Woolworths kills off Homebrand

by:Beauty Spirit     2020-08-10
Woolworth has given up its long term.
Run more home brand labels
Market elements to improve views on its private label series in the fight against Coles and Aldi.
Say goodbye to Homebrand
Source: News Ltd has given up its long term
Run more home brand labels
Market elements to improve views on its private label series in the fight against Coles and Aldi.
This change will affect nearly 1000 products. and-
White home brand series-
Launched in 1983-
From pasta, sugar to insect spray, AFR reports.
The Woolworth home brand has annual sales of about $1. 4 billion.
A Woolworth spokesman confirmed the change.
\"We have been reviewing products within our own brand to ensure that we deliver greater quality and value to our customers,\" he told news . \". com. au.
\"Part of this review will see our current range of values, home brands and essentials, integrated into an improved range of values called Essentials.
As the name suggests, the range of necessities is a product that every family needs food and non-foodfood.
\"When customers see that each product is transferred to the new necessities package, they can rest assured that the product will provide the market --
Bring the best value for money to our customers.
Earlier this month, Woolworths said it was reviewing its entire range of private labels, but stressed that while we did not increase the number of self-owned label products on the shelves, but customers \"buy more of their own labels than ever \".
Before that, Coles announced that it would remove some of its long-standing home brand labels, such as Smart Buy and Less, and replace them with a unique red ribbon.
Brad Banducci, president of Woolworths.
Source: Australian News Corp. (News Corp. ), an analysis by Tom Kierath and Monique Rooney, retail analyst at Morgan Stanley, found that Woolworth\'s private label pricing
\"According to our private label basket, the average price reduction for Woolworths is 4.
\"Compared to May 2015, when we last completed this analysis, this ratio was 6,\" they wrote . \".
\"Coles, however, also reduced the price by 4.
Press 1 for 6% and Aldi.
The change is relatively small.
They added that the range of pricing tags for Woolworths \"is still stuck\", Select is seen as too expensive and home brand is seen as too lowquality.
\"Aldi is still 18 cents cheaper than Select and 7 cents cheaper than the Coles brand, while the price difference between the brand products sold by Coles and Woolworths is still 30 to 40 cents, they wrote: \"This has further enhanced Aldi\'s price perception. \".
Morgan Stanley said industry feedback showed that Woolworth\'s sales performance in 2016 had slowed as the migration to Coles accelerated.
Analysts expect food and alcohol sales to drop by 2 percentage points in the second quarter, compared with a 1 percentage point drop in the first quarter.
\"Continuous high/medium
\"Management turnover seems to be the main driver of Woolworth\'s recent weakness,\" they wrote . \".
Earlier this month, market research firm Canstar said the customer survey showed that the competition between Coles\'s own brand and Aldi has progressed, but Woolworths are still struggling.
According to market research firm IBISWorld, private label brands account for about all food and grocery sales, which the company expects to grow to 35 by 202021. frank. chung@news. com.
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