Woolworths steps up battle for affluent shoppers
The retailer is facing fierce competition from rivals Pick n Pay and Shoprite-owned Checkers, which have been pushing hard into the higher-margin upmarket niche previously dominated by Woolworths.
Pick n Pay and Checkers are overhauling their stores, introducing fresh produce, premium prepared food and free-range meat, as well as launching on-demand grocery delivery services.
Increasing store footprint, online capacity
“Whilst our competitors have actively been opening new stores and new formats, we’ve been consolidating our position, and that’s seen us lose some market share in the post-Covid world,” Woolworths chief executive Roy Bagattini told investors after the company reported 4.2% food sales growth in the year to 26 June, down from 6.9% the previous year.
Since 2020 Woolworths’ store footprint has grown by 3%, which is “not competitive enough”, he said.
“We’re now stepping up our space growth in a very targeted way through new stores and the expansion of existing footprints, which will enable our growth in new categories such as pet, wellness and liquor,” Bagattini said.
Woolworths will also increase online capacity by doubling its on-demand delivery fulfilment stores, he added. It currently has 48 such sites.
Courtesy of Bizcommunity – read full article here.