Woolworths Food for thought
Having made their mark as a purveyor of fine comestibles to the upper crust, Woolies, acutely aware of the challenges of the moment, are investing heavily in value. They announced last week that over the next two to three years they would be investing R1bn in prices, R750m of it in the Foods business. An initial R250m will be invested in the remainder of this financial year, much of it in the fresh chicken range such as all whole and portion chicken packs, excluding Easy to Cook, crumbed and marinated chicken. “We have also applied more promotions on everyday basics across Groceries, Household and Personal Care to be more affordable to more customers,” says Woolies SA CEO Zyda Rylands. The investment, she says, is the culmination of a process of optimising efficiencies in the business and value chain and passing savings on to embattled punters. In other Woolies news, our old and talented friend, and ex-Mr P director, Paul Knoop, is now GM of Menswear, a clear signal that Woolies is serious about the Apparel business.
Comment: Good moves both, and at the right time.