The issue Woolies has is that Big W is pretty much worth zero. They have no chance of selling it, and I doubt they’ll get the chance to offload it to a shady private equity business in the style of Dick Smith.
If they just decide to shutter it it’ll cost more then it cost them to shutter Masters. So they may as well hang onto it while it flounders until they work out what the best course of action is (even this seems to be taking forever!)
Steinhoff (Harris Scarfe, Best & Less, Freedom, Fantastic) was reportedly sniffing around Big W last year. Maybe they didn’t offer Woolworths enough cash.
Big W is not “worth zero”. They’ve had some difficult times but they can turn it around. There will always be a need to a discount department store. They just have to change and adapt. Mostly, they need good management that can help them make those changes.
They just have odd selections of stuff and a dead party areas that never has anyone in it. Poor decisions regarding stock mostly. Kmart gets by with stocking cheap crap, Big W needs to find a different need to fill.
Cheap, but on trend crap. In saying that, I’ve got a few Kmart homeware pieces that I’m very happy with.
Making so much of the trading floor dedicated to kids parties was an utterly bizarre idea.
I remember a few K-Mart stores doing this too 15+ years ago.
Oh, what are the details on this? Still going ahead, I thought the Whitfords one was over?
I absolutely hate discount department stores these days. Kmart’s stock consists almost exclusively of generic branded junk that won’t last more than 6 months in regular use. I think Big W is better, but their recent efforts are really, really bad. The newer renovated stores look incredibly sterile.
Big W at least has a wide variety name brands available, and that’s something that they’ve got going for them. They shouldn’t be going down the same path as Kmart by introducing more cheap unbranded junk to the shelves. I don’t know why they don’t bother trying to differentiate themselves in this regard - that’s their main point of difference over Kmart!
One reason I can see why Kmart is doing better is because the stores are considerably more accessible. You can usually access them within a short walk of the car park, while Big Ws are buried deep within the bellies of shopping centres. Kmart also have the advantage of being open considerably later in most cases - most Big Ws in Sydney tend to close at 7-8pm, and 6pm on weekends. What time do they think they’re operating in? The 1990s?
Agree!
Im not convinced that Woolworths can - Big W has been a basket case for some time now and the changes that have been made clearly haven’t worked
Big W need to focus on something other than “We Sell For Less”. Everyone sells for less - or claims to sell for less.
I love the comments on here about K Mart and the cheap s*** they sell. I would never buy a $49 microwave from K Mart. I would be too scared that it would heat up everything inside and outside or the unit.
Maybe Big W should focus on selling “Big Brands for Less” and not just electrical products but also clothing, homewares and bulk buy supermarket products.
What do we think about Target?
Once Australia’s biggest retail business & Coles Group (for much of 90s/2000s) > Wesfarmers (2007-2010) glowing gem!
Is it in a better or worse position than Big W? Or different altogether? Wesfarmers are comfident it’ll now see some growth/success this year.
Aren’t you meant to be on holiday?
You’re telling me you don’t think about Wesfarmers’ owned & operated businesses on your holidays?
When not thinking about the company dramas of Woolworths?
yeah agreed. good pod
target is the poor stepchild. there is no clear market segment for them anymore since they went downmarket. they used to be an upmarket Big W or Kmart. now there is almost nothing differentiating them except target still sells brand names (and thats changing as well in my experience)
if i wanted better quality stuff or name bands target used to be the place to go. not anymore now.
Big W can turn around if it focuses more on fashion and doesn’t cater to westie + regional towns who wear their garbage clothing. Make it modern and fashionable and you’ll see the returns.
Pretty sure they still are, just with a different structure/focus.
CEO of Wesfarmers Dept. Stores Guy Russo, showed a graphic at the AGM, showing Target’s market position (above Big W but below MYER).
I’d always found Target as the place to go for more quality/brands, but for cheaper prices.
i’m not sure. as a consumer (and a uni student studying marketing) i see Target chasing a market that is served by K-mart and Big W.
the branding is a mess now and the range of products is becoming more and more generic branded stuff.
i’m not sure what market segment they are after and it’s hurting the brand and causing confusion in the marketplace