Woolworth Company Structure

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Woolworth Limited is the largest retail company in New Zealand and Australia by sales and market gains. Inarguably, the Company is also in e of the largest food retailer in the larger Australian market. Moreover, the Company engages in large scale poker gaming machines as well as hotel and liquor retailing throughout the Australian market. Ever since it relisted in 1993, Woolworth has been one of the most successful retailing companies in Australia. The Company’s organization structures have been major boosts for the tremendous success. The core strategies that have fostered consistent growth of the company have been the Everyday Low Prices (EDLP) and Fresh Food People strategies. Over a 10 year period since 2003, the company has registered cumulative cost savings of close to $10 billion. Consequently, this has led to a remarkable reduction in Cost of doing business to sales ratio to around 25%. These figures could be far much better if the company further rationalizes the switch to national and regional distribution locations and also to the nonfood sector. The Company structure has been dynamic over the past few years, with the change from its former method of consumer electronics to adoption of the now current and modern Home improvement segment. The Company has always strived to enhance shareholder value through facilitating a return of capital to shareholders. The company has managed to return to shareholders a record $13.2 billion since 2001 through payment of dividends. The trading environment in 2013, however, did not permit share buyback. Nonetheless, the final dividends in 2013 were inclusive of off market and on market share buybacks. Undeniably, over the last couple of years, Woolworth has been using its remarkable b... ... middle of paper ... ... leading brand in the entire country. Secondly, the $1.4 billion property transfer from the Consumer electronics business to the SCA property group was a monumental boost on the company’s portfolio and ultimately maximized shareholder value. Thirdly, the Managing directors report showcases the strong capacity of Woolworth to build new businesses. Without overlooking the fact that Woolworth is the largest Kiwi and Australian online retailer, the report documents the company’s projections to make over $1 billion sales in the financial year 2014. Finally, the report appreciates that the company has over time worked and attained its major objective of being smarter and more efficient. The report assures shareholders that the 50% holdings in Quantium emphasize on the leading position that Woolworth has in understanding consumer insights. CORPORATE GOVERNANCE STATEMENT

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