Wesfarmers Limited · ASX:WES
Wesfarmers — Investor Day (November 2009)
36 slides from Wesfarmers's investor day presentation, Nov 24, 2009
Slide 1: Site tour overview
Site tour overview Ian McLeod 24 November 2009
Slide 2: Building a solid foundation
Building a solid foundation… • Many complex issues to fix Fresh Value Range • Reversal of sustained under investment • Creation of a dynamic forward Efficiency Service Culture thinking business culture • Multi‐faceted Multi faceted recovery plan required Store Capability Infrastructure • Recovery to
Slide 3: Our focus today
Our focus today... Sold and served with personality Excellent availability Truly better value Stunning, quality Working smarter stores coles
Slide 4: coles
coles
Slide 5: People & Culture
People & Culture Amber McDougall 24 November 2009
Slide 6: People and Capability Focus
People and Capability Focus Sold and served with personality Excellent availability The best customer experience Stunning, quality fresh food Working smarter stores coles
Slide 7: Strategic Priorities
Strategic Priorities Capability Efficiency Culture Right People Right Time Right Attitude Right Skills Right Place Right Engagement • Recruiting • Better customer service • Changing Behaviours • Performance related p payy • Improving p g productivity p y • Drivingg engagement g g • Training and Deve
Slide 8: Right People, Right Skills
Right People, Right Skills C Capability bili Recruiting • Broaden B d depthd h off Senior S i Management Performance related pay • Extending incentives down into stores Training & development • Store skills and service • Graduate program • Retail Leaders Ben Avery – Retail Leader Level 1 Penrith Tal
Slide 9: Right Time, Right Place
Right Time, Right Place Effi i Efficiency Unplanned Absenteeism % Better customer service 6.50% • Align rosters to meet customer demand 6.00% • Changing labour mix 5.50% Previous 12 months Improving productivity Last 12 months 5.00% • Greater workforce stability 4.50% • Enhanced training & developme
Slide 10: Right Attitude, Right Engagement
Right Attitude Right Engagement C lt Culture Changing behaviours • Customer focus • Store focus on listening & acting • Becoming Store Centric at g Tooronga Driving engagement • Improved management communication • Targeted and regular store team surveys
Slide 11: Slide 11
Slide 12: Renewal Formats
Renewal Formats Gavin Parker 24 November 2009
Slide 13: Our Circle for Success
Our Circle for Success The best customer experience Sold and Truly served with better personality value coles Stunning, Excellent quality availability fresh food Working smarter stores coles
Slide 14: Renewal Operating Model
Renewal Operating Model Operations Customer Fresh Economics Effi i Efficiency Offer Environment Soul of a market Mind of a supermarket
Slide 15: Renewal Layout
Renewal Layout ey Coffee Sugar Confectionery Non groct _ Cereal | Milk Meat Bakery at Takeaway / Value il — Cheese Hi I | LH te S I + Deli id ie ee ed te r Daley — — Market hall = = vinnnnnnean fy My), nt Hot Chickens CS) 8 Bo @ EE e SS ) — iJ © SSS GC) a @ —— © Si SS © yd © —<—— a an Ea Entrance nt
Slide 16: Exterior Renewal
Exterior Renewal Before After
Slide 17: Entrance Area Renewal
Entrance Area Renewal Before After
Slide 18: Fresh Produce Renewal
Fresh Produce Renewal Before After
Slide 19: Deli Renewal
Deli Renewal Before After
Slide 20: Meat Renewal
Meat Renewal Before After
Slide 21: Bakery Renewal
Bakery Renewal Before After
Slide 22: Grocery Renewal
Grocery Renewal Before After
Slide 23: Health, Beauty & Baby Renewal
Health, Beauty & Baby Renewal Before After
Slide 24: Checkout Area Renewal
Checkout Area Renewal Before After
Slide 25: How are customers reacting to renewal stores?
How are customers reacting to renewal stores? A big improvement to shoppers • Wider aisles and more open layout • Open service had a noticeable impact Most impacted by changes in fresh • Fresh produce a big improvement • In‐store butcher a welcome addition, increasing quality perception in meat • Se
Slide 26: Where we are now
Where we are now +4 +3 +3 + 13 +9
Slide 27: Summary
Summary • 30+ stores now trading • 50 planned by financial year end • All states & demographics now covered • Store insights into sales, customers and economics • Plug and play model identified • Broader rollout planned for FY11
Slide 28: coles
coles
Slide 29: Our Supply Chain
Our Supply Chain Jim Redfern 24 November b 2009
Slide 30: Our Circle for Success
Our Circle for Success... Excellent availability Working smarter stores Truly better value Stunning, quality fresh food coles
Slide 31: Leveraging our supply chain
Leveraging our supply chain… • A new supply chain network – Reduce R d ffrom over 40 sites it tto 23 – DC transformation completed – Over last three years • 10 new sites opened • 20 closures – Only invest for future growth – Focus now on optimisation • Fresher for Customers • Simpler Si l forf Store
Slide 32: Key facts about logistics
Key facts about logistics Number of Sites 23 Coles Operated Sites 10 Third Party Sites 13 Coles Team Members ~3,350 Inbound pallets weekly ~150,000 C t Cartons d despatched t h d weekly kl >11 000 000 >11,000,000 Loads to Stores weekly >17,000 Container movements ~10,000 TEU’s per year
Slide 33: Chilled Network
Chilled Network Carter & Spencer • Fresh produce Parkinson CDC Carter & Spencer • Chill • Fresh produce • Frozen Costas • Fresh F h produce d St George • Fresh produce Costas • Fresh p produce Edinburgh Parks CDC Eastern • Ambient Creek CDC • Chill • Chill • Frozen • Frozen Kewdale CDC • Ambient Cos
Slide 34: Ambient Network
Ambient Network Forest Lake DC Heathwood DC • Ambient • Ambient Smeaton Goulburn DC Grange DC • Ambient • Ambient Edinburgh Parks CDC • Ambient Eastern • Chill Creek NDC • Frozen • Ambient Altona RDC • Ambient Kewdale CDC • Ambient Launceston DC • Chill Somerton NDC • Ambient • Frozen • Ambient
Slide 35: Key facts about Somerton
Key facts about Somerton • One of Two NDC’s • Operated by Toll In2Store • Services •Victoria ‐ GR/GM/LQ •Tasmania T i ‐ GM •South Aust ‐ GR/GM •West Aust ‐ GM • Circa 13K Sku’s "Somerton NDC is an outstanding example of leading edge, paperless technology covering 72,000 square metres under one roof,
Slide 36: Fresher for Customers, Simpler for Stores
2010 Fresher for Customers Simpler l ffor Stores