FROM BEHIND THE PAYWALL
Why Woolworths is getting whipped
First published in September 2017.
Woolworths’ troubles stem from a combination of external factors and its own missteps. But those willing to sit it out can expect the business to be in a much stronger position in the next three years, according to group CEO Ian Moir. This is not a happy story. It is a story of trepidation, disappointment and unmet promises. Growth has slowed at Woolworths, until now the perennial darling of the retail sector. At the heart of its problems lies Australian department chain David Jones (DJs), which Woolworths bought in April 2014 for R23.3bn — the largest-yet deal involving an SA retailer, which some analysts warned was a steep price to pay. Group CEO Moir (58), a Scot who was CEO of Country Road in Australia for a decade before taking the reins at Woolworths in 2010, knew it wouldn’t be easy. But he probably never expected it to be this hard to turn Australia’s largest department store chain around. This year, its stock has tumbled 16.5% — worse than any other retailer, including clot...
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