Margins on entertainment to blame 3.2 per cent sales plunge; EUK continuing to trade well
Sales in Woolworths stores have fallen 3.2 per cent for the 25 weeks to 26 July 2008, whilst EUK’s and Bertram’s sales were down one per cent over the same period last year.
The retailer stated that the fall in sales was due to the ‘continued strength of the entertainment market’, with a larger proportion of sales coming from lower margin CDs and DVDs as opposed to higher margin warm weather outdoor items.
The company also stated that despite falling sales ‘EUK continued to progress well,’ following major changes at the firm.
“Our EUK and 2e businesses are continuing to trade well,” said Woolworths Chairman Richard North. “The retail business, however, has seen a marked worsening of conditions in June and July in an increasingly competitive market. This is reflected in the sales figures for the last six weeks. In addition, sales over the first half as a whole have been achieved with a disappointing margin performance.
"Looking ahead we remain cautious about the outlook for retail given the background of a weakening consumer economy. But we have strong operational management in place in all parts of the business who are working hard to ensure that the needs of all our customers - both wholesale and retail - continue to be met."
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Woolworths are currently in the process of selling four retail stores to Waitrose.
Comments
Put us out of our misery
please, please, please just go out of business!!
This slow painful death of woolworths is driving me insane.
Who shops in there???
Re: Put us out of our misery
it has a good pic and mix section though!!
Re: Re: Put us out of our misery
They only have themselves to blame for their retail business struggling. Their 'entertainment' sections are so lazy and uncompetitive when compared to anyone else's.
Last time I went in a Woolworths (which, to be fair, was actually a couple of years ago now I think of it), the store's small games section featured only a handful of the most mainstream games to appear over the last 12 months, all priced at £39.99. Even older ones discounted to about £25 everywhere else.
Pointless.
Re: Re: Re: Put us out of our misery
They are turning things around, they are on the search for a new CEO, they also have just completed a consultancy lead full review of both their high street and distibution arms.
For any indies on here that read this they are having a massive clear out in the EUK distribution arm and are heavily discounting alot of entertainment stock
Drop an email to Tim.Hornibrook@entuk.co.uk who is the Stock Disposal Exec, i believe from our last order their minimum order is £3000, but they do have pallet load over stocks and clearances
Re: Re: Re: Re: Put us out of our misery
Have to agree, Woolies or Wallys more like have to be one of the laziest retailers on the High St, however I should say this in their defence.
I bought my PS3 at Woolworths last August because they had the best deal on the High St at the time, PS3 60gb, Resistace, Motorstorm, 2nd controller, and two Blu Ray films, all for £379.00
This offer came in under the radar last August and by the time most people had heard about it, it was too late to order.
Re: Re: Re: Re: Re: Put us out of our misery
I once saw an old lady scoffing the pick n mix at her leisure! Most amusing!
As far as games go, it's beyond a joke and found the staff to be well behind the times! I no longer shop at wollies due to too many bad experiences and wasted time queuing for nothing!
An example would be displaying empty boxes giving the impression they have stock just to queue as any good Brit would then be informed at the till after some rummaging around by the attendant they have no stock though can deliver! Which contradicts the whole point for walking in a high street store? Had I wanted an item delivered I would have done so, and not with wollies online may I add!
Re: Re: Re: Re: Re: Re: Put us out of our misery
Woolworths smells funny anyway
Re: Re: Re: Re: Re: Re: Re: Put us out of our misery
jack of all trades and a master of none - except pic n mix it would seem!!!
If I want and particular item, and Woolies sell it, then I can think of 5 other destinations that would be higher up in my evoke set that Woolies. Only if the other 5 disappoint would I shop there.
Reckon this is true for most customers...
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