Your weekly pulse on retail in Australia and New Zealand. WE 9 Feb 2025 delivering a sharp, insightful recap of the biggest headlines shaping the industry.
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Woolworths ANZ Leadership Shake-Up
Woolworths Group has announced a leadership shake-up to streamline operations and enhance customer focus. Annette Karantoni has been appointed Managing Director of Woolworths Retail, overseeing Woolworths Supermarkets, Metro, Greenstock, and Woolworths Food Company Retail. Meanwhile, Sally Copland will return to New Zealand as Managing Director of Woolworths NZ, replacing Spencer Sonn. The restructure aims to simplify operations, strengthen private-label offerings, and drive digital transformation across both markets.
JB Hi-Fi’s Strong Half-Year Performance Driven by Holiday Sales
JB Hi-Fi has delivered another strong half-year, with net income up 8% to $285.4M and total sales climbing 9.8% to $5.67B. The retailer capitalised on Black Friday and Boxing Day demand, with JB Hi-Fi Australia seeing online sales surge 16.4%, and JB Hi-Fi New Zealand reporting a 58.4% rise in online transactions.
Meanwhile, The Good Guys recorded a 9.2% increase in sales, led by strong demand in floorcare, TVs, and kitchen appliances. The results show that, despite economic pressures, consumers remain willing to spend on essential and entertainment-focused electronics, particularly when big sales events drive urgency.
Q4 2024: NZ’s Biggest Online Shopping Quarter Ever
Online shopping in New Zealand hit a record $1.73B in Q4 2024, up 9% year-over-year, making it the largest quarter for e-commerce in six years. However, while the total spend grew, basket sizes were smaller, showing that shoppers are still budget-conscious and looking for better value.
Key sales periods played a big role in the record numbers:
Black Friday-Cyber Monday: Online sales up 7%, driven by a 11% increase in transactions.
Boxing Day: Online spending surged 21%, marking the busiest Boxing Day for online shopping since tracking began.
While in-store spending remained flat, e-commerce now makes up 11% of total retail spend, reinforcing the continued shift towards digital shopping. Retailers should take note of longer sales cycles, as consumers spread their spending across weeks rather than relying solely on single-day promotions.
Woolworths Faces Roadblocks in Its Supplier Buyout
Woolworths' attempt to acquire Beak & Johnston, a major ready-meal and fresh food supplier, is facing scrutiny from regulators. The supermarket giant hoped to integrate Beak & Johnston into its supply chain to strengthen private-label offerings and compete in the convenience food space.
However, concerns over market dominance and anti-competitive behaviour could derail the deal. If Woolworths fails to secure regulatory approval, it may have to rethink its expansion strategy in the fresh food and convenience category.
Woolworths Unites Retail Divisions Under New Structure
Woolworths CEO Amanda Bardwell has restructured the business, consolidating Woolworths Supermarkets, Metro, Greenstock, and Woolworths Food Company Retail under Woolworths Retail, led by Annette Karantoni. Bardwell said the move simplifies operations to better serve customers.
Digital commerce expert Teresa Sperti noted the restructure reflects changing market demands, positioning Metro for quick commerce growth and ensuring Woolworths’ retail formats drive incremental growth rather than competing. Woolworths aims to enhance private-label strategy and improve customer experience across its brands.
Nick Scali’s Net Profit Plunges 27%
Furniture retailer Nick Scali reported a 27% drop in net profit, as higher interest rates and reduced consumer spending hit discretionary purchases. While demand for premium furniture remains, shoppers are delaying big-ticket buys due to economic uncertainty.
Allbirds Launches ‘Zero Carbon’ Sneaker
Sustainable footwear brand Allbirds has officially launched the Moonshot sneaker, which it claims to be the world’s first zero-carbon shoe. The sneaker is made with regenerative wool, bioplastic components, and carbon-captured materials, setting a new benchmark for eco-conscious fashion.
This launch aligns with a growing consumer preference for sustainable products, particularly among younger shoppers who prioritize ethical brands. As sustainability continues to influence purchasing decisions, retailers must consider how to incorporate more environmentally responsible products into their assortments.
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