How we do business
We are strong supporters of competition
The Australian food retail sector is highly competitive, which is great news for you because competition helps keep prices low, creates greater choice and challenges retailers to deliver the best possible service.
Notes:
1. Excludes take-aways outlets and cafes/restaurants but includes fresh food specialties and fresh food markets.
2. Mass merchants are department stores and discount department stores.
3. Includes smaller foodstores and independent stores supplied by Metcash as well as larger supermarkets (IGA and Foodworks).
Source: Pitney Bowes MapInfo based on company reports and ABS sources including Household Expenditure, Australia National Accounts and Australia Retail Trade Services
How Woolworths buys fresh food
Fresh food is our business and we've made it our mission to establish direct, long-term relationships with the best farmers and growers in Australia.
In fact, more than 80% of Woolworths suppliers have been our partners for more than 10 years.
Sometimes we'll also buy small quantities of produce in the wholesale market so we can pass special offers on to you.
How much profit do we make
As a group, Woolworths Limited makes about five cents in the dollar before paying interest and tax. Our Net Operating Profit is about three cents in the dollar.
In recent years, we've been able to increase profit in the face of rising prices by becoming even more efficient – when you sell high volumes at low margins, efficiency becomes critically important.
Since 1999, we've been able to save $7.3 billion by revolutionising stock and transport management systems, allowing us to plough most of it back into the business to keep prices low and improve our stores.
Notes
1. Includes paying staff, running stores, energy, rent, IT etc.2. Earnings Before Interest and Tax.
Source: Woolworths Limited Annual Reports (2003–2007).
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