Two Big Investment Groups Team Up To Bid For Big W
While no formal bid has been made Fairfax Media are tipping that an offer is being formalised.
The Carlyle Group who has been tipped as a potential acquirer of Big W denied its involvement.
The two most pressing issues for the Woolworths board who are believed to have been in talks with Roger Corbett the former Fairfax Chairman and Woolworths CEO are the performance of the retail giant’s hardware chain Masters (a joint venture with United States-based retailer Lowe’s) and its discount department store chain Big W.
The latter has been beset by a number of problems including sliding market share and the bungled roll-out of a logistics platform.
The poor performance of Big W was again highlighted by the quarterly sales results of Woolworths and Wesfarmers.
While Wesfarmers’ discount department stores delivered strong same-store sales – the Kmart chain delivered growth of 8.6 per cent, and Target 3.2 per cent – same store sales at Big W were down 8.1 per cent and total sales were down 7.9 per cent.
Woolworths’ share price has fallen more than 20 per cent since the start of the year as concerns have grown up its ability to compete with rival Coles (owned by conglomerate Wesfarmers) and its loss making ventures.