Woolworths turning around faster than expected, UBS
Woolworths is turning around faster than expected says a new UBS report.
According to the report, which is based off surveys with suppliers to the supermarkets, the rate at which Woolworths is turning around is faster than expected, with the pace accelerating in the past six months.
The survey that asks suppliers to rank Woolworths and Coles on different issues, saw Woolworths lift its overall score higher than Coles, an occurrence which has not happened since August 2012.
The report said Woolworths has increased its score in customer facing issues such as store presentation and pricing strategy, along with morale, suggesting results for the last quarter of Woolworths 2017 financial year, and the start of its 2018 financial year, should remain strong.
“This survey highlights that Woolworths has taken a step ahead of Coles from a supplier viewpoint, not only in its relationship with suppliers, but also from a strategic perspective,” the report said.
“This, in our view, suggests Coles need to evolve its strategy to regain the ascendency, which could be done any number of ways, the most obvious (albeit costly) being price,” the report stated.
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