Woolworths Holdings Limited · JSE:WHL
Woolworths — Investor Presentation (May 2015)
24 slides from Woolworths's investor presentation, May 2015
Slide 1: David Jones
DAVID JONES
Slide 2: Disclaimer
DISCLAIMER Disclaimer STRATEGY UPDATE PG 02
Slide 3: Inspiring the limitless potential of people
Inspiring the limitless potential of people
Slide 4: Agenda
AGENDA Agenda 01. Background 02. Inspiring: Insights i. Market ii. Customer iii. Profitability 03. Inspiring: Strategy i. Customer cog methodology ii. Customer and brand iii. Integrated Loyalty and Financial Service iv. Right product, right place, right price v. Value chain and efficiency vi. Omni c
Slide 5: Background
BACKGROUND Background • Last year in August, Woolworths, Country Road Group and David Jones came together to form one of the largest retailers in the Southern Hemisphere. • At the time of the acquisition we presented an inspiring strategic hypothesis about the potential future of David Jones, and ou
Slide 6: 02. Inspiring: Insights
INSPIRING: INSIGHTS 02. Inspiring: Insights STRATEGY UPDATE PG 06
Slide 7: Our customers are spending and the market is growing!
INSPIRING: INSIGHTS - MARKET Our customers are spending and the market is growing! Department store nominal sales growth Clothing and accessories nominal sales growth % % 10 10 CAGR: 1990-2014: +2.5% CAGR: 1990-2014: +4.1% 8.6 8.5 8.6 8 8 7.2 6.9 6.9 6.7 6.5 6.6 6 5.7 5.6 6 5.7 5.4 4.7 4.6 4.5 4.2 4
Slide 8: Department stores
INSPIRING: INSIGHTS - MARKET We are performing well against the department store sector and now shift our focus to specialty Market share Year on year growth in sales David Jones There are three markets Specialty We have defined our relevant market as specialty and competing which we compare David 8
Slide 9: Our customer is firmly positioned in the top two of five spend bands
INSPIRING: INSIGHTS - CUSTOMER Our customer is firmly positioned in the top two of five spend bands in Australia Our customers are in the Affluence and Age DJs Customer is in line upper tier of Australians with the Australian population Band 4 + 5 (Top affluence) is younger Over 70% of DJs than once
Slide 10: Our customer spend is tracked in each segment of our 16 Box Grid
INSPIRING: INSIGHTS - CUSTOMER Our customer spend is tracked in each segment of our 16 Box Grid. They are predominantly shopping between contemporary and modern fashion in better, bridge and luxury brands Fashion Preferences Fashion Preferences Contemporary + Modern make up $74 10% 7% 67% of busines
Slide 11: 03. Inspiring: Strategy
INSPIRING: STRATEGY 03. Inspiring: Strategy STRATEGY UPDATE PG 11
Slide 12: Customer cog methodology
INSPIRING: STRATEGY Customer cog methodology Loyalty and Financial Services • Introduction of integrated loyalty & FS - program Merchandise Omni Channel • Optimise brand assortment • Optimise store portfolio • CRG expansion • Revise format strategy • WHL launch • Launch new stores • Grow online and
Slide 13: Customer and brand
INSPIRING: STRATEGY Customer and brand Inspiring the limitless potential of people Key strategic shifts Business transformation initiatives: Bau initiatives: • The 16 box grid market size and • Deliver relevant, accurate customer and opportunity ensures our marketing market insights communications s
Slide 14: Integrated Loyalty and Financial Services
INSPIRING: STRATEGY Integrated Loyalty and Financial Services We will launch an integrated regional loyalty and financial service program Key strategic shifts Business transformation initiatives: Bau initiatives: • Launch an integrated and tiered David • Our future strategy will be inspiring, Jones
Slide 15: Right product, right place, right price
INSPIRING: STRATEGY Right product, right place, right price We are well underway in delivering a transformation in our assortment and value chain Key strategic shifts Business transformation initiatives: Bau initiatives: • Optimise brand assortment using the 16 • Increase market dominance & box grid
Slide 16: CRG Expansion
INSPIRING: STRATEGY CRG Expansion By June 2015, CRG Brands will occupy c. 22,500 sqms in DJS stores. Currently it accounts for c. 6,800 sqms • Project is tracking ahead of the business case • Trenery has launched and has been well received by customers • The roll out has commenced, all divisions lau
Slide 17: WHL brand and private label
INSPIRING: STRATEGY WHL brand and private label We continue to evolve our phased strategy that will see the combined WHL and DJS Private Label offering grow from 3.5% to 20.0% of total sales STRATEGIC APPROACH DESCRIPTION • Studio W, Re, JT One, Distraction Introduce existing WHL Brands • Magic Shap
Slide 18: Value chain and efficiency
INSPIRING: STRATEGY Value chain and efficiency Key strategic shifts Information Technology: Finance: Efficiency: • IT strategy to shift • Group NTP function • Ongoing regional / towards providing and established to deliver Group restructuring maintaining enabling savings from a larger initiatives an
Slide 19: Omni-channel, clicks: Digital
INSPIRING: STRATEGY Omni-channel, clicks: Digital Key strategic shifts Business transformation initiatives: Bau initiatives: • Implementation of platform update • Further collaboration with online and/or re-platform in order to: merchandise team to improve: • Enable more flexibility/greater • Produc
Slide 20: Omni-channel, bricks: Retail operations
INSPIRING: STRATEGY Omni-channel, bricks: Retail operations Key strategic shifts Bau initiatives: • We are restructuring our retail operations to inspire the potential of our people to offer a transformation in customer experience and delivering operational brilliance. We will: • Introduce a new sta
Slide 21: Omni-channel, bricks: Real estate
INSPIRING: STRATEGY Omni-channel, bricks: Real estate Key strategic shifts Business transformation initiatives: • Our real estate strategy is designed to expand and optimise our store footprint and drive improved productivity and profitability. We will: • Grow retail footprint • Explore new formats
Slide 22: 04. Inspiring: Progress to date
INSPIRING : PROGRESS TO DATE 04. Inspiring: Progress to date STRATEGY UPDATE PG 22
Slide 23: Achievements to date
INSPIRING : PROGRESS TO DATE Achievements to date Inspire our Inspire our Inspire our Inspire our team customers partners community • Engagement survey • Bold new AW season • Reduction in aged • Alignment of GBJ to score of 80% launch inventory Group Strategy • Revised communications • Key events to
Slide 24: 05. Close
CLOSE 05. Close STRATEGY UPDATE PG 24
Woolworths Holdings — Investor Presentation (May 2015) on 6ix