Woolworth moots WA expansion

BUSINESS expansions plans by supermarket group Woolworth Limited could include additional outlets in WA.

The group, which has significant interests in discount department stores Big W and Dick Smith computer/electronic stores, plans to sell its Rockman’s women’s apparel chain and Chisholm manufacturing business to finance development.

In WA, the group has nine BigW stores, fifty-two supermarkets, seven Dick Smith stores, twenty-three liquor outlets and five petrol stations.

According to stockbroker Bell Securities Limited analysts, the group expects continued earnings growth from expansion of supermarket outlets, refurbishment of existing outlets and extension of retail trading hours.

Woolworth chief executive Roger Corbett said the group was confident of expansion with full year sales growth and an increase in profits.

Benefits will also accrue from expansion of petrol retailing and wholesale distribution, with potential medium-term benefits from an extension of the range of goods carried.

The Bell report says there is also expansion potential in Big W and Dick Smith.

The only dark cloud is an emerging competitive threat from the German Aldi group which is offering low prices but a limited range.

Woolworth has launched an exclusive banking arrangement with Commonwealth Bank through an “EZY-Bank” credit/debit card facility which will be available in 640 supermarkets and Big W stores over the next twelve months with other products to be added in due course.


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1 year TSR5 year TSR
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722 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
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Source: Morningstar

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