Investor Presentaiton
14
15
Delivering value
for all of our
stakeholders
Customers
Customers are at the heart of our strategy; by continuing to create better
shopping experiences, we want more Australians and New Zealanders
to choose Woolworths Group for all of their food and everyday needs.
Better value for money
Customer feedback in F23 was clear - our customers
wanted better value for money as household budgets.
increasingly came under pressure from inflation. We know
value can mean different things to different people.
Across our Food businesses, Everyday Rewards platform
and BIG W, we provided many ways to help our customers
find better value for their individual needs.
For better value across Food, Woolworths Supermarkets
introduced a Price Freeze on 200 grocery essentials for
six months in the lead up to Christmas in 2022. We also
delivered four seasonal and a Christmas Prices Dropped
campaign, more than 3,000 products on our Low Price
you can Rely On range and maintained over 6,000 weekly
specials. Our Own and Exclusive Brands play a key role in
providing value for our customers including a wide range
of Own Brand products that retail at an average price of less
than 30% below the branded equivalents. In addition, price
increases across our own brands in F23 were materially
below overall store inflation.
Our loyalty program, Everyday Rewards, delivers hundreds
of millions in savings to members every year through
access to personalised offers on the items they regularly
buy. Members also have the opportunity to boost points
on selected items to unlock more savings for their next
shop or to bank their savings to spend at Christmas.
Our subscription offer, Everyday Extra, moved from pilot to
roll out in F23, with subscribers saving approximately $300
extra for the year. In August 2023, we launched Member
Pricing to provide our members with even greater value.
In BIG W, two new own brands, Openook in Home, and
Somersault in Toys, were launched with over 1,000 new
products to offer more affordable choices for customers.
BIG W also provided value for customers during key
seasonal events in the year, such as Christmas, Easter,
and Mother's Day.
Supporting our most vulnerable communities is especially
critical in this environment, particularly to help address
food insecurity. We donated over 17,000 tonnes to our
food rescue partners in F23, which is the equivalent of
approximately 34 million meals as we work towards our
goal to reduce hunger and food waste as part of our
Sustainability Plan 2025.
Better customer shopping experiences
Customers' behaviours increasingly returned to pre-COVID
habits during the year, including more frequent visits to our
stores as customer mobility improved. We continued to invest in
our supermarkets, opening 22 in the year and renewing a further
55 across Australia and New Zealand to deliver better and more
curated experiences for each of our communities. The curation
is achieved through the segmentation of stores into Value,
Core and UP, with a store's features based on the needs of the
local community. We also tested and learnt from a number
of store upgrades in the year, including enhanced front of
store layouts for a better customer experience through the
conversion of express lanes into additional assisted checkouts,
expansion of the assisted checkout area for larger trolleys,
and a centralised service desk to easily access team support.
In F23, BIG W updated its latest store blueprint with a focus
on a new customer-led in store experience, opening one new
store with two renewals completed in the year. BIG W's Kawana
Waters store in Queensland was relaunched in May 2023 using
the latest blueprint including new service navigational anchors,
an enhanced layby and pick up area and team space; as well
as an upgraded Direct to boot offer.
We continue to review the accessibility of our stores and have
introduced measures such as a low-sensory quiet hour in over
900 Australian supermarkets to reduce anxiety and sensory
stress for customers with specific needs, including autism.
We will do more in F24 to make our stores accessible for all.
During the year we saw a rapid increase in the demand for our
convenient online shopping propositions, particularly for express
delivery options such as Same Day and On-Demand delivery
within the hour. To support this, we continued to enhance our
infrastructure such as Direct to boot with a further 81 stores in F23
and made changes to our Woolworths and Everyday Rewards
apps and websites to make it easier for our customers to shop
online. To provide additional capacity to meet demand, we also
opened CFCs in Caringbah, NSW and Rochedale, Qld, bringing
the total number of Australian CFCs to seven at the end of F23.
Growing B2B
Woolworths Group's customers
also include business and wholesale
customers in Australia and New
Zealand. In Australian B2B, F23
sales increased by 17.4%, driven
by strong sales growth in PFD Food
Services due to higher demand
from its customers as the consumer
environment normalised and new
customer acquisition. PC+, our
B2B supply chain business, also
performed strongly in F23 driven
by strong growth in primary freight
services as well as the establishment
of offshore consolidation capabilities
in India. Looking ahead, we will
continue to grow and optimise
our B2B offer under the banner
of Woolworths Food Company in our
connected Group. This will include
growing PFD and Australian Grocery
Wholesalers' customer base through
exceptional customer service and
own brand opportunities.
Enjoy Low
Prices on
Australia's
healthiest
own brands
AFoodswitch: State of the
Food Supply report (2022)
Rolled
Tomato
Paste
Australia
Beer Batt
Steakhouse
2 PIZZA
BASES
The Cra
Annual Report 2023
Woolworths Group
1
highlights
Performance
2
review
Business
3
Directors'
Report
EMICAL
4
bft
DWICH
LOW
PRICE
Healthiest Own Brand
In December 2022, Woolworths
Supermarkets' Own Brand range
was ranked the healthiest of the four
major Australian retailers for the
fourth year in a row, by The George
Institute for Global Health based
on Health Star Ratings.
For more information access
our 2023 Sustainability Report
Report
Financial
LO
Other
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