News dalla rete ITA

10 Marzo 2020

Australia

WOOLWORTHS' NEW STORE MODEL UNDER SPOTLIGHT

Woolworths' new store operating model is under scrutiny following a puzzling slowdown in same-store sales growth in the retailer's earnings engine room, Australian supermarkets.Woolworths same-store sales had risen about 2 per cent in the first seven weeks of the March quarter, compared with 4.8 per cent in the December quarter and 6.6 per cent in the September quarter, which was buoyed by a popular Lion King collectables promotion.In contrast, Coles indicated its same-store sales had risen in line with the 3.6 per cent growth in the December quarter, the strongest growth since the successful Little Shop 1 promotion in 2019.Woolworths chief executive Brad Banducci said the sudden drop in momentum was due to the bushfires, which impacted trading in about 130 stores in holiday areas, the coronavirus, which led to lower foot traffic and weaker sales of infant formula in about 60 stores with a high proportion of Asian customers, and falling tobacco sales.However, Citigroup analyst Bryan Raymond pointed the finger at controversial changes to Woolworths' store operating model, where team leaders were replaced with a single manager to create more customer-facing roles. The new model led to thousands of redundancies and role changes and appears to have dented customer satisfaction.Mr Raymond said that while Coles had reinvested cost savings from its Smarter Selling program into more store staff, Woolworths' new store operating model, which was aimed at cutting costs and improving customer service, had disrupted in-store teams and had an impact on trading. The Woolworths customers' net promoter score, which measures customer satisfaction with checkout queues, in-store service and stock availability, fell 4 points to 51 in the December quarter, from 55 in the year-ago period. (ICE SYDNEY)


Fonte notizia: AFR 27/02/2020