Woolworths Case Study

1572 Words Nov 5th, 2010 7 Pages
Woolworths Case Analysis
Wandeli Loubser 15301648
BACKGROUND OF WOOLWORTHS
Woolworths began life in what had been the dining room of the old Royal Hotel in Cape Town on a sunny October morning in 1931 as a clothing store and was founded by Max Sonnenberg.
In 1934 Woolworths opened a second branch in Durban, followed in 1935 by branches in Port Elizabeth and Johannesburg. Shareholders who bought Woolworths stock in 1936 at 75c a share would have seen that stock grow to many, many times its original price as the Woolworths brand has become an entrenched icon in South African retail. Since 1936 the product range had expanded from clothing and shoes to include food, cosmetics, gift items, accessories, mobile phones, an extensive range of
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All of these clothing stores cater for more or less the same target market whereas Woolworths and Edgars have more adolescent ranges. In terms of price they Woolworths would compete with stores like Foschini and Truworths.

In the food industry Woolworths focus on having quality food everyday and all the time. They are known for their fresh produce and pride themselves on their “cold chain” concept where food is always stored between 5 and 0 degrees Celsius. They typically compete against supermarkets such as Shoprite, Spar and Pick n Pay obviously has a wider variety of groceries.
Woolworths also has a coffee shop in certain store outlets where they use products from their food market to prepare the meals. They would obviously compete against nearby restaurants in the shopping centre and in the nearby area.
PERSONAL EXPERIENCE WITH THE DIFFERENT WOOLWORTHS STORES
I frequently visit the Woolworths branches located in Paarl, Tygervalley and Eikestad Mall. All of them contains a food market, but only Paarl mall contains a coffee shop.
All though the layout of the stores are pretty much the same, female wear on the left, male on the right shoes and accessories in the middle and the food store and coffee shop is located at the back, they all differ in the unique way the store owner wants them to.
The variety and assortment in merchandise also differs. Seeing that Tygervalley’s branch is the biggest more merchandise assortment is located in

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