The defensive strategy employed by supermarket giant Woolworths has paid off over the last twelve months as the 2000 annual report has shown that the company has turned around 1998-9's disappointing profit result and allayed fears that its investment in new distribution centres was foolhardy.This time last year, newly appointed CEO Roger Corbett had only just taken hold of the corporate baton from Reg Clairs, and his first duty was to announce poor financial results and promise to do better. A "defensive" business in providing grocery staples, Woolworths attracts investors due to its inherent survival status and its ability to make great earnings on shares or dividends.Business development was still forthcoming however with the establishment of Woolworths.com for the Internet-based consumer, and the Ezy-Bank account venture, which attracted 150,000 customers in its first year. Project Refresh was also instituted to cut cost across the board, in IT, HR, the supply chain and organisational redesign. In the report, Corbett revealed that: "We can now confirm that these estimated annual savings by fiscal 2003 will reach A$134m." He added that over the past year, costs fell by A$172m, meaning that "we are able to serve our twin goals of increasing shareholder returns and giving greater customer satisfaction, which in turn drives volume to the further benefit of our shareholders." Corbett also revealed plans to open 20 to 30 new supermarkets every year for the foreseeable future, and he displayed an extremely optimistic outlook. "[We] are confident that, given ongoing satisfactory economic conditions, Woolworths will continue to deliver sales growth in the high single digit and profit in the lower double-digit ranges for the foreseeable future, i.e. three to five years… Growth remains a key factor in Woolworths' strategies for the future."
AUSTRALIA: Annual report shows Woolworths' defensive strategy is good for business
Get full access to all content, just $1 for 30 days

just-food gives you the widest food market coverage.
But only paid just-food members have full, unlimited access to all our exclusive content - including 21 years of archives.
Try just-food for 30 days and get the research report; ‘Is sugar the next tobacco’ for free!
Dean Best, editor of just-food
Do you get our newsletters? If yes, log in to your account to access your FREE READS. Don't know your password? That's cool - you can reset it here.
Most Popular
Insights
- Why cutting sugar in chocolate is so challenging
- Hatching new ideas – incubators, accelerators
- The early effects of UK-EU trade deal
- Big Food's VC-style funds: the investments so far
- How food groups are singling out China's singles
News
- UK food trade body calls for EU deal changes
- Action taken on Scottish seafood exports to EU
- Hain Celestial sells UK fruit business
- NPD – Danone, Nestle/General Mills, Mars, Ferrero
- Barilla takes stake in UK business
Market research
- China In-depth PESTLE Insights
- Sustainability - The Most Important Theme for 2020 - Thematic research
- Purity Wholesale Grocers Inc - Strategic SWOT Analysis Review
- Cooked Meats - Counter (Meat) Market in the United States of America - Outlook to 2024: Market Size, Growth and Forecast Analytics (updated with COVID-19 Impact)
- Chilled Raw Packaged Meat - Whole Cuts (Meat) Market in Brazil - Outlook to 2024: Market Size, Growth and Forecast Analytics (updated with COVID-19 Impact)
Oops! This article is copy protected.
Why can’t I copy the text on this page?
The ability to copy articles is specially reserved for people who are part of a group membership.
How do I become a group member?
To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..
