Wesfarmers Limited · ASX:WES
Wesfarmers — Corporate Update (November 2009)
37 slides from Wesfarmers's corporate update, Nov 24, 2009
Slide 1: Coles Investor Site Tour Presentations, Melbourne
For personal use only 24 November 2009 The Manager Company Announcements Office Australian Securities Exchange Dear Sir, COLES INVESTOR SITE TOUR PRESENTATIONS, MELBOURNE The following presentations are to be given at a Coles investor site tour in Melbourne on 24 November 2009. Yours faithfully, L J
Slide 2: Site tour overview
For personal use only Site tour overview Ian McLeod 24 November 2009
Slide 3: Building a solid foundation
Building a solid foundation… For personal use only • 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 Infras
Slide 4: Our focus today
For personal use only Our focus today…
Slide 5: For personal use only
AjuoO SSN feuosJed JO coles
Slide 6: People & Culture
For personal use only People & Culture Amber McDougall 24 November 2009
Slide 7: People and Capability Focus
People and Capability Focus For personal use only
Slide 8: Strategic Priorities
Strategic Priorities For personal use only 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
Slide 9: Right People, Right Skills
Right People, Right Skills C Capability bili For personal use only 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 Lead
Slide 10: Right Time, Right Place
Right Time, Right Place Effi i Efficiency For personal use only 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% • Enhance
Slide 11: Right Attitude, Right Engagement
Right Attitude Right Engagement C lt Culture For personal use only 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 12: For personal use only
For personal use only
Slide 13: Renewal Formats
For personal use only Renewal Formats Gavin Parker 24 November 2009
Slide 14: Our Circle for Success
Our Circle for Success For personal use only
Slide 15: Renewal Operating Model
Renewal Operating Model For personal use only Operations Customer Fresh Economics Effi i Efficiency Offer Environment Soul of a market Mind of a supermarket
Slide 16: Renewal Layout
For personal use only Renewal Layout
Slide 17: Exterior Renewal
Exterior Renewal For personal use only Before After
Slide 18: Entrance Area Renewal
Entrance Area Renewal For personal use only Before After
Slide 19: Fresh Produce Renewal
Fresh Produce Renewal For personal use only Before After
Slide 20: Deli Renewal
Deli Renewal For personal use only Before After
Slide 21: Meat Renewal
Meat Renewal For personal use only Before After
Slide 22: Bakery Renewal
Bakery Renewal For personal use only Before After
Slide 23: Grocery Renewal
Grocery Renewal For personal use only Before After
Slide 24: Health, Beauty & Baby Renewal
Health, Beauty & Baby Renewal For personal use only Before After
Slide 25: Checkout Area Renewal
Checkout Area Renewal For personal use only Before After
Slide 26: How are customers reacting to renewal stores?
How are customers reacting to renewal stores? For personal use only 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 p
Slide 27: Where we are now
Where we are now For personal use only +4 +3 +3 + 13 +9
Slide 28: Summary
Summary For personal use only • 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 29: For personal use only
AjuoO SSN feuosJed JO coles
Slide 30: Our Supply Chain
For personal use only Our Supply Chain Jim Redfern 24 November b 2009
Slide 31: Our Circle for Success
Our Circle for Success… For personal use only
Slide 32: Leveraging our supply chain
Leveraging our supply chain… For personal use only • 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 • S
Slide 33: Key facts about logistics
Key facts about logistics For personal use only 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
Slide 34: Chilled Network
Chilled Network Carter & Spencer • Fresh produce For personal use only 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 Kew
Slide 35: Ambient Network
Ambient Network For personal use only 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 •
Slide 36: Key facts about Somerton
Key facts about Somerton For personal use only • 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
Slide 37: Fresher for Customers, Simpler for Stores
For personal use only 2010 Fresher for Customers Simpler l ffor Stores