Australian unit David Jones plunges Woolies into the red
The retailer says it will write down the value of David Jones by R6.9bn, admitting that it overpaid for it
Four years after finalising the R21.5bn acquisition of Australia’s David Jones department store, Woolworths is set to report its first annual loss since listing in 1997 as it struggles to bed down the acquisition, which in 2014 was described as “transformational”. Woolworths said in January that it would write down the value of David Jones by R6.9bn, admitting that it had overpaid for it. The share price is down 18.6% since the start of 2018, lagging both the JSE’s all share and general retailers indices. In 2014, Woolworths CEO Ian Moir said the David Jones purchase would create one of the leading retailers in the southern hemisphere, benefiting from an increased number of stores and concurrent fashion season. “This is transformational for Woolworths. This will allow us to take market share from others, both in South Africa and Australia,” Moir said at the time. One industry analyst, who did not want to be named, said the deal was done at the height of the Zuma years, when many Sou...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.