Wandeli Loubser 15301648
BACKGROUND OF WOOLWORTHS
Woolworths began life in what had been the dining room of the old Royal Hotel in Cape Town on a sunny October morning in 1931 as a clothing store and was founded by Max Sonnenberg.
In 1934 Woolworths opened a second branch in Durban, followed in 1935 by branches in Port Elizabeth and Johannesburg. Shareholders who bought Woolworths stock in 1936 at 75c a share would have seen that stock grow to many, many times its original price as the Woolworths brand has become an entrenched icon in South African retail. Since 1936 the product range had expanded from clothing and shoes to include food, cosmetics, gift items, accessories, mobile phones, an extensive range of linen and home ware.
Since its inception 74 years ago, the Woolworths brand has become synonymous with innovation, quality and value for money. With their wide appeal, Woolworths goods are now sold at 149 corporate stores, 51 international franchise stores throughout the rest of Africa and the Middle East and 69 South African franchise stores nationwide.
TARGET MARKET
Woolworths targets customers between LSM groups 6-10 and focus more on the “30 and thriving” age group. They also cater for younger groups and have children’s’, teenagers wear, but their merchandise focus more closely on the specific group previously mentioned – male and female.
FINANCIAL POSITION AND RATIOS
Woolworths Holdings is one of the top 100 companies listed on the JSE and, as a leading South African company, is committed to growth through responsible retail. Complementing this focus is a commitment to and passion for achieving and maintaining the highest standards throughout the business.
SOME OF THE CURRENT FINANCIAL RATIOS ARE: Return on Assets
Industry Comparison 10.34%
This shows us that Woolworths uses sufficient assets to generate earnings. 10% is better than the previous year, but they should work on using their assets more