Variable

lack of understanding on achieving sustainability goals

level four black economic empowerment contributor in line with DTI codes
Advance skills development through training initiatives
accreditation of Woolworths’ courses
establishment of three provincial learning centres
Meet employment equity targets
create a skills pipeline for managers from previously disadvantaged group
Push the ‘‘South Africa first’’ policy
maintaining strong local and regional clothing and food sources
Introduce a BEE employee share ownership scheme
Utilise Woolworths’ expertise in enterprise development by working closely with emerging suppliers
Increase social contributions to more than R300 million per year
Introduce a fundraising programme in stores to raise money for orphans and vulnerable children
Develop a more effective model to distribute our surplus food and clothing.
Support employees in their community initiatives increase their contribution to needy causes
Increase organic and free-range food sales fourfold to over R1 billion per annum
increase organic content clothing sales to more than R1 billion per annum
Develop a South African organic cotton pipeline
transformation to healthy eating and lifestyles through the Good food journey
Accelerate environmental conservation and biodiversity programmes
Reduce Woolworths’ water consumption by 30 percent
Ensure that conventional produce farmers migrate to organic production
Work with suppliers to reduce water used and improve waste water management.
Introduce a wide range of hemp, bamboo, and soya fabrics
Sell no products of threatened species.
Work with experts to resolve wildlife/human conflicts
Reduce and recycle packaging from source through to customer
Introduce a nationwide programme supporting the recycling of customers’ waste
Eliminate excess packaging and offer more bulk packs.
Recycle all store equipment, including food trays and hangers.
Reduce relative carbon footprint by 30 percent by focusing on energy savings and
Largest retail chains in the country
expanded into Africa and the Middle East
Woolworths owned a majority share in Australian retail chain, Country Road
Diverse product range
high-quality fresh produce and convenience foods
company’s core values were quality and style, value for money, service, innovation, sustainability
drive to build lifetime relationships with its customers.
aggressive expansion programme, 230 new stores in 2000
opening stand-alone food stores in convenient suburban locations
five different store formats
food division targeted consumers in the middle-to-upper-income bracket
set a trend in food retailing that other food retailers were quick to follow
Woolworths’ food had become the star performer, positioning Woolworths as a premium brand
commitment to providing consumers with food that was safe and nutritious
first South African retailer to produce and sell organic meat and dairy products
wide range of healthy-food initiatives
Brand suffered due to the strength of the rand and the proliferation of cheaper, imported clothing
Launched initiatives to revitalise its clothing range
strong commitment to supporting local suppliers
Positioned as most desirable homeware store in South Africa in 2000
offered a range of financial services including a store card, Visa card, and revolving and fixed term loans
ABSA relieved Woolworths of the pressure of bad debt by taking over that side of the business
Woolworths allowed ABSA to market different financial service packages under their Woolworths brand
operating profit exceeded R1 billion in 2004
sales in clothing and home grew by 12 percent or more
food sales by between 19 and 22.5 percent each year
2006 Woolworths’ peak growth -clothing and home division increased 16.2 food division by 25.6 percent
food division now contributed 54.4 percent of the annual sales turnover
clothing market share increased from 15.1 percent in 2006 to 15.5 percent
September 2007 onwards turnover growth started to slow
rising interest rates
increase in petrol and food prices
2008 rising inflation averaging 11.6 percent
reduced sales growth in the clothing and home
Global economic crash in 2008
Food division maintained market share at 9.2 percent
Between 2004 and 2008, turnover had doubled from R10 to 20 billion
food prices had increased
new stores had been opened.
n 2008 Woolworths was a level six BEE contributor
60 % BEE recognition
distributed surplus food and clothing to local community initiatives
Driving force behind the MySchool, MyVillage and MyPlanet programmes
committed to supporting free-range farming, methods and animal welfare
offering consumers healthy food options
Agreed to set up model ‘‘green’’ factories with selected suppliers
In 2006, Woolworths created the Woolworths sustainability index - 77 percent score
New staff received induction training on the good business journey
Additional training for promising middle management staff
communication forum for management and staff to communicate effectively
Envirowatch newsletters to raise staff awareness of sustainability issues.
formation of partnerships with BEE suppliers
financial assistance and business training to emerging suppliers
Increased clothing and food donations from R183 million in 2007 to over R239 million in 2008
becoming South Africa’s leading retailer in certified organic fresh produce
first retailer in the country to form a partnership with the South African sustainable seafood initiative
original targets had been based on the international and local environments at that time
inability to achieve the transformation, energy, packaging and accountability targets
output of the manufacturing sector plunged by a record 21.8 percent
profit for the year fell from R1 billion in 2007 to R952 million in 2008
consumers were fast losing interest in sustainability issues, and were rather looking for the cheapest price
Woolworths partnered Heartbeat to promote community care for 3,000 orphans and vulnerable children
built the new 78,000 square metre Midrand distribution centre with environmental considerations
Woolworths initiated the recycling of used cooking oil to generate a 5 percent bio-diesel mix
initiated pilot programme in new refrigerant technology - 35 percent decrease in electricity usage
good business journey did not have a central budget, cost-cutting measures could not be applied
Challenging to attract, develop and retain black managers,
learning centres had not been established and the need for them was becoming more and more apparent
By 2008 only 3.8 percent of employees were on skills training
Finding appropriate BEE suppliers remained a challenge- sourcing small viable suppliers was difficult
Local textile mills had closed down- 30 percent of its textile production moved offshore
70 percent of the business remained local - SA designers could be employed by local manufacturers
Woolworths’ organic food sales exceeded target by 9.81 percent in 2008
ree-range sales were below target by 18.9 percent
68 percent of Woolworths’ trolleys and in-store shopping baskets were made from recyclable
low consumer interest in recycling
a lack of collection points
Lack of education amongst employees and consumers about waste management and recycling
pilot programm consisting of in-store communication about the nearest municipal recycling
establishment of collection points for the recycling of used compact flourescent light bulbs
Reducing consumer plastic bag usage was also proving to be a challenge
2008, Woolworth’s headed the JSE’s Top 100 carbon-disclosure leadership index
company was named as having ‘‘outstanding’’ climate change-related disclosure practices in 2008
10 percent decrease in energy usage from the 2004 benchmark achieved in 2008
Woolworths was predominantly an own-brand business
Good communication with suppliers - supplier days, meetings with suppliers, performance reviews
Auditing of suppliers to ensure compliance with the code
73 percent compliance, due to difficulties ensuring compliance from international suppliers
first retailer in the world to recognise its suppliers for their contributions to environmental protection
30 out of the 40 suppliers complied with Department of Water Affairs and Forestry requirements.
Positive response from civil society organisations to Woolworths
2008 International Responsible Retailer of the Year
escalating ‘‘price war’’ between the large retailers
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Strength / Threat

Launched initiatives to revitalise its clothing range

initiated pilot programme in new refrigerant technology - 35 percent decrease in electricity usage
becoming South Africa’s leading retailer in certified organic fresh produce
pilot programm consisting of in-store communication about the nearest municipal recycling

Additional training for promising middle management staff

 formation of partnerships with BEE suppliers
financial assistance and business training to emerging suppliers

company was named as having ‘‘outstanding’’ climate change-related disclosure practices in 2008

68 percent of Woolworths’ trolleys and in-store shopping baskets were made from recyclable
establishment of collection points for the recycling of used compact flourescent bulbs

2008, Woolworth’s headed the JSE’s Top 100 carbon-disclosure leadership index

Auditing of suppliers to ensure compliance with the code

2008 International Responsible Retailer of the Year

Weakness/ Opportunity
Introduce a nationwide programme supporting the recycling of customers’ waste
 new stores had been opened.
clothing market share increased from 15.1 percent in 2006 to 15.5 percent
Food division maintained market share at 9.2 percent
Between 2004 and 2008, turnover had doubled from R10 to 20 billion
food prices had increased

ABSA relieved Woolworths of the pressure of bad debt by taking over that side of the business
70 percent of the business remained local - SA designers could be employed by local manufacturers
tricity usage

Agreed to set up model ‘‘green’’ factories with selected suppliers

Positive response from civil society organisations to Woolworths

 Woolworths allowed ABSA to market different financial service packages under their Woolworths brand

tices in 2008

pilot programm consisting of in-store communication about the nearest municipal recycling

Positive response from civil society organisations to Woolworths

nufacturers
oolworths brand