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Cape Town - There are many similarities between South Africa and Australia. Like Australia, South Africa is on steroids – but with so much more colour and enthusiasm.
This was said by Woolworths chief executive Ian Moir in a personal interview in the retail group’s Cape Town head office.
Moir, a Scot by birth, joined Woolworths about two years ago to take over the reins.
Before Woolworths, he spent 12 years in Australia as chief executive of the company's Country Road stores. But he is happy to be here now.
“Cape Town is truly the world's most beautiful city. Who would not want to live here?”
The results for Moir’s first financial year as chief executive were announced last month and the figures look good, with real increases in turnover and headline earnings per share.
He keeps the entire company on its toes. There is no time for leisurely pursuits like reading. While his wife and four daughters are still overseas, owing to school and university commitments, Woolworths occupies all Moir’s time.
“I miss my family, but I can give Woolworths all my attention. I'm grateful to have the time,” he said.
Every weekend he busies himself at floor level and he visits stores across the country. He notes their appearance, how the personnel behaves, who the customers are – and the heartbeat of the company.
Step into a Woolies store these days and you see a big difference from two years ago. Everything – from the labels to the variety of colours and sizes of clothing as well as the food – has been considerably expanded.
Even store layout is now very different, with clearly demarcated departments with room to sit and move around.
The advertisements display well-known South African personalities like Arno Carstens in Woolies clothing. In short: Woolworths has gained pizzazz.
Moir’s approach is innovative – his reaching out to staff, customers and shareholders reflects the expanded offerings in the stalls. “We do a great deal of research to find out what our customers want.
"In line with that, we have adapted the whole product range – food, fashions and prices have been improved according to customer needs and values.”
He reckons exciting times lie ahead not only for Woolworths, but also for the entire South African consumer environment. “LSM groups 5 to 8 are growing by leaps and bounds.
"They are younger, blacker and they spend more. The expectation is that within the next five years these groups will account for about 47% of spending on clothing and 43% of that on food.”
Woolworths is consequently grooming itself for the buying power of the growing black middle class, which likes Woolworths and regards the brand as ambitious.
“The market is coming to us. It's in very few global markets that retailers see this degree of growth. But we will not be the only ones to benefit. Retailers focusing on lower LSM groups will also benefit.”
He insists that Woolworths will still provide for its traditional customers’ needs, like their requests for fashionable and colourful – as well as larger and sexier – underwear on the stands.
Country Road is somewhat of an orphan Down Under and is having a difficult time in the struggling consumer environment.
But, according to Moir, the group has no plans to leave Australia. “It’s a good addition to our existing business and gives us another dimension. In fact, Country Road is doing well in the light of market conditions. I'm happy with its performance.”
To the satisfaction of shareholders last week the food, groceries and clothing retailer overtook Reinet Investments SCA’s place on the JSE’s Top 40 index.
Woolworths is now one of the JSE’s heavyweights.
Moir says consumers also have a great deal to be happy about.
“We are reintroducing two of our brands – Studio and RE. The colours are beautiful. They are also not only a collection of items, but clothing that goes together. The labels and marketing are new and completely different.”
He said customers can regularly expect new products. “We are also more aware of overseas trends and these will come to our stores much faster.”
Moir has put a punch into Woolworths and he expects good sales, even in the current economic climate.
Africa can expect big growth and Woolworths is ready for it.
Exciting times lie ahead for the company as well as the entire South African consumer environment, says Moir.
In the past month Woolworths announced that it wants to expand aggressively into Africa and increase its store space across the continent by 145% over the next three years.
The group's target market outside South Africa is the same – the high earners or LSM groups 8 to 10.
According to Moir, the continent certainly has the buying power to consume its offering.
Consumer spending is responsible for more than 60% of Africa’s gross domestic product (GDP) and this will increase with the rise of middle and higher income groups.
“The anticipated growth of African countries' GDP is of the highest in the world. There are certainly sufficient people in our market segments to support sales. Just look at markets like Nigeria – they are massive,” said Moir.
He reckons that in the next five to seven years the rest of Africa will account for about 10% of the company's sales, compared with the current 3%.
The product offering outside South Africa's borders is mainly clothing.
It's only in Botswana and Namibia that food is also being sold as Woolworths can depend on its South African infrastructure to ensure that quality is maintained.
- For more business news in Afrikaans, go to www.sake24.com
This was said by Woolworths chief executive Ian Moir in a personal interview in the retail group’s Cape Town head office.
Moir, a Scot by birth, joined Woolworths about two years ago to take over the reins.
Before Woolworths, he spent 12 years in Australia as chief executive of the company's Country Road stores. But he is happy to be here now.
“Cape Town is truly the world's most beautiful city. Who would not want to live here?”
The results for Moir’s first financial year as chief executive were announced last month and the figures look good, with real increases in turnover and headline earnings per share.
He keeps the entire company on its toes. There is no time for leisurely pursuits like reading. While his wife and four daughters are still overseas, owing to school and university commitments, Woolworths occupies all Moir’s time.
“I miss my family, but I can give Woolworths all my attention. I'm grateful to have the time,” he said.
Every weekend he busies himself at floor level and he visits stores across the country. He notes their appearance, how the personnel behaves, who the customers are – and the heartbeat of the company.
Step into a Woolies store these days and you see a big difference from two years ago. Everything – from the labels to the variety of colours and sizes of clothing as well as the food – has been considerably expanded.
Even store layout is now very different, with clearly demarcated departments with room to sit and move around.
The advertisements display well-known South African personalities like Arno Carstens in Woolies clothing. In short: Woolworths has gained pizzazz.
Moir’s approach is innovative – his reaching out to staff, customers and shareholders reflects the expanded offerings in the stalls. “We do a great deal of research to find out what our customers want.
"In line with that, we have adapted the whole product range – food, fashions and prices have been improved according to customer needs and values.”
He reckons exciting times lie ahead not only for Woolworths, but also for the entire South African consumer environment. “LSM groups 5 to 8 are growing by leaps and bounds.
"They are younger, blacker and they spend more. The expectation is that within the next five years these groups will account for about 47% of spending on clothing and 43% of that on food.”
Woolworths is consequently grooming itself for the buying power of the growing black middle class, which likes Woolworths and regards the brand as ambitious.
“The market is coming to us. It's in very few global markets that retailers see this degree of growth. But we will not be the only ones to benefit. Retailers focusing on lower LSM groups will also benefit.”
He insists that Woolworths will still provide for its traditional customers’ needs, like their requests for fashionable and colourful – as well as larger and sexier – underwear on the stands.
Country Road is somewhat of an orphan Down Under and is having a difficult time in the struggling consumer environment.
But, according to Moir, the group has no plans to leave Australia. “It’s a good addition to our existing business and gives us another dimension. In fact, Country Road is doing well in the light of market conditions. I'm happy with its performance.”
To the satisfaction of shareholders last week the food, groceries and clothing retailer overtook Reinet Investments SCA’s place on the JSE’s Top 40 index.
Woolworths is now one of the JSE’s heavyweights.
Moir says consumers also have a great deal to be happy about.
“We are reintroducing two of our brands – Studio and RE. The colours are beautiful. They are also not only a collection of items, but clothing that goes together. The labels and marketing are new and completely different.”
He said customers can regularly expect new products. “We are also more aware of overseas trends and these will come to our stores much faster.”
Moir has put a punch into Woolworths and he expects good sales, even in the current economic climate.
Africa can expect big growth and Woolworths is ready for it.
Exciting times lie ahead for the company as well as the entire South African consumer environment, says Moir.
In the past month Woolworths announced that it wants to expand aggressively into Africa and increase its store space across the continent by 145% over the next three years.
The group's target market outside South Africa is the same – the high earners or LSM groups 8 to 10.
According to Moir, the continent certainly has the buying power to consume its offering.
Consumer spending is responsible for more than 60% of Africa’s gross domestic product (GDP) and this will increase with the rise of middle and higher income groups.
“The anticipated growth of African countries' GDP is of the highest in the world. There are certainly sufficient people in our market segments to support sales. Just look at markets like Nigeria – they are massive,” said Moir.
He reckons that in the next five to seven years the rest of Africa will account for about 10% of the company's sales, compared with the current 3%.
The product offering outside South Africa's borders is mainly clothing.
It's only in Botswana and Namibia that food is also being sold as Woolworths can depend on its South African infrastructure to ensure that quality is maintained.
- For more business news in Afrikaans, go to www.sake24.com
