WOOLWORTHS HOLDINGS LIMITED
Registration number 1929/001986/06
JSE Code: WHL
STATEMENT ON COUNTRY ROAD LIMITED
Woolworths Holdings Limited's Australian subsidiary, Country Road Limited today
announced on the Australian Stock Exchange that it has entered into an agreement
with Myer Grace Bros that will see a material increase in the volume of Country
Road Limited product available across the entire Myer Grace Bros store network
and the creation of ten destination concept stores. The agreement allows for
Myer Grace Bros to be the only department store to stock Country Road product.
The agreement will give Country Road Limited greater control over its brand,
ensure improved product presentation and allow an increased level of consistent
The arrangement will allow Country Road Limited to adopt a retail-focussed
business model rather than the current wholesale-based model. Through a close
working relationship with one department store, Country Road Limited will be
able to dramatically reduce lead times, operate closer to market and therefore
improve the fashionability of ranges.
The agreement is a continuation of Country Road Limited's move to be a more
efficient, less complex business providing high quality, good value, fashionable
product. It comes on the back of the USA exit, a remodelling of business
processes and supply chain that incorporated the complete replacement of its
core IT systems and the recent appointment of a Design Director.
Country Road Limited intends to open around ten new retail stores over the next
two years with 5 of those to open in 2003/2004. It will also refurbish seven
stores over the same period including its flagship Sydney store in Pitt Street.
A combination of this and the dramatic increase in the depth of the Country Road
Limited range across the 64 store Myer Grace Bros network will ensure a much-
enhanced availability of Country Road Limited product to the widest cross
section of Australian consumers.
4 July 2003
Contact : Simon Susman - Chief executive officer - 083 252 5696
Tel: (011) 481-4434
Date: 04/07/2003 09:20:25 AM Produced by the JSE SENS Department