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  • Woolworths To Dump Dick Smiths

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    Woolworths has announced the outcome of its strategic review of its Dick Smith consumer electronics business. The review concluded that Woolworths' strengths are in larger format, high volume retail segments, while Dick Smith would be better positioned for future growth under new ownership. Woolworths will restructure Dick Smith with the goal of divesting the business, including closing up to 100 underperforming stores over the next two years. The divestment will allow Woolworths to focus more investment on its core businesses while ensuring Dick Smith continues to operate normally under new ownership.

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    Woolworths to dump Dick Smiths

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    Woolworths has announced the outcome of its strategic review of its Dick Smith consumer electronics business. The review concluded that Woolworths' strengths are in larger format, high volume retail segments, while Dick Smith would be better positioned for future growth under new ownership. Woolworths will restructure Dick Smith with the goal of divesting the business, including closing up to 100 underperforming stores over the next two years. The divestment will allow Woolworths to focus more investment on its core businesses while ensuring Dick Smith continues to operate normally under new ownership.

    Copyright:

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    Download as PDF, TXT or read online from Scribd
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    3K views3 pages

    Woolworths To Dump Dick Smiths

    Uploaded by

    ChrisBecker
    Woolworths has announced the outcome of its strategic review of its Dick Smith consumer electronics business. The review concluded that Woolworths' strengths are in larger format, high volume retail segments, while Dick Smith would be better positioned for future growth under new ownership. Woolworths will restructure Dick Smith with the goal of divesting the business, including closing up to 100 underperforming stores over the next two years. The divestment will allow Woolworths to focus more investment on its core businesses while ensuring Dick Smith continues to operate normally under new ownership.

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    of 3

    31 January 2012

    The Manager Companies Australian Securities Exchange Limited Company Announcements Office Level 4 20 Bridge Street Sydney NSW 2000

    Dear Sir/Madam RE: Woolworths Limited Consumer Electronics Strategic Review

    Please find attached announcement pertaining to the outcome of the Consumer Electronics strategic review.

    For and on behalf of WOOLWORTHS LIMITED

    PETER J HORTON
    Group General Counsel and Company Secretary

    31.01.12

    PRESSRELEASE

    WoolworthsannouncesoutcomeofConsumer Electronicsstrategicreview
    WoolworthsLimited(Woolworths)hastodayannounceditwillacceleratetherestructureof itsspecialtyconsumerelectronicsbrand,DickSmith,withaviewtodivestingthebusinessina stagedandconsideredprocess. Astrategicreview,announcedinNovember2011,concludedthatWoolworthsmainstrengths areprimarilyinlargerformat,multichannel,highvolumeretailsegmentswithmarketleading positions.ThefutureoftheDickSmithbusiness,whichisprofitable,experiencingpositivesales growthandhasastrongbrandposition,couldbebetterrealisedthroughnewownership. Thestrategicreview,conductedwithexpertexternalassistance,hasconcludedthat: ConsumerelectronicswillremainanimportantcategoryforWoolworthsandisbetter deliveredthroughBIGWanditsexpandingmultichanneloffer; TheinvestmentandmanagementattentiongiventoDickSmithhavebeen disproportionaterelativetoitspositionwithintheWoolworthsgroup.Thecompanys currentfocusisonacceleratinggrowthinitscoretradingdivisions; Followingfurtherrestructure,DickSmithwillbedivestedasagoingconcerntoan appropriatebuyerandwillcontinuetooperateasnormal.

    WoolworthsLimitedCEOGrantOBriensaid:DickSmithisaniconicspecialtyconsumer electronicsbrand,withastrongteamanditsownleadingonlinepresence.Ithasdeveloped intoatrustedtechnologyretailandserviceshub,carryingworldleadingbrandsandwith strongmarketshareinseveralkeycategories.Howeverwebelievethatseparatingthis specialitymodelfromWoolworthsisnowthebestoptionforthefutureofbothbusinesses. More

    2/ BusinesswillcontinueasusualforDickSmith,itscustomers,suppliersandstaff,buildingon thestrongChristmassalesperiod. MrOBriensaidconsumerelectronicsisanimportantcategoryforWoolworthscustomers, andthecompanyintendstocontinueitsgrowthinthiscategoryviatheBIGWbusiness. AdivestmentofDickSmithwillenabletheWoolworthsgrouptofocusmoreinvestmenton servingcustomersinitscorebusinesswithastrongmultichanneloffer,backedwithmarket leadingfulfilmentsystemsandaneffectivestorenetwork. Sincetheannouncementofthestrategicreview,Woolworthshasreceivedanumberof unsolicitedapproachesinrelationtoDickSmith.Woolworthswillnowexploretheseandall otherpotentialoptionstooptimiseshareholdervalue. Inordertomaximisevalueandbestpositionthebusinessfordivestment,Woolworthswill implementanumberofbusinessimprovementinitiativesidentifiedbythestrategicreview, includingacceleratingtherationalisationofthestorenetwork,withupto100 underperformingstoresidentifiedforclosurewithinthenexttwoyears.Affectedstaffwillbe offeredredeploymentelsewhereintheWoolworthsgroup. Arestructuringprovisionof$300mwillbetakeninthefirsthalfofFY12. GreenhillCaliburnhasbeenappointedtoadviseonthedivestmentprocesswithanobjective tomaximiseshareholdervalue.

    CONTACTDETAILS:WoolworthsPressOffice(02)88851033.

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