Woolworths Supermarkets

This article is about the Australian supermarket. For other retail establishments of the same name, see Woolworth.
Woolworths Supermarkets
Subsidiary
Industry Retail
Founded 1924
Headquarters Bella Vista, New South Wales, Australia
Number of locations
 961[1]
Key people
 Brad Banducci, Director – Australian Supermarkets and Petrol
Revenue Increase A$42.132 billion (2015)
Number of employees
 111,000[1]
Parent Woolworths Limited
Slogan The Fresh Food People
Website Brand Site - woolworths.com.au, Online Shop - woolworthsonline.com.au
A Woolworths supermarket, before rebranding, located in the Wagga Wagga Marketplace
A Woolworths supermarket in Temora, New South Wales
Melbourne's first newly branded Woolworths supermarket in Chadstone, Victoria.[2]
The Woolworths supermarkets logo, used from 1987 until 2008

Woolworths Supermarkets (colloquially known as "Woolies") is a supermarket/grocery store chain in Australia owned by Woolworths Limited. Along with Coles, Woolworths form a near duopoly of Australian supermarkets, together accounting for about 80% of the Australian market. [3][4][5]

Woolworths mostly specialises in selling groceries (vegetables, fruit, meat, packaged foods, etc.), but they also sell magazines, DVDs and stationery items. Woolworths currently operates 980 stores across Australia, as well as a further 16 convenience stores carrying the same logo, without the Woolworths name.[6] Some Woolworths supermarkets trade as 'Safeway' stores in Victoria, including three stores in Melbourne's suburbs and surrounding areas, and four in rural Victoria, as well as one in southern New South Wales.

History

Woolworths Limited was founded in September 1924, originally under the name "Wallworths Bazaar Ltd", a play on the internationally renowned F. W. Woolworth name. After discovering the name had not been registered in Australia, and Woolworths had no plans for overseas expansion, the company became "Woolworths Limited" on 22 September 1924.[7] Following the company's first "Bargain Basement" opening on Sydney's Pitt Street, there was little interest in shareholders to accelerate the brand's growth. However, as trading continued and shareholders brought more capital, the dividends paid by the company increased from 5% to 50% after its third year of operation.

Consumer interest in the company grew after December 1924, as more branches of the store were established across Australia. Woolworths stores began selling a variety of goods, claiming the cheapest prices as well as money back guarantees.[8] At the forefront of innovation in Australia, Woolworths stores became the first variety store in the world to install receipt printing cash register machines in 1926.[9] Nearly twenty years after the company's establishment, Woolworths had a store in every state in Australia, following the opening of their Hobart store in 1940.[10] With the company and its stores doing successfully, Woolworths began to experiment with expanding their grocery range; more stores began stocking fresh fruits and vegetables and a larger range of food. As Woolworths began to gradually transition to becoming exclusively a grocery store, this saw the creation of the first "Big W" store in 1955, the brand's department store counterpart.

Safeway

In 1982, Woolworths acquired two Tasmanian grocery brands: Roelf Vos and Purity, which became Woolworths in 2000. The biggest buyout from Woolworths came in 1985, after American supermarket giant Safeway had amalgamated with an independently owned Victorian supermarket in 1961; establishing the Safeway brand in Australia. Woolworths took over Safeway Australia in 1985, which had stores in Victoria and Queensland; the Woolworths name was affixed to the Queensland stores with the Victorian stores remaining as Safeway, with their identity newly stylised to match the Woolworths brand.[11] Following the rebranding in 2008, Woolworths began phasing out their Victorian Safeway stores, rebranding them as Woolworths supermarkets.

"Fresh Food People"

The current logo with the "Australia's Fresh Food People" slogan, used from 2012 until 2014

In 1987, Woolworths launched their "Fresh Food People" campaign, the fundamental campaign that existed until 2012, when they replaced their long-running slogan with "Australia's Fresh Food People" [12] to more directly identify them as "Aussie". Then they brought the original "Fresh Food People" slogan back in 2014 along with a new commercial lineup.

Loyalty schemes

Loyalty schemes include a number of incentives for purchasing at their stores by subsidising petrol prices at Caltex Woolworths petrol stations and the now defunct Woolworths Plus Petrol. Discounts included 2-cent, 4-cent, 6-cent and in some regional areas 10-cent discounts on fuel when purchases over certain amounts were conducted. As of September 2009, the current offer is a 4 cent/L discount when transactions of over $30 are conducted in-store, with a further 4-cent discount available if customers spend another $5 or more on other items at the petrol site.

Woolworths Rewards and credit card

Everyday Rewards Card

In September 2007, a trial began in central west New South Wales of Everyday Rewards, a Woolworths shopping card that automatically tracks supermarket purchases and stores fuel discount entitlements, thus eliminating the need for shoppers to retain paper coupons previously used for this purpose.[13] In addition it allows Woolworths to record purchases made by customers to offer them relevant promotions and for studies in demographics and marketing,[14] hence incentives for customers who register their details. This followed Woolworths' announcement that it was planning to launch a general purpose credit card in 2008.[15] Woolworths is expected to offer these credit cardholders reward vouchers redeemable throughout its store network.[16] Woolworths subsequently announced that the Woolworths Everyday Money MasterCard would be launched on 26 August 2008 and allows customers to earn shopping cards redeemable at Woolworths group retailers.[17][18]

In February 2008, Woolworths announced that following the NSW trial, its Everyday Rewards card would be rolled out nationally, beginning with South Australia and Northern Territory in mid-February, and to other states (excluding Tasmania[19]) by the end of May 2008. During the NSW trial, 50,000 cards were issued to customers.[20]

Woolworths stated in June 2008 that "well over a million" shoppers had taken a card and registered their details.[21] In August 2008, Woolworths stated that there were 3.8 million cards on issue, with 2.4 million cards registered.[22]

From June 2009, Everyday Rewards cardholders were able to earn Qantas Frequent Flyer points, by using their Everyday Rewards cards. Cardholders who had successfully linked their Frequent Flyer card to their registered Everyday Rewards card can earn one Frequent Flyer point for every dollar over $30 that they spent in store. In August 2009, Woolworths announced that there were 3.8 million cards registered, of which 1.2 million were linked to a Qantas Frequent Flyer account.[23] On 26 October 2015 Woolworths announced that, from 1 January 2016, customer loyalty cards would no longer earn Qantas Frequent Flyer points. Instead they will receive more discounts on groceries. The new discount program came into effect on 28 October 2015. Everyday Rewards cardholders will be sent 'Woolworths Rewards' cards.[24]

Frequent Shopper Club

The Frequent Shopper Club, or F$C, is a reward program for shopping in Woolworths stores in Tasmania. It was started by Purity Supermarkets in 1992. It is still in use today.[25]

The program offers a $20 voucher for every 2000 points accrued. The program offers no online access or signup.

Private label brands

Woolworths has four levels of generic or private label brands:

A budget label covering everyday household products and groceries. Easily recognisable due to its plain white and red accented packaging.[26]

A premium brand with a range of products including food shampoo, dog food and potato chips. All products come quality assured. Was previously the self-branded "Woolworths" product line.[27]

Woolworths' Gold range must meet two out of their three criteria for them to label the item as a Woolworths' Gold product.

A range of products tested against strict criteria and endorsed and approved by Woolworths experts. This range includes products under the names of Emily's Kitchen, Fresh Soups and Yummy Meals.[28]

A range of products for families with specific requirements such as gluten free diets, vegetarian foods and organic foods. Salt, sugar and fat levels have been decreased in this range. This range also provides products that are certified organic, which supports biodiversity and nurtures the land.[29]

Other Woolworths Limited supermarkets

A Woolworths supermarket in Wagga Wagga, New South Wales

References

  1. 1 2 "Woolworths Supermarkets". Woolworths Limited. Retrieved 30 March 2016.
  2. ↑ "Gandel and Colonial Open $140 Million Wing of Chadstone Shopping Centre". Retrieved 2009-02-05.
  3. ↑ Zappone, Chris (9 November 2009). "Supermarket duopoly blamed for soaring food prices". The Sydney Morning Herald. Retrieved 29 July 2013.
  4. ↑ McGregor, Ken (27 March 2012). "Senator Nick Xenophon moves to smash Coles and Woolworths duopoly". The Advertiser. Retrieved 29 July 2013.
  5. ↑ Greenblat, Eli (16 July 2013). "Lion boss adjusts to supermarket duopoly". The Age. Retrieved 29 July 2013.
  6. ↑ "Woolworths Supermarkets". woolworthslimited.com.au. Retrieved 29 June 2015.
  7. ↑ "Our Story – 1924 September". Woolworths Limited. Retrieved 10 June 2013.
  8. ↑ "Our Story – 1924 December". Woolworths Limited. Retrieved 10 June 2013.
  9. ↑ "Our Story – 1926 Printing Cash Registers". Woolworths Limited. Retrieved 10 June 2013.
  10. ↑ "Our Story – 1940 Woolworths Expands to Tasmania". Woolworths Limited. Retrieved 10 June 2013.
  11. ↑ "Our Story – 1985 Safeway". Woolworths Limited. Retrieved 10 June 2013.
  12. ↑ employee knownlege/personal experience
  13. ↑ Fuel change on the cards, Australian Financial Review, 6 September 2007, p. 20
  14. ↑ "Everyday Rewards Customer Charter". Woolworths Everyday Rewards. Retrieved 2008-08-23.
  15. ↑ "Now it's Woolworths the credit card people". Sydney Morning Herald. 27 August 2007. Retrieved 2007-09-06.
  16. ↑ Retailers take on the banks…again, Australian Financial Review, 30 January 2008, pp. 1, 61
  17. ↑ "Woolworths launches new credit card". news.com.au. 2008-08-18. Retrieved 2008-08-18.
  18. ↑ "Woolies MasterCard debuts in two weeks". The Sheet. 2008-08-15. Archived from the original on 14 August 2008. Retrieved 2008-08-18.
  19. ↑ "Everyday Rewards terms and conditions". Woolworths. Retrieved 2009-01-29.
  20. ↑ Woolies revs up discount petrol war, Australian Financial Review, 11 February 2008, pp. 1, 15
  21. ↑ "Fuel's gold as a million people play cards with Woolworths". Sydney Morning Herald. 5 June 2008. Retrieved 2008-06-05.
  22. ↑ "Full Year Results Presentation" (PDF). Woolworths Limited. Retrieved 2008-08-29.
  23. ↑ "Full Year Results Presentation" (PDF). Woolworths Limited. Retrieved 1 March 2016.
  24. ↑ Croy, Liam (26 October 2015). "Woolies dumps flyer points". The West Australian. Retrieved 30 October 2015 – via au.news.yahoo.com. ... shoppers will no longer earn frequent flyer points on their loyalty cards. Instead, they will earn credits averaging 15 per cent of the price of about 500 products marked with orange tickets at participating Woolworths supermarkets and BWS liquor stores. When the value of the credits reaches $10, customers will receive $10 off their next grocery or liquor bill.
  25. ↑ http://www.themercury.com.au/article/2009/07/18/85321_tasmania-news.html
  26. ↑ "Woolworths Homebrand". Woolworths Supermarkets. Retrieved 19 April 2013.
  27. ↑ "Woolworths Select". Woolworths Supermarkets. Retrieved 19 April 2013.
  28. ↑ "Woolworths Fresh". Retrieved 19 April 2013.
  29. ↑ "Macro Wholefoods Market". Retrieved 19 April 2013.
  30. ↑ "Woolworths to launch new grocery chain". Inside Retailing. 13 December 2007. Retrieved 2007-12-19.

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