandising and consumer

electronics.

Supermarkets

Woolworths – The company's premier supermarket chain, which operates in every Australian state and territory. The supermarkets are often colloquially known as "Woolies" and have used the slogan 'The Fresh Food People' since 1987.

Woolworths online (Homeshop) – An online Woolworths supermarket store. Homeshop allows users to purchase their groceries online and have them delivered to their front door. The groceries are packed in special warehouses located around the country specific for homeshop.

Green stores– In 1985 Woolworths Limited opened the first “Green store” , the store aimed to reduce usage of energy , water and emissions of green house gas .

Food For Less  – Discount supermarket chain located in Queensland and New South Wales.

Rumored to be rebranded to Woolworths over time as stores are refurbished

Retail liquor outlets

BWS – (Beer Wine Spirits) Liquor stores located away from the company's supermarkets.

Dan Murphy's– woolsworth entered the liquor market with the acquisition on Dan Murphy. Dan Murphy's is one of the company's best growth performers, with plans for up to 100 stores (from the current 55) to exist within the next 2–3 years.

First estate – these are the first wine shops

Woolworths Liquor – A department of Woolworths supermarket stores. They are not located in Queensland and Tasmania, as State law there prohibits liquor sales at supermarkets. These stores were formerly known as "Mac's Liquor"

Hotels

The hotel business of Woolworths comprises premised liquor sales, accommodation , food , gaming and venue hire.ALH Group– Hotel and Poker Machine operator, which is 75% owned by Woolworths Limited.

Petrol The first petrol plus site was opened in 1996 in Dubbo. In

2OO3, the company announced a joint venture with Caltex Australia Limited , where petrol is supplied by Caltex and groceries by Woolworths .Petrol stations located both free standing and adjacent to Woolworths and Safeway supermarkets

General merchandising & consumer electronics

Big W – Discount Department Store chain, which sell a wide range of general merchandise. BIG W represents about 8% of group sales and reputedly has aggressive expansion plans compared with competitors Kmart and Target

Dick Smith – In 1981 woolworths acquired 60 percent share in dick smith and remaining 40 percent in 1983 which Sell a wide range of consumer goods such as computer products & consumer entertainment products. (Formerly 'Dick Smith Electronics')

Tandy – Similar to Dick Smith Electronics stores, but smaller and lacking the hobbyist components (Tandy brand is being phased out, becoming smaller Dick Smith stores)

Supply Chain

Management

PROCUREMENTWoolworths believed that increased efficiency in procurement will benefit consumers. It adopted a “ buy Australian” commitment. Fresh fruits, vegetables and meat products were purchased from the best suppliers allover the Australia.

DISTRIBUTIONThe distribution channel to a centralized supply chain structure in 2000 to improve economies of scale, avoid duplication, implement uniform technology and facilitate uniform decision making

EDLP STRATEGY

In 1990, Woolworths adopted Every Day Low Price strategy for key lines in supermarkets. This strategy was adopted basically to revive Big W discount stores, to see the strong acceptance of this offer by the customers the company introduced this in all Woolworths supermarkets.

Woolworths ensured that the prices were the same at all the stores within each state.

Challenges

Balancing between maximizing efficiencies across whole of the business while still allowing each division to be independent in terms of performance.

The entry of other international players like Wal-Mart, Tesco etc. could lead to intensified

competition as consumers had wide variety of choices available about where to shop.

Remote locations, huge distances, climate fluctuations and topographical challenges were some of the factors that contributed to problems encountered while sourcing goods.

Woolworths also faced a major challenge regarding reducing the environmental impact caused due to its retail operations like waste

productions, high energy and fuel consumption and green house gas emissions.

By:Ketan Wadhwa