Woolworths is committed to strengthening its supply chain following a review of the business and after reporting a 3.1 per cent drop in group sales for the 25 weeks to 26 July 2008.
The review concluded that there is “considerable opportunity for the group to build a sustainable value retail proposition based primarily on its small to medium sized stores”.
The company also plans to enhance stock management by improving ordering, weeks of stock cover held and availability, which over time it believes will allow the retail business to become more focused on the new positioning.
Further details will be issued when the group releases its interim results in September.
In addition, the board is currently looking for a new CEO. Richard North, chairman, said: “The board of Woolworths is continuing the search for a new chief executive to take the group on to the next stage of its development.
“In the meantime we have begun the detailed work that needs to be carried out to rebuild the retail business around the core of more profitable small and medium sized stores.”