Well the share price certainly isn’t – at less than 10p, its one discount they weren’t bargaining for. When I first started in advertising, it was at McCann’s, and the first account I worked on was Woolworth. Yep, it was no fun at all. Then it was going through a major refocus and needed to get in shape having lost its way.
Many years later it’s back in the same old hole. No focus, no direction, a flagging brand and one with no definition or meaning to most consumers. When I visit my local one in Crouch End I usually leave with nothing. It’s full of tat. I’m not attracted to the ‘Worth It’ values brands (though the names good) because they look too cheap and you’d have to question their ethical source.
The only thing I do rate are the digital, radios they sell – I have bought 3 from them. Woolworth may still be one of the biggest retailers in sweets – hardly ethical in these health conscious time but what else? It must have lost out big time on music sales to the internet – once its most profitable product range. It’s format, look and approach now seem out dated. I couldn’t find one ethical product in their store. No attempt to win over the new consumer, even Argos have made the effort.
You have to question what planet the management are on - were they away on a conference when Stuart Rose announced Plan A? Currently they have over 800 stores and despite most of us visiting one at least once a year, annual profits are falling with the share price falling 70%. Not surprising that there’s a take over bid hovering around.
In desperation, and maybe too late, they’ve hired a new CEO, Steve Johnson (ex Focus DIY) to try and turn the place around. He has a tough challenge. Woolworth’s may simply had its day, despite the consumer’s affection for it and a credit crunch that could help it. Whatever Johnson does it’ll need to be revolutionary not evolutionary. And maybe a bit greener too.
Great site - check it out. www.greenwashingindex.com
CHRIS ARNOLD
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Member since: 03 Jun 2008
Last login: 19 Nov 2009
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