Woolies’ ambition ‘optimistic’
A UBS report has cast doubt on Woolworths boss Grant O’Brien’s ambition to double the supermarket group’s sale of ”private label” foods in the near term.
In the report, retail analyst Ben Gilbert says the nation’s biggest retailer is likely to achieve only a 50 per cent increase in five years to still lag behind its international peers.
He said the penetration of the generic food category in Australia remained below the global average, and less than half that of France, Germany and Britain, according to research group Datamonitor.
Mr Gilbert said given the efforts by Woolworths and Coles to drive more sales from their generic labels, penetration would increase from about 18 per cent now to roughly 24 per cent by 2014-15 – an annual growth of 1.3 per cent and $5.6 billion in incremental sales between 2011-2015. Sydney Morning Herald – Read more…