Sentiment towards Woolworths was high in the aftermath of the David Jones acquisition in Australia in 2014, when the South African company contended that a merger between the two brands would create a leading retailer in the southern hemisphere. Synergies between the two companies were expected to deliver revenue of more than A$5.7-billion (about R51-billion), based on the 2013 financial year. But a little short of two years after the deal, those plans became outdated as turning the David Jones brand around proved to a be mammoth task. In the past two years, Woolworths has been the worst performer among its peers, with its share price declining almost 22%, while Truworths shares were up almost 23%, TFG rose 81% and Mr Price Group gained 78.9%. Woolworths group CEO Ian Moir told Business Times this week that the weakness of the share price was partly due to problems at David Jones. "In the past two years we've had the issues in David Jones and the economic downturn, and 42% of our pr...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.