textiles inflation 4%

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woolworths operations
textiles
turnover
10
4
4
16
13
textiles inflation 4
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woolworths operations
textiles

• Market share
• 12 month average
• this year 16.7
• last year 15.9
• 3 month moving average
• this year 14.9
• last year 14.6

• Market share movement
• 3 month moving average
• Childrenswear
• Footwear
• Homeware
• Ladies intimatewear
• Ladies outerwear
• Menswear

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woolworths operations
textiles performance

• Beautifully styled, classic and modern
  merchandise of superior quality and exceptional
  price appealing to different lifestyles
• Progress
• Upgraded fabrics and quality
• Defined mid and top tier ranges
• MSR sales continue to outperform
• More frequent inputs of ladieswear

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woolworths operations
strategy

• Textiles
• A modern, exciting and easy shopping experience
• Gateway store concept
• Commissioned additional new store design
  concepts
• Commence roll-out of modernised store concept
• A culture of committed, accountable intuitive
  merchants
• Ongoing
• A quality, innovative, interdependent supply base
  with an appropriate mix of local, international
  and 100 suppliers
• Local supply base continues to be a strategic
  advantage
• International sources being consolidated
• Mutually interdependent and knowledgeable store /
  buying relationships

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woolworths operations
strategy (cont.)

• Textiles
• Offer differentiated and innovative ranges
• - Trial furniture
• Not successful under review
• - Extend top tier ranges
• Mens W Collection continues to be successful
  ladies launched winter 2002
• - Wardrobe solutions layout
• Successful in ladies, introduce in mens/kids
• Continuously improve our availability Target is
  90 for MSR merchandise
• MSR Total growth 40 Individual lines
  growth 25

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woolworths operations
foods

• Market share
• 12 month average
• this year 6.3
• last year 5.8
• 3 month moving average
• this year 6.7
• last year 6.2

• Market share movement
• 3 month moving average
• Bakery
• Butchery
• Dry groceries toiletries
• Fruit vegetables
• Grocers wine
• Perishables

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woolworths operations
foods
turnover
9
14
12
24
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foods inflation 8.1
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woolworths operations
foods performance

• The home of healthy eating where good food is
  conveniently available in an exciting,
  interesting and fun shopping experience
• Progress
• Relatively better availability, still not optimal
• Brand introduction
• Continuous flow of product innovation
• One-stop shop in a couple of minutes

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woolworths operations
strategy

• Foods
• Good foods strategy through
• Focusing on the nutritional value and freshness
• Removal of MSG and tartrazine from all food
  products
• Optimise our convenience offering through
• Roll-out of 7 foods micro stores and 5 food
  stand-alone stores
• Garage stores

Achieved December 2001 Consistent drive to
remove colourants, flavourants and
preservatives Removed 30/12 6 micro stores,
5 food stand-alone stores Agreed a trial in
Pretoria April 2002
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woolworths operations
strategy (cont.)
Achieved December 2001 80 (No improvement
because of stock accuracy issues) 5 existing -
good customer response 9 stores - assists
promoting new products, WW foods as the icon
fun 4 existing - standards not high enough to
continue roll-out

• Foods
• Improve availability to 85 end of day
• Create exciting shopping experience through
• Roll-out of coffee shops
• Implement in-store food demonstrations
• Roll-out of seafood counters

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woolworths operations
inthebag

• Integrated in the second quarter
• Contained losses from R40m to R10m
• Improve losses next year
• Merged with cellphone business
• Not strategic a service we should have

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woolworths operations
trading space
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woolworths operations
stores

• Achieved December 2001
• New stores
• 12 new stores (11 food stores)
• Rationalisation of trading space
• Reduced space at Sandton
• Local franchise expansion
• 7 local franchise conversions
• 4 new franchise stores
• International business in Africa and the Gulf
• 3 new stores in Ras Al Khaimah, Sharjar, Muscat