Published On: February 13th, 2023
Woolworths is an Australian retail giant. Headquartered in Bella Vista, Sydney, it is the largest company in Australia in terms of revenue and the second-largest in New Zealand. It owns Woolworths Supermarkets, Everyday Rewards (customer loyalty program), and Big W (Discount Department Stores) in Australia.
Woolworths was founded in 1924 in Sydney. Woolworths, Sydney, started as a variety retailer and was called Woolworths Limited. Since 1960, Woolworths has traded in every Australian state and territory. The company went through significant changes in 2012 and, as part of its massive consolidation drive, chose to focus only on the retail supermarket sector. This was brought about by divesting its shopping centres, electronics retailing, home improvement, fuel retailing, liquor retailing, and hospitality businesses.
As of August 2022, there are 1086 Woolworths Stores in Australia, out of which 4 Woolworths, Sydney. Among them, New South Wales bagged the top position with 329 locations estimated to be about 30% of all Woolworths Stores in Australia.
Compared with 1086 Woolworths stores in Australia, Coles, another retail giant, is reported in Australia as of January 31, 2023, with New South Wales being home to 250 Coles Stores. The company’s 52-week range as per Australian Market Index falls between 31.67 – 39.63.
What makes Woolworths in Australia synonymous with trust
Woolworths has been at the helm of Australian supermarkets for 98 years. It has stood the test of time by building customer expectations and always staying caught up to deliver. For instance, how the company handled the Covid crisis shows its commitment to putting the customer first.
It’s clear to business owners that the pandemic was not a good time for business. Especially if it’s a supermarket. Yet, with a few thoughtful and timely adjustments, Woolworths responded well to customer demands and expectations. For instance, the retail giant introduced shopping hours reserved especially for seniors and refined its services. It was a time to build around customer needs more than ever, and as per CEO Brad Banducci, “Customer needs are always ahead of everything. We do much scoring from customers; we get daily results on how customers felt in every store in the group.”
This quick response time and crisis management were met with much approval from its customers. This has also led to greater expectations as the world stands at the cusp of change and how it affects everyday life. For Mr Banducci, the way ahead will be paved by technology and how quickly retailers can improvise to provide their customers with the most convenient shopping experience. The company’s willingness and promptness in adapting have helped it become synonymous with its customers. This is why their main focus is now on providing online services, apps, delivery services, and smart shopping lists.
Even as recent as October 2022, when floods in New South Wales and Queensland “led prices soaring” on such household items as lettuce, Mersey valley cheese, western star butter, and strawberries, Woolworths in Australia decided to offer savings in 400 grocery go-tos. The customer appreciates such advances made in the direction of their benefit. This strengthens their loyalty to a brand, which guarantees brand success.
Woolworths makes $1.5 billion profit despite Covid.
Covid affected all aspects of all businesses. Regarding retail, departments like product management and supply chain faced the worst impact. As stores like Coles struggled with product shortages and staff taking sick leaves, Woolworths stores in Australia, a whopping 1086 of them managed to turn the tables on Covid and generate a profit of $1.5 billion. For Mr Banducci, this profit resulted from “the level of investment which we made last year in the supply chain resilience.”
Additionally, Woolworths, Sydney and elsewhere in Australia recognised total food sales of around 45 billion AUD in 2022, thus continuing an upward trend since 2016.
Woolworths set to be crowned as pet retailing king.
People are taking better care of their animals than ever. This has led to an increase in demand for various pet products. A name like Petspiration has gained immense popularity owing to this increase. Petspiration is the owner and operator of the leading retail brand PETstock which has a network of 276 stores and 2.4 million members. Petspiration continues to dominate the market, acquiring major pet retailers My Pet Warehouse and Best Friends Pet in early 2022.
After purchasing a 55% stake in Petspiration Group for $586 million in late 2022, Woolworths stores in Australia are all set to become the undisputed king in the Australian pet market.
Partnership with Endeavour Group
As per the ASX announcement made on 14th December 2022, Woolworths Group has agreed to sell 5.5% of the issued capital of Endeavour Group via a block trade for $6.46 per share. For CEO Brad Banducci, this move takes their partnership with the Endeavour Group to the next level, ensuring that “the proceeds will be used for strategic investments and general corporate purposes.”
MyDeal and Woolworths
In September 2022, 80% of MyDeal.com.au was acquired by Woolworths Group, a move which gives MyDeal an equity value of $271.8 million. By adding MyDeal to its roster, the Woolworths Group displayed its dedication to giving its customers a holistic shopping experience. For CEO Baducci, the acquisition “expands our marketplace capabilities, especially in general merchandise.” Apart from that, this move increased the share value of MyDeal from 0.19 per cent to $1.05 per share, while shares in Woolworths Group went up from 0.16 percent to $37 per share.
As of 7th February 2023, Woolworths Holdings’ net worth is $4.46B. Its market cap stands at $43.78B. It has issued1,216,476,503 shares, and as per ASX, its last share price was listed at $35.99.