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

Scott Davidson Head of Produce Head of Produce

h

1924

Woolworths began operations on 5th December 1924 with one store The first Woolworths Food Fair Supermarket

h

1957

was opened at Dee Why on 10th April 1957 By 1960, we had 312 stores with 15,000 employees and after tax profit of £1.5million

1960

2

920 S k A li

• 920 Supermarkets across Australia
• Average weekly sales of $688M

2014

• Average trading area 2,405 m2 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 really is a one stop I love the 1/2 i i l I love the layout, I know where shop price specials everything is Woolies has great specials Your cashiers are always so friendly I want to see more products that are made in Australia My fruit and veg doesn’t last when I get it home I don’t always feel like Australia it home I want to see We spend too I don t always feel like I am getting good value I want to see more fresh fish in store We spend too long waiting in queues

Woolworths – 920 stores

Coles and Woolworths

Coles – 749 stores 17th largest global retailer M h

O li Independents

More than 3,000 associated stores

Online

7th largest global retailer

Costco Specialty stores and non‐supermarkets ALDI

300 stores – plans to get to 600 More than 20,000 retailers

Convenience stores

to get to 600 10th largest retailer global retailer 5,000 stores

6

Source: Company websites

Only 7% of Example specialty stores

7%

% y customers shopped exclusively at Woolworths during the month

6%

17%

43%

64% of customers shopped at both specialists and 12% <1% specialists and supermarkets Coles IGA ALDI and Specialists and non

15%

Percentage of households who shopped across different retailers

Coles, IGA, ALDI and

• ther supermarkets

Specialists and non‐ supermarkets 7

Source: Nielsen Percentage of households who shopped across different retailers

The average customer makes 2.5 grocery transactions per week1 More than 75% of baskets are small “top up” shops Distribution of basket sizes, percent2 “T ” h f $50 30 “Top up” shops of <$50 13 15 13 20 10 13 13 <$10 $10‐$20 $20‐$30 $100+ $50‐100 $30‐50

8

Source: Nielsen, Woolworths

Good Good Better Better Best Best

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

Barista Coffee Sushi Seasonal events Gold Eating experience

Bulk Foods – Goodness to Go Healthy Lunchbox 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% P f S f d d f A li li 59% Percentage of Seafood sourced from Australian suppliers 59% Percentage of fresh fruit and vegetables sourced from Australian suppliers 96% Australian suppliers Percentage of cattle sold in Australia that Woolworths purchases 7% Percentage of lamb sold in Australia that Woolworths purchases 15% Percentage of fresh fruit and vegetables sold in Australia 14% Percentage of fresh fruit and vegetables sold in Australia that Woolworths purchases 14%

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

Per year we buy: 550,000 2,000,000 600,000

Brismeat Murray B id Tamworth Cootamundra Lobethal Bunbury

12

Meat processing

11

Bridge Longford Tatura Stawell Devonport

Beef Abattoir Beef Growing Region Lamb Abattoir Lamb Growing Region

Livestock buyers purchase meat around Australia facilities – 2 we

• perate ourselves

Pork Abattoir

450‐500

tonnes

We produce

• f sausages

per week

tonnes

Darwin

• f our fresh fruit & veg

is Australian grown

96%

Mareeba Tully Innisfail M d bb Atherton Katherine Kununurra

is Australian grown

96%

Lockyer Valley Mundubbera Bundaberg Bowen Chinchilla Ti Tree Sunshine Coast

Carnarvon

1 billion kg fruit & veg

every year We buy

y y Stanthorpe Coffs Harbour Virgini a Dorrigo Menindee Bourke Hillston Adelaide Hills St George Perth Metro Gatton Warwick

80%

• f our fresh fruit & veg

direct off Australian farms We buy

Cobram & Shepparton Gembrook Yarra Valley

!

Thorpdale Pemberton, Donnybrook and Manjimup Riverland Sunraysia Swan Hill Metro Sydney Renmark Young Batlow Griffith Adelaide Hills Orange Bendigo Werribee

V t bl G i Fruit Growing Regions

80% direct off Australian farms

We buy

Huon Valley and Launceston North & South Tasmania

Vegetables Growing Regions Hard Produce Growing Regions RDC & DCs

We carry stock in our DCs for an average of l th

1day

less than

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

h i chain

• 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 li d f h

• 1. Quality and freshness:

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: L d ti f h t t DC

• Lead‐time from harvest to 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 k ith th l h h f th l t l k ft work with the people who are here for the long term, look after 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 t i bilit ti

• Sustainability practices
• 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 t

• ur customers

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

l l d

• Varietal trials and improvements
• Willingness to partner with Woolworths to develop exclusive

products

24

products