Operating a company in multiple regions is tough. Even in the age of private jets, Skype and e-mail. Woolworths took the gamble four years ago with its acquisition of David Jones, a struggling Australian retailer more than 11000km away and operating some nine hours ahead of its Cape Town headquarters. Woolworths also owns Country Road, which trades in New Zealand as well as Australia and South Africa. Aligning all three divisions with their separate boards was the task facing CEO Ian Moir, who has headed the South African retailer since November 2010. This week, the difficulty of managing operations on two continents became apparent. Woolworths warned shareholders that headline earnings may drop as much as 17.5% because of difficulties in both regions: a sluggish South African economy and an Australian retail environment that is under pressure. The retailer's shares fell nearly 9% on the news but recovered to end the week at R67.29. The share finished 2017 down 8%, following a 29% d...
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.