EXCLUSIVE: Big W Brief Suppliers On Restructure CE To Be Key Category
BigW the Woolworths owned mass retailer who is struggling to find their place in the market has briefed suppliers on their future direction with toys, kids clothing, home, and leisure as well as clothing for “both him and her” set to be a key focus.
According to consumer electronics suppliers the big retailer has been making “excellent” headway with suppliers to the mass retailer reporting increased sales of consumer electronics goods.
At a briefing to a select group of suppliers this week Brad Banducci the CEO of Woolworths and David Walker the new Managing Director of BigW spelt out a new direction for the Company aimed at recovering lost market share, according to a leaked presentation.
The audience were told that the core category for the retailer is set to be About Home’ projected revenues are $12.8b, men’s and women’s clothing is expected to generate $12.1B while ‘About Leisure’ which is a category for “Off Duty Adventurers” is set to generate $8B.
An additional $5b is set to be generated selling “Every Day Needs’ while kids toys and clothing is set to generate $4.4B.
Recently BigW halved its advertising expenditure according to AQX Fusion data that shows in the year to early April 2017, Big W spent just $9.87 million on national advertising.
For the year to early April 2016, it spent $22.5 million.
Big W recently posted a 6.1 per cent fall in quarterly sales, to $757 million, and flagged a deeper loss this half of between $115 and $135 million.
In their Supplier Business Update the Company said that ‘Price’ and ‘Product’ were key to the Companies success and that “Through lower prices without compromising on quality” and being able to deliver “The right products and Smart everyday solutions” for Australians the retailer believes that they can turn their business slump around.
Woolworths and Big W management told the audience that new research conducted by the retailer indicated that the retailer “was on track” and that if they can regain trust in their pricing strategy and can deliver the right products while improving basic execution in their stores that have a chance of recovering their position.
The Company said that their House brand products need “To be good” as a result they are l0ooking to suppliers in the consumer electronics market to improve the quality of their goods.