###31/05/2001 - Wooltru Limited And Woolworths Holdings Limited - Joint Announcement###
31/05/2001 - 20:04:22
31 MAY 2001
WOOLTRU LIMITED AND WOOLWORTHS HOLDINGS LIMITED
WOOLWORTHS (PROPRIETARY) LIMITED PURCHASES INTHEBAG (PROPRIETARY) LIMITED
Wooltru Limited (Wooltru) and Woolworths (Proprietary) Limited (Woolworths)
announced today that Woolworths has agreed to purchase the online retail
business, inthebag (Proprietary) Limited (inthebag), from Wooltru for
approximately R25m with effect from 1 July 2001. This follows the need to
resolve the future of inthebag, given the Wooltru unbundling.
Woolworths' products account for 75% of inthebag's sales and customers
strongly associate inthebag with Woolworths. It is therefore desirable for
Woolworths to maintain an online presence and relationships with inthebag's
Providing an online service forms an important part of Woolworths' strategy
to offer customers a convenient shopping option. inthebag has established
a world class online offer in the South African market place and Woolworths
wishes to leverage this position.
The operation will be revised to take advantage of the opportunities
available in a clicks and bricks model to significantly reduce costs. This
is likely to involve changing from a "central point of distribution" to a
"pick-from-store" model. The revised business model will in time provide
Woolworths with an opportunity to offer all its food, clothing and homeware
product ranges online.
Consultations are currently under way with inthebag staff regarding the
future structure of this operation.
Contact person: Mark Canning, Director: Textiles and Marketing
Contact number: Telephone: (021) 407 3103
Cell 083 253 6272
Date: 31/05/2001 05:07:00 PM Produced by the SENS Department
PUBLISHER: JSE SENS Feed