COMMUNICATION1 Contents Introduction................................................................................................................................3 Big W.........................................................................................................................................3 Aspect of excelling at.............................................................................................................3 Aspect of criticism for............................................................................................................4 Recommendations......................................................................................................................4
COMMUNICATION2 Executive Summary In this competitive business world, it is essential to keep on operating in a right way with right decisions to make the company run for long-term. In every organisation, there are highs and lows that the company needs to face but this depends on their power of making decisions to maintain the position in the market with fulfilment of core values. Every company generated the aspect of excelling and criticising for understanding the working within the change in the retail working environment in terms of focusing on the supermarket industry. It only requires planning right strategy, practices and processes for future success consisting modernization and improvising transformation within the offerings and proper guideline nationally and across the globe.
COMMUNICATION3 Introduction In today’s competitive business world, supermarkets industry is making a food retail channel at huge across the globe where it offers broad variety of household necessities, food and beverages with fast transformation in recent. This sector of retail industry is customizing operating strategies using common method such as ECR standards (efficient consumer response) for increasing supply chain efficiencies of supermarket to drive logistics trends. Supermarkets are predominate food products distribution channel of FMCG (Fast Moving Consumer Goods) as a major of the industry while managing the controlled flow(IBIS World, 2020).This report is going to analyse the aspects of company “Big W” excelling at and other as criticism for based on the industry of supermarket. Big W In Australia, “Big W” under Woolworths Group Limited asone of the most loved brands. The company put its team and customer at first across the network of 183 stores all over the country. Moreover, they provide great prices for the families of Australia working with a team of over 18,000 individuals. Its core values are to care deeply, learning and listening while doing the right thing providing “on-trend” quality products to customers at great prices (Woolworths Group, 2020).Recently the organisation has reported growing sale which provides it a competitive advantage than compared to its key competitor including operating in clothing and retailing sector such as K-Mart and Coles (Figure 1).
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COMMUNICATION4 Figure1: Growing sale of Big W Source:(Murphy, 2019a). However, the company is also facing challenges due to growing competition in the retailing sector of Australia which resulted in reducing its sales and profits. The following graph shows the struggles faced by the organisation due to its failure to innovate in the retailing sector.
COMMUNICATION5 Figure2: Australian retail trade (Big W) Source:(Murphy, 2019b). Aspect of excelling at Big W is excelling at fulfilling the needs of every customer by making a real difference for making the company as family grow with its team and customers. The company provide free books for kids to boost their imaginations and sharing stories by gaining knowledge. Also, Big W has its one-stop party shop where individuals can buy things for decorations at great prices especially for families living in Australia. The company created home delivery or Pick- up for free on same-day for growing families as well to show and spread love offering 90 days returns if any customer changes the mind(Big W, 2020).Hence, Big W just tries to makeeverysingledayofindividualseasierthroughitshelpingwaysandofferings. Moreover, they keep on developing more ways for customer and their family to rely on with pricing strategy on big days where customer expects rewards recognition, quality basics, and big-name brands. The company donates through programs with Good360 as being in a partnership while making differences to Aussie families. Thus, the outshining aspect at Big W is its quality products and great prices with putting the company’s team and customer at
COMMUNICATION6 first. The survival of the company in the world of retailing is to excel and embrace while working and operating effectively and efficiently(Salmon, 2016). Another aspect in which the company excels at Corporate social responsibility (CSR) is another aspect in which the company excels at which assist the organisation in creating a positive brand reputation in the Australian retail sector. Woolworth which is the parent company of Big W has implemented policies to make sure that the company is able to deliver effective products and services to its customers without hindering its brand image. For example, the company has implement “Product safety commitment” policies which enable it to make sure that it delivers high-quality products which are focused on customers’ demands and these products did not negatively affect the environment(BigW, 2020). While complying with this policy, the organisation alsoensures that it follows the customer safety guidelines which are introduced by the Competition and Consumer Act 2010(BigW, 2020). As per this policy, the company focuses on conducting factory audit, product testing and inspections to ensure that its products are safe to use for its customers. Customers also have the option to report an incident which they face with the product and the company provides them adequate compensation to protect their rights. Due to these policies, the organisation is ableto create a positive brand reputation in the market which enables it to excel in the Australian retailing sector. Aspect of criticism for In Australia, Big W revealed its discount stores closing within three years as the company was pushing the cost-saving strategy as a failure in the retail market. The impact of closing stores was of affected team of the company as they lost jobs which were their priority. But, the company was committed to support the team for next six months and help in exploring redeployment opportunities for their continuous career with other brands of Woolworths Group at Big W(Hall, 2019).There are 30 Big W stores in total as a discount retailer owned by Woolworths but need to close them within three years due to risk based on the problem of discounter in linked to child of the group losing millions. The customers started to move towards Big W competitor that is Kmart, also Zara and H&M as fast-fashion powerhouses (Brook, 2019).Thus, the aspect of criticism for Big W is its cost-saving strategy and making differences between Aussie families and other individuals. In retail, the proportion blown out and pricing tactics mislead is also one of the supermarket’s criticism. The failure is generated with cutting out the misleading promotional practices such as offerings in relation to
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COMMUNICATION7 discounted price. Also, it is essential to work with guidelines to reduce the pricing problems for making sure about the customer’s fair treatment and transparency(Hobbs, 2015).So, it requires modernization in the retail industry with working strategy for increase in operations of supermarkets. Recommendations To recommend, Big W needs to maintain its prices for long-term working in stores thinking of employees and keep the customers happy without any wide failure of struggling. It is essential for the company to restructure the supply chain and increase the level of discount market as Woolworths has great reputation that can create opportunities. Moreover, it is crucial to maintain its operating costs for the company’s market share and success. As Big W is committed to the core values of giving first preference to customer and team, the company should take steps in relation to both rather than thinking of profit by making investments. The decision should be taken of lowering inventory and improving stock flow while making the process and practices in business easier while boosting the gross margins and unsold stock reduction. However, the major issue is not of price but to focus on right stock flow on right day in right stores that will help in end-of-season amount reduction in terms of markdowns and clearance(Mitchell, 2019). The decision of closing the stores were to help in boosting the profitability for attaining the stability of remaining Big W stores for its brand success. So, it is essential for Woolworths Group to open the alternatives for further success and growth while maintaining the values of customer and team as the company’s first priority. It will help in encouraging opportunities and improving the conversion speed to earn as planned for long-term(Lannin, 2019).Hence, this will lead Big W with more sustainable and robust distribution centre and store network with rapid change in the retail environment. Also, will make the growth of sales high and boost the profits in future. Conclusion To conclude, this report sums up the ups and downs as the aspects of Big W under the Woolworths Group with upholding the company’s core values of making customer and team as their first and utmost priority. The company faced various risks and challenges to deal in the market but tried hard to maintain its position as a discount retailer with Woolworth’s
COMMUNICATION8 reputation as well. Thus, in the supermarket industry, Big W focuses on building the great values among the country’s people and development of opportunities for team.
COMMUNICATION9 References BigW,2020.BIGW.[Online] Availableat:https://www.bigw.com.au/about-us [Accessed 17 January 2020]. BigW,2020.BIGWProductSafetyCommitment.[Online] Availableat:https://www.bigw.com.au/product-safety-commitment [Accessed 18 January 2020]. Brook, B., 2019.Smaller suburban centres could be in Big W firing line as discounter announcesfirstof30storeclosures.[Online] Availableat:https://www.news.com.au/finance/business/retail/smaller-suburban-centres- could-be-in-big-w-firing-line-as-discounter-announces-first-of-30-store-closures/news-story/ c398718c53e5155986bf029b82116df1 [Accessed 17 January 2020]. Hall,J.,2019.BigWrevealsthefirstthreestorestocloseinJanuary.[Online] Available at:https://www.news.com.au/finance/business/retail/big-w-reveals-the-first-three- stores-to-close-in-january/news-story/6b78275684d95c02a053d266d6e21a3b [Accessed 17 January 2020]. Hobbs, T., 2015.Criticism of supermarket price tactics “blown out of proportion,” claims BRC.[Online] Available at:https://www.marketingweek.com/criticism-of-supermarket-price-tactics-blown- out-of-proportion/ [Accessed 17 January 2020]. IBIS World, 2020.Supermarkets & Grocery Stores Industry in the US - Market Research Report.[Online] Available at:https://www.ibisworld.com/united-states/market-research-reports/supermarkets- grocery-stores-industry/ [Accessed 17 January 2020]. Lannin, S., 2019.Woolworths to shut 30 of its Big W stores amid retail gloom.[Online] Availableat:https://www.abc.net.au/news/2019-04-01/woolworths-to-shut-30-of-big-its-w-
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COMMUNICATION10 stores-over-next-three-years/10958700 [Accessed 17 January 2020]. Mitchell,S.,2019.WoolworthsfinallybitesbulletonBigW.[Online] Availableat:https://www.afr.com/companies/retail/woolworths-to-shut-30-big-w-stores- 20190401-p519jr [Accessed 17 January 2020]. Murphy, J., 2019a.‘Retail sector in recession’: Warning signs for Kmart, Big W, Myer and DavidJones.[Online] Availableat:https://www.news.com.au/finance/business/retail/retail-sector-in-recession- warning-signs-for-kmart-big-w-myer-and-david-jones/news-story/ 22b6d944bb3d82fc6d93437d433c04b6 [Accessed 18 January 2020]. Murphy, J., 2019b.Surprise retail results after Woolworth’s Big W announcement.[Online] Available at:https://www.news.com.au/finance/economy/australian-economy/surprise-retail- results-after-woolworths-big-w-announcement/news-story/ c176efe37d7db039e894ad0536b1b24d [Accessed 18 January 2020]. Salmon, K., 2016.SURVIVING THE BRAVE NEW WORLD OF FOOD RETAILING. [Online] Availableat:https://www.accenture.com/us-en/_acnmedia/pdf-53/accenture-ksa-food.pdf [Accessed 17 January 2020]. WoolworthsGroup,2020.BIGW.[Online] Availableat:https://www.woolworthsgroup.com.au/page/about-us/our-brands/portfolio- businesses/BIG_W [Accessed 17 January 2020].