Woolies eats up market share whilst DJ drags performance
The more things change, the more they stay the same. Woolies announced its half-year results to 31 December 2020, with many of the thrills and spills of previous results announcements taking centre stage. The group’s crown jewel, Woolworths food, continues to flourish and eat up market share from competitors. This is mainly as a result of a mix of innovation and convenience, leading to this division being an industry leader. David Jones continues to be a drag on performance, with discretionary fashion spend subdued due to the economic effects of the pandemic and ensuing lockdowns. If Roy Bagattini, Woolworths CEO and ex-Levi Strauss & Co. boss can turn the tide on the high-margin clothing business, Woolworths is well positioned to benefit given the out performance of its food division.