Scott Davidson Head of Produce Head of Produce Woolworths began - PowerPoint PPT Presentation

Scott Davidson Head of Produce Head of Produce

Woolworths began operations on 5 th h December 1924 with one store 1924 The first Woolworths Food Fair Supermarket was opened at Dee Why on 10 th April 1957 h 1957 By 1960, we had 312 stores with 15,000 1960 employees and after tax profit of £1.5million 2

• 920 Supermarkets across Australia 920 S k A li 2014 • Average weekly sales of $688M • Average trading area 2,405 m 2 per store • 113,000 team members including: – Over 3,000 Trainees – Over 1,000 Apprentices – Store Managers have an average of 15 years service 3

The range is great - it I love the layout, I I love the 1/2 really is a one stop know where price specials i i l shop everything is Woolies has Your cashiers are great specials always so friendly I want to see more My fruit and veg products that are made in doesn’t last when I get Australia Australia it home it home We spend too We spend too I don t always feel like I don’t always feel like I want to see I want to see long waiting in I am getting good more fresh fish in queues value store

Woolworths – 920 stores 17 th largest global retailer Coles – 749 stores Coles and Woolworths O li Online M More than h 3,000 Independents associated stores 7 th largest global retailer Costco Specialty stores and non ‐ supermarkets ALDI Convenience stores More than 20,000 300 stores – plans retailers to get to 600 to get to 600 10 th largest retailer global retailer 5,000 stores 6 Source: Company websites

Only 7% of y 7% customers shopped exclusively at Example specialty stores Woolworths during the month 17% % 6% 64% of customers 43% shopped at both specialists and specialists and supermarkets 12% <1% 15% Coles IGA ALDI and Coles, IGA, ALDI and Specialists and non Specialists and non ‐ other supermarkets supermarkets Percentage of households who shopped across different retailers Percentage of households who shopped across different retailers Source: Nielsen 7

The average customer makes 2.5 grocery More than 75% of baskets are small “top up” shops transactions per week 1 Distribution of basket sizes, percent 2 “T “Top up” shops of <$50 ” h f $50 30 20 15 13 13 13 13 10 <$10 $10 ‐ $20 $20 ‐ $30 $30 ‐ 50 $50 ‐ 100 $100+ 8 Source: Nielsen, Woolworths

Good Good Better Better Best Best Value offer, limited range, Mainstream savvy Supreme food range, budget conscious shopper shopper, mid tier range superb quality and who require the lowest that offers big brand mouth watering food price “fit for purpose” quality and always experiences satisfying produce. cheaper. the want to indulge.

Barista Coffee Sushi Seasonal events Eating experience Gold

Healthy Bulk Foods – Lunchbox Goodness to Go Goodness to Go Good to Go

Number of fresh food suppliers large and small 3,490 Share of fresh meat and poultry sourced from Australian 100% suppliers Percentage of Bakery sourced from Australian suppliers 92% Percentage of Seafood sourced from Australian suppliers P f S f d d f A li li 59% 59% Percentage of fresh fruit and vegetables sourced from 96% Australian suppliers Australian suppliers Percentage of cattle sold in Australia that Woolworths purchases 7% Percentage of lamb sold in Australia that Woolworths 15% purchases Percentage of fresh fruit and vegetables sold in Australia Percentage of fresh fruit and vegetables sold in Australia 14% 14% that Woolworths purchases

Buy Australian First Source locally within states and regions Engage directly with Australian Farmers and Manufacturers Manufacturers

Per year we buy: 600,000 2,000,000 550,000 Brismeat 11 Tamworth 12 Lobethal Bunbury Meat processing Cootamundra Murray B id Bridge facilities – 2 we Beef Growing Region Stawell Livestock buyers purchase Tatura operate ourselves Beef Abattoir meat around Australia Devonport Lamb Growing Region Longford Lamb Abattoir Pork Abattoir We of sausages produce per week 450 ‐ 500 tonnes tonnes

of our fresh fruit & veg 96 % 96 % Darwin is Australian grown is Australian grown Katherine Mareeba Kununurra Innisfail Atherton Tully M Mundubbera d bb Bowen 1 billion kg fruit & veg Ti Tree We buy every year Bundaberg Carnarvon Chinchilla Sunshine Coast Lockyer Valley y y Gatton St George Warwick Stanthorpe Coffs Harbour Bourke of our fresh fruit & veg Virgini Menindee Perth Metro 80% direct off Australian farms 80% a We buy We buy direct off Australian farms Hillston Dorrigo Adelaide Hills Adelaide Hills Renmark Orange Metro Sydney Griffith Riverland Sunraysia Pemberton, Donnybrook Young Swan Hill and Manjimup Batlow Cobram & Shepparton Bendigo Yarra Valley Fruit Growing Regions Werribee ! Gembrook Thorpdale Vegetables Growing V t bl G i Regions North & South Huon Valley and Tasmania Launceston Hard Produce Growing Regions We carry stock in our 1day DCs for an average of RDC & DCs l less than th

Woolworths’ believes in three Woolworths believes in three key fundamentals: 1. Improve the quality and 1. Improve the quality and freshness of the food we sell sell 2. A fresher and faster supply chain h i 3. Supporting Australian farmers – buying Australian first…locally

Woolworths’ ambition is to source from like minded suppliers based on some key criteria: 1. Quality and freshness 2 Farming and post harvest practices 2. Farming and post harvest practices 3. Innovation 4. Service 5. Commercial relationship 5. Commercial relationship 21

1 Q 1. Quality and freshness: li d f h This criteria is a direct response to meeting our customer needs, ensuring that they get the freshest possible product available and that it lasts when they take it home. In this area assessments are based on: • Lead ‐ time from harvest to DC L d ti f h t t DC • Rejection rates into our DCs • • Varietal attributes (eg Flavour and colour) Varietal attributes (eg. Flavour and colour) • Traceability to grower 22

2. Farming and post harvest practices: We don’t make short term decisions so we want to make sure we work with the people who are here for the long term, look after k ith th l h h f th l t l k ft their product, their farm and the communities they operate in In selecting our major partners we will assess: In selecting our major partners we will assess: • Agricultural practices (eg. Pest, disease and soil management) • S Sustainability practices t i bilit ti • Packing facilities (capability, age, size, location) • Post harvest treatment (eg Hydro ‐ cooling) Post harvest treatment (eg. Hydro cooling) 23

3. Innovation: We want to work with people who don’t accept the status quo and want to ensure we have the best and most unique offer for our customers t In selecting supply partners for the future we will assess : • Present and future product development • Access to and use of market and industry information both y domestically and internationally • Investment in R&D in their operations • Varietal trials and improvements l l d • Willingness to partner with Woolworths to develop exclusive products products 24