Executive Summary
Established in 1924, Woolworths Group Limited is one of the largest companies in Australia (IBISWorld 2020). It currently operates in Australia and New Zealand across several divisions, including Australian Food, New Zealand Food, Big W, Endeavour Drinks, Hotels and Petrol. The company overall serves more than 28 million loyal customers every week (Woolworths Group Limited 2021).
This report assesses Woolworth’s competitive strength in the Australian Food division, including Woolworths Supermarkets and Metro Food Stores, in the Australian Supermarkets and Grocery Stores industry. The firm operates 1,052 Woolworths Supermarkets and Metro Food Stores in 2020 (Woolworths Group 2020). Woolworths’s performance is analysed with four metrics – market share and relative market share, year-on-year growth and CAGR, inventory turnover and inventory days, and sales per square metre, followed by improvement opportunities and recommendations.
Based on the calculations, Woolworths currently is in a leading position with a 36.44% market share in 2020. The industry’s total revenue increased from $108,109 million in 2016 to $115,681 million in 2020. Woolworths’ key to success includes improved grocery differentiation, customer orientation, promotional efforts, inventory management and store productivity. To maintain its market leadership and profit growth, Woolworths is recommended to expand the private-label healthy range of pre-prepared meals, reinvent seasonal displays and events, and adopt new technology across the supply chain. All the analysis and calculations are based on companies’ annual reports and industry reports.
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