Woolworths Supermarkets

Woolworths (colloquially "Woolies") is an Australian chain of supermarkets and grocery stores owned by Woolworths Group. Founded in 1924, Woolworths along with Coles forms a near-duopoly of Australian supermarkets, accounting for about 80% of the Australian market.[2][3][4]

Woolworths Supermarkets

Woolworths Logo since 2015
A Woolworths store in Western Sydney
Trade name	Woolworths
Type	Subsidiary
Industry	Retail
Founded	22 September 1924 (1924-09-22)
Headquarters	Bella Vista, New South Wales , Australia
Number of locations	1,024[1]
Key people	Brad Banducci – CEO, Woolworths Group Paul Graham – Managing Director Supply Chain Claire Peters – Managing Director Stores, Woolworths Supermarkets[1]
Revenue	A$60.568 billion (2019)[1]
Owner	Woolworths Limited
Number of employees	225,000[1]
Parent	Woolworths Group
Website	www.woolworths.com.au

A Woolworths Store in 1951 on Sydney Road, Manly

The Woolworths supermarkets logo, used from 1987 until early 2009

Woolworths specialises in groceries (vegetables, fruit, meat, packaged foods, etc.), but also sells magazines, DVDs, health and beauty products, household products, pet and baby supplies, and stationery. As of August 2019, there were 981 Woolworths supermarkets and 43 Woolworths Metro convenience stores.[1] Woolworths Online (formerly HomeShop) is a "click and collect" and home delivery service for Woolworths supermarkets.

History

See also: Woolworths Group (Australia) § History

Woolworths Limited (now Woolworths Group) was founded on 22 September 1924 by five Australian entrepreneurs – Percy Christmas, Stanley Chatterton, Cecil Scott Waine, George Creed and Ernest Williams.[5] The first store was opened on 5 December 1924 in Pitt Street of Sydney's Imperial Arcade, called "Woolworths Stupendous Bargain Basement".[6] Following the first store there were only 29 shareholders and there was little interest 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 lowest prices as well as money back guarantees.[7] 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.[8]

The second Woolworths supermarket was opened on 6 August 1927, on Queen Street in Brisbane.[9] The first Woolworths store in New Zealand was opened in 1929, but the chain has since been rebranded as Countdown (see also Woolworths (New Zealand). Following the opening of the Hobart store in 1940, Woolworths had a store in every state in Australia.[10]

With the company and its stores running successfully, Woolworths began to experiment with expanding their grocery range – more stores began stocking fresh fruits and vegetables and a larger range of food. The first self-service store in Beverly Hills, Sydney was opened in 1955.[9] As Woolworths gradually focused more on groceries, the first Big W department store was opened in 1976 at Tamworth, New South Wales.

In 2018, Woolworths Group made a historical decision to ban single-use plastic bags during checkout, along with Coles.[11] In the first three months following the ban, Australian's plastic bag use dropped by 80%, leading to 1.5 billion fewer bags going to landfill.[12] Woolworths also committed to removing 180 tonnes of plastic packaging from their products in 2018.[13]

Acquisitions

In 1982, Woolworths Limited acquired two Tasmanian grocery brands: Roelf Vos and Purity, which were converted into Woolworths stores in 2000.

After the arrival of American supermarket giant Safeway Inc. in Australia in 1962, Australian Safeway Pty Ltd was bought by Woolworths in 1985 (see also Safeway (Australia) § Acquisition by Woolworths). Woolworths Limited acquired all of the Safeway stores and the naming rights in exchange for a 19.99% equity interest in Woolworths Limited.[14] At the time of the acquisition, Safeway had 126 stores across Victoria, Queensland and New South Wales.[15] All Safeway stores in Queensland and New South Wales were rebranded as Woolworths supermarkets, but most Victorian stores continued trading as Safeway.[16] In 2008, Woolworths announced it would rebrand Safeway stores as Woolworths, and this process was completed in June 2017.[17]

Slogan

In 1987, Woolworths launched the "Fresh Food People" campaign after implementing new company protocols for their fresh food departments.[9] The slogan changed slightly in 2012 to "Australia's Fresh Food People" to promote the fact that 96% of fresh produce sold in Woolworths supermarkets is grown in Australia.[18] In 2014 the original "The Fresh Food People" slogan returned with a new lineup of television commercials.

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, rewarded for purchases over certain amounts.

Woolworths Rewards and credit card

In September 2007, Woolworths began a trial in central-west New South Wales of Everyday Rewards, a Woolworths shopping card that automatically tracks supermarket purchases and fuel discounts, thus eliminating the need for shoppers to retain paper coupons.[19] In addition it allows Woolworths to record purchases made by customers to offer them relevant promotions and for studies in demographics and marketing,[20] 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.[21] Woolworths offered these credit card holders reward vouchers redeemable throughout its store network.[22] Woolworths subsequently announced that the Woolworths Everyday Money MasterCard would be launched on 26 August 2008, allowing customers to earn shopping cards redeemable at Woolworths Group retailers.[23][24]

In February 2008, following the New South Wales trial, Woolworths announced that its Everyday Rewards card would be rolled out nationally. The implementation began with South Australia and Northern Territory in mid-February 2008, and to other states (excluding Tasmania)[25] by the end of May 2008. During the NSW trial, 50,000 cards were issued to customers.[26]

Woolworths stated in June 2008 that "well over a million" shoppers had taken a card and registered their details.[27] In August 2008, there were 3.8 million cards on issue, with 2.4 million cards registered.[28]

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.[29] On 26 October 2015, Woolworths announced that customer loyalty cards would no longer earn Qantas Frequent Flyer points from 1 January 2016, instead receiving more discounts on groceries. The new discount program came into effect on 28 October 2015. Everyday Rewards cardholders were be sent new Woolworths Rewards cards.[30]

On 31 August 2016, Woolworths made significant changes to the rewards program in response to customer feedback. Cardholders are able to earn 1 point per $1 spent on eligible products at Woolworths Supermarkets and Caltex Woolworths branded fuel outlets. When 2000 points have been accrued, a $10 discount can be applied to their next eligible transaction in Woolworths Supermarkets.[31] Customers were also given the choice to "bank" their discounts until Christmas time, with the discounts able to be spent from 1 December until 1 January each year.[32] Woolworths also reintroduced the ability to earn Qantas Frequent Flyer points when customers use their Rewards card. When 2,000 points have been accrued, instead of receiving a $10 discount, those points can be periodically converted to Frequent Flyer points at a rate of 43.5 Frequent Flyer points per 100 Woolworths Rewards points.[31]

Frequent Shopper Club

The Frequent Shopper Club, stylised as F$C, is a reward program for shopping in Woolworths stores in Tasmania. It was started by Purity Supermarkets in 1992, and is still in use today.[33]

The program offers a $20 voucher for every 2000 points accrued. As of November 2017, Woolworths launched a basic website for the Frequent Shopper Club.

In July 2020, Woolworths announced that the program would be folded into the Everyday rewards program.

Private label brands

Woolworths has a range of generic or private label brands:

• Essentials

A budget label covering everyday household products and groceries. Products within this range typically feature a red and white Woolworths logo on the top left corner on the front side of the packaging.[34]

• Woolworths Food Range

Woolworths' most populous own brand range, it features food lines in all categories across the store. Products in this range feature a green and white logo. Customer can become part of a food sampling group called "Bunch" in order to test foods within this range and provide feedback to make improvements.[35]

• Gold

This own brand features premium products which are usually only available around Christmas time, and include products such as Christmas puddings, fruit mince pies and cakes.[36]

• Macro Wholefoods Market

Macro features a range of foods that are free from artificial sweeteners, colours, flavours, added MSG and hydrogenated oils. Many products in this range are promoted as organic foods.[37]

• Delicious Nutritious

This range is a collaboration between Woolworths and Australian personal trainer Michelle Bridges. The range is exclusively chilled and frozen meals, all of which include 2–3 serves of vegetables, grains and protein, and are all under 450 calories per serve.[38]

• The Odd Bunch

This is a fresh produce brand which features fruit and vegetables, such as carrots, lemons and apples, that are oddly shaped or are otherwise imperfect. These products are sold at a cheaper price as a compromise to this.[39]

Other Woolworths Limited supermarkets

• Countdown is the trading name in New Zealand. Woolworths also operated supermarket brands Foodtown and Woolworths until November 2011, which were rebranded as Countdown.
• Flemings was a chain of supermarkets in Sydney and the Central Coast. On 19 May 2020, the final store in Jannali closed and was replaced with a Woolworths Metro store.[40]
• Woolworths Metro is a chain of convenience stores launched in 2013. The first store opened in Sydney, and the chain now has over 40 stores across Australia. Three of them are former Thomas Dux Grocer stores, while others are mostly placed within central business districts.
• Food For Less was a discount supermarket chain located in Queensland and New South Wales. Since 2010 stores were either closed or rebranded to Woolworths, with the last store rebranded in 2018.
• Safeway was the trading name of Woolworths for most of their Victorian stores until 2017 (see § Acquisitions).
• Thomas Dux Grocer was launched in 2008 in two New South Wales locations. The stores had a larger fresh food offering than traditional Woolworths stores, along with a larger delicatessen section.[41] At its peak the chain had 11 stores. From 2014, the stores gradually closed and the chain ceased operation in late 2017. Three of the stores were retained under the "Woolworths Metro" brand; the other seven were either closed entirely or sold to other businesses.
• Caltex Safeway operated service stations in Victoria until it was converted to Caltex Woolworths (now owned by Euro Garages Australia) in 2008–2010.
• Roelf Vos and Purity were trading names used in Tasmania prior to being rebranded as Woolworths in 2000.

Gallery

• 
  A Woolworths and Woolworths Liquor supermarket in Wagga Wagga, New South Wales
• 
  Former Safeway and Safeway Liquor sign at Pacific Epping Shopping Centre in Epping, Victoria
• 
  Melbourne's first newly branded Woolworths and Woolworths Liquor supermarket in Chadstone, Victoria[42]
• 
  A Woolworths store in Baxter
• 
  A Woolworths store using its current branding

Controversies

2020 spam marketing controversy

In July 2020, Woolworths were found guilty of breaching spam laws in excess of 5 million times and ignoring repeated consumer requests to unsubscribe from its marketing mailing lists.[43]

The Australian Communications and Media Authority found the supermarket giant had unlawfully spammed more than 1.2 million customers between October 2018 and July 2019.[43] The supermarket was found to have repeatedly ignored consumers who had tried to prevent marketing emails being sent to their inboxes and had not attempted to improve its behaviour; despite the AMCA notifying the company that they had received customer complaints.[43]

ACMA chairman Nerida O'Loughlin said of the violation:

"The spam rules have been in place for 17 years and Woolworths is a large and sophisticated organisation. The scale and prolonged nature of the non-compliance is inexcusable."[43]

The Sydney Morning Herald noted that the infringement notice of $1,003,800 is the biggest fine the AMCA has issued to date.[43]

References

1. "2019 Annual Report" (PDF). Woolworths Group Limited. August 2019. Retrieved 10 December 2019.
2. Zappone, Chris (9 November 2009). "Supermarket duopoly blamed for soaring food prices". The Sydney Morning Herald. Retrieved 29 July 2013.
3. McGregor, Ken (26 March 2012). "Senator moves to smash duopoly". The Advertiser. Retrieved 10 December 2019.
4. Greenblat, Eli (16 July 2013). "Lion boss adjusts to supermarket duopoly". The Age. Retrieved 29 July 2013.
5. Davidson, Grant (30 April 2018). "The inspiration behind 10 of Australia's iconic brand names". Davidson Branding. Retrieved 10 December 2019.
6. "Our Story: 1924 September". Woolworths Supermarkets. Archived from the original on 5 September 2015. Retrieved 10 December 2019.
7. "Our Story: 1924 December". Woolworths Supermarkets. Archived from the original on 11 July 2015. Retrieved 10 December 2019.
8. "Our Story: 1926 Printing Cash Registers". Woolworths Supermarkets. Archived from the original on 27 March 2015. Retrieved 10 December 2019.
9. "Our History: The Woolworths Story". Woolworths Group. Retrieved 11 December 2019.
10. "Our Story: 1940 Woolworths Expands to Tasmania". Woolworths Supermarkets. Archived from the original on 30 March 2015. Retrieved 10 December 2019.
11. "Woolworths brings forward plastic bag ban". SBS News. 4 April 2018. Retrieved 4 December 2018.
12. Khalil, Shireen (4 December 2018). "We have saved 1.5 billion plastic bags from landfill". News Maili. Retrieved 4 December 2018.
13. Woolworths Group (1 August 2018). "2018 Annual Report" (PDF). Retrieved 11 December 2019.
14. O'Connell, Jan. "1985 Woolworths buys Safeway". Australian Food History Timeline. Retrieved 10 December 2019.
15. Prevor, Jim (2 November 2007). "How Woolworths Started & Grew" (PDF). Perishable Pundit. p. 31. Retrieved 10 December 2019.
16. "Our Story". Woolworths Supermarkets. Archived from the original on 13 September 2008. Retrieved 10 December 2019.
17. Powell, Dominic (6 June 2017). "Last Safeway shuts up shop... GDP growth at 0.3%... Kogan has plans for NBN market". SmartCompany. Retrieved 10 December 2019.
18. "Woolworths unveils fresh 'fresh food' campaign". Inside Retail. Retrieved 27 May 2019.
19. "Fuel change on the cards". Australian Financial Review. 6 September 2007. p. 20.
20. "Everyday Rewards Customer Charter". Woolworths Everyday Rewards. Woolworths Everyday Rewards. Archived from the original on 19 July 2008. Retrieved 23 August 2008.
21. Carson, Vanda (27 August 2007). "Now it's Woolworths the credit card people". The Sydney Morning Herald. Retrieved 6 June 2007.
22. "Retailers take on the banks…again". Australian Financial Review. 30 January 2008. pp. 1, 61.
23. "Woolworths launches new credit card". news.com.au. 18 August 2008. Retrieved 18 August 2008.
24. "Woolies MasterCard debuts in two weeks". The Sheet. 15 August 2008. Archived from the original on 14 August 2008. Retrieved 18 August 2008.
25. "Everyday Rewards terms and conditions". Woolworths. Archived from the original on 20 February 2011. Retrieved 29 January 2009. |section= ignored (help)
26. "Woolies revs up discount petrol war". Australian Financial Review. 11 February 2008. pp. 1, 15.
27. "Fuel's gold as a million people play cards with Woolworths". The Sydney Morning Herald. 5 June 2008. Archived from the original on 20 April 2009. Retrieved 5 June 2008.
28. "Company Results: Full Year ended 29 June 2008" (PDF). Woolworths Limited. Retrieved 29 August 2008.
29. "Company Results: Full Year ended 28 June 2009" (PDF). Woolworths Limited. Retrieved 1 March 2016.
30. Croy, Liam (26 October 2015). "Woolies dumps flyer points". The West Australian. Retrieved 30 October 2015 – via Yahoo News. ... 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.
31. "Significant Improvements to Woolworths Rewards". Woolworths Group. 22 August 2016. Retrieved 27 May 2019.
32. "Help & FAQs". Woolworths Rewards. Archived from the original on 15 January 2019. Retrieved 27 May 2019.
33. Smith, Linda (18 July 2009). "Tassie misses rewards". The Mercury. Archived from the original on 6 March 2012. Retrieved 11 December 2019.
34. "Essentials". Woolworths Supermarkets. Retrieved 27 May 2019.
35. "Woolworths Food Range". Woolworths Supermarkets. Retrieved 27 May 2019.
36. "Gold". Woolworths Supermarkets. Retrieved 27 May 2019.
37. "Macro Wholefoods Market". Woolworths Supermarkets. Retrieved 27 May 2019.
38. "Delicious Nutritious". Woolworths Supermarkets. Retrieved 27 May 2019.
39. "The Odd Bunch". Woolworths Supermarkets. Retrieved 27 May 2019.
40. Trembath, Murray (8 May 2020). "Farewell Flemings | Jannali grocery store last to close". St George & Sutherland Shire Leader. Retrieved 19 May 2020.
41. "Woolworths to launch new grocery chain". Inside Retailing. 13 December 2007. Archived from the original on 20 April 2009. Retrieved 19 December 2007.
42. "Gandel and Colonial Open $140 Million Wing of Chadstone Shopping Centre". Archived from the original on 25 January 2009. Retrieved 5 February 2009.
43. Mills Turbet, Hanna (1 July 2020). "Woolworths hit with record $1 million fine for spamming customers". The Sydney Morning Herald. Retrieved 2 July 2020.

External links

• Official website