Woolworths A pinch of class, a dash of flair
Slow news week, so a quick check in with, let’s see, Woolies, from whom we haven’t heard much lately. Did you know, for example, that it has exclusivity arrangements with suppliers of their multitudinous private label lines, many of these arranged with a handshake, many years ago. Such suppliers include the Rhodes Food Group, Libstar and Interfoods. For their limited range of branded goods, naturally, such restrictions do not apply. And speaking of private label: there is currently a dearth of suppliers to meet the growing demands of the major retailers in a time of tightened belts – surely an opportunity for businesses wishing to grow their sales. Woolies is currently upping its game as the craze for mealkits drags on, launching a more upmarket range of recipe boxes as Ucook, Takealot, Daily Dish and even Netflorist bring the heat in this contested novelty space. And finally, the ongoing success of Woolies Foods has been buoyed over the past couple of difficult years by its investment in price, particularly in the poultry category, where South Africans are always on the hunt for value.
Comment: Challenges abound for this iconic South African brand. But if it loses its disastrous Aussie assets and aligns the rest of the business in support of its flagship food offering, it will weather the storm.