Woolworths has announced its new three-year ‘Lean Retail’ model, with A$500m to be saved in the 2015/16 financial year, according to the leading Australian retailer.
Woolworths CEO Grant O’Brian has also announced 400 jobs will be cut, while more than 80 stores will be refurbished each year as part of a focus on improving its customer experience.
Woolworths will also expand its home-brand produce to tackle increased competition from Coles and Aldi, with a focus on “lower pricing, better ranging [and] targeted customer offers using a revised and improved loyalty system”, according to a company statement released 6 May.
“Price is of course a key driver, and we will invest in ensuring we will not be beaten on price, but our customers also now expect greater use of technology and innovative offers to make their shopping easier and more enjoyable,” Woolworths CEO Grant O’Brien said.
Part of the Lean Retail operating model will be the streamlining of Woolworths Limited’s Australian and New Zealand supermarkets under one division called ‘Woolworths Food Group’, managed by Brad Banducci.
“This structure will allow for greater sharing of opportunities and cost savings across our supermarkets operations so that we can find new ways to delight our customers,” O’Brien said.
