Woolworths pricing - a press release from Woolworths in SA

Following the criticism Woolworths have received regarding their prices here in Botswana they have issued a press statement as follows:

PRESS STATEMENT: WOOLWORTHS LOOKS TO THE FUTURE IN BOTSWANA
2 June 2014

Woolworths has announced that it will reduce the price of both food and clothing in Botswana after taking over the management of its stores from the previous franchisee.

Following the acquisition of the business, Woolworths initiated a comprehensive review, look at every aspect of our business, including the operational efficiencies and its pricing model. The objective of the review was to ensure that customers enjoy the same brand experience in Botswana as in South Africa.

A more competitive offer
While the review is still in its early stage Woolworths has already put a plan in place to offer more competitive prices to our customers in Botswana.

Paula Disberry, Group Director of Retail Operations at Woolworths explains, “We have listened to our customers and reviewed the pricing model in Botswana. By improving supply chain efficiencies and changing our business model from franchise to corporate stores, we have secured savings which we will pass on to our customers. The savings will be in the form of reduced food and clothing prices from mid June 2014.”

Woolworths is also reviewing its promotional strategy. “It has always been our intention to offer our customers in Botswana the same promotions that we run in South Africa. These promotions will be phased in over the next few months as we upgrade out IT systems to accommodate them,” said Disberry. “Plans are also afoot to launch the full Woolworths WRewards programme in Botswana early next year. Customers who have a Woolworths card can look forward to additional savings on hundreds of items in store by January 2015,” concluded Disberry.

Woolworths aims to become a retail destination of choice
Woolworths has had a presence in Botswana for over 26 years with 22 stores currently. Stores in Botswana form a significant part of our African footprint and we are very excited about the future.

Our strategy is to align our offer in Botswana with South Africa and become the retail destination of choice for our customers.

My initial thoughts?

Firstly good for them for taking the issue seriously. After years of NOT responding to customer complaints about this issue it's good to hear that under their new management structure they're not just listening but they're also responding.

Secondly, let's watch this space. In mid-June let's start watching prices and see what happens!