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What's gone wrong with Woolies? | What's gone wrong with Woolies? |
(about 5 hours later) | |
How can Woolworths entice back the crowds of the 1930s?Woolworths' profits are tumbling, but could they be turned around by the Mary Queen of Shops treatment? | How can Woolworths entice back the crowds of the 1930s?Woolworths' profits are tumbling, but could they be turned around by the Mary Queen of Shops treatment? |
The chain used to be a stalwart of the British high street, but recent years have seen empty Pic 'N' Mix aisles and falling sales. | The chain used to be a stalwart of the British high street, but recent years have seen empty Pic 'N' Mix aisles and falling sales. |
Caught between pound shops on one side and ever diversifying supermarkets on the other, the latest results paint a grim picture. | Caught between pound shops on one side and ever diversifying supermarkets on the other, the latest results paint a grim picture. |
It has announced underlying losses of £90m for the first half of the year and it has lost £250m of its value since separating from Kingfisher in 2001. | It has announced underlying losses of £90m for the first half of the year and it has lost £250m of its value since separating from Kingfisher in 2001. |
So what is going wrong? Retail strategist Mary Portas, better known as Mary Queen of Shops, visited the branch in London's Finchley Road to give her advice on saving the stores. | |
WHAT'S WRONG WITH WOOLIES | WHAT'S WRONG WITH WOOLIES |
There's no form of service whatsoever Mary Portas They don't stand for anything in the consumer's mind and I think they need to pick up a few really brilliant product categories and be famous for it. | There's no form of service whatsoever Mary Portas They don't stand for anything in the consumer's mind and I think they need to pick up a few really brilliant product categories and be famous for it. |
They need to define what it is they are to a consumer so that they become top in the consumer's head: "I must go and buy x; therefore Woolworths is top of my list." I think they could specialise particularly well in homeware. | They need to define what it is they are to a consumer so that they become top in the consumer's head: "I must go and buy x; therefore Woolworths is top of my list." I think they could specialise particularly well in homeware. |
The layout is ridiculously confusing, even the lacklustre lower-end supermarkets do a better job. I want it to be signed - and to be able to look at the different departments. At the moment, I wouldn't even be able to explain to you what departments they have - it's a jumble. | The layout is ridiculously confusing, even the lacklustre lower-end supermarkets do a better job. I want it to be signed - and to be able to look at the different departments. At the moment, I wouldn't even be able to explain to you what departments they have - it's a jumble. |
In-depth buying. If you're going to buy a product: do it in-depth. They just have a bit of everything. We went in to buy a dustpan and brush - and there was nothing on the shelf but they had it in the stock room. | In-depth buying. If you're going to buy a product: do it in-depth. They just have a bit of everything. We went in to buy a dustpan and brush - and there was nothing on the shelf but they had it in the stock room. |
You didn't feel that they were showing it off in a wonderful way, say in the way that a Wal-Mart would in the US where you go in and its stacked with every type of product. If Wal-Mart are going to do a shoe polish, they will have every kind of shoe polish imaginable. In Woolworths it is just bits and bobs.The Woolies Pic 'n' Mix aisle has a place in many childhood memories | You didn't feel that they were showing it off in a wonderful way, say in the way that a Wal-Mart would in the US where you go in and its stacked with every type of product. If Wal-Mart are going to do a shoe polish, they will have every kind of shoe polish imaginable. In Woolworths it is just bits and bobs.The Woolies Pic 'n' Mix aisle has a place in many childhood memories |
It was dirty. That is fundamental. | It was dirty. That is fundamental. |
Staffing. When you ask someone in B&Q about DIY, they know. There isn't a knowledge base in Woolworths from their staff and I think service is going to become more and more important. I did get the old adage of 'If it ain't on the shelf we ain't got it' - and they did have it - so stop that for a start. | Staffing. When you ask someone in B&Q about DIY, they know. There isn't a knowledge base in Woolworths from their staff and I think service is going to become more and more important. I did get the old adage of 'If it ain't on the shelf we ain't got it' - and they did have it - so stop that for a start. |
I also think that people want to go away feeling as if they have learned something and feeling confident that the shop will have the answer to a particular problem. There's none of that here, there's no form of service whatsoever. | I also think that people want to go away feeling as if they have learned something and feeling confident that the shop will have the answer to a particular problem. There's none of that here, there's no form of service whatsoever. |
CAN IT BE SAVED? | CAN IT BE SAVED? |
Woolworths has a network of 817 stores, sales worth more than £1bn and a huge amount of public recognition, but new chief executive Steve Johnson accepts that some of Portas' criticisms hit the mark. | Woolworths has a network of 817 stores, sales worth more than £1bn and a huge amount of public recognition, but new chief executive Steve Johnson accepts that some of Portas' criticisms hit the mark. |
"I don't think anyone is pretending that this business is as good as it should be," he says. | "I don't think anyone is pretending that this business is as good as it should be," he says. |
Johnson has unveiled his plan to turn the business around, with a strategy focused on strong Christmas sales and a back to basics approach. | Johnson has unveiled his plan to turn the business around, with a strategy focused on strong Christmas sales and a back to basics approach. |
"The last thing this business needs is lots of grand strategies," he says. | "The last thing this business needs is lots of grand strategies," he says. |
"What it needs now is some good basic retailing to fix some of the things that are clearly not right with the business." | "What it needs now is some good basic retailing to fix some of the things that are clearly not right with the business." |