Woolworths CEO: We overpaid for David Jones

Woolworths, a leading food and clothing retailer, has had its fair share of challenges in the past year. Despite surviving tough economic conditions, the company has seen a decrease in revenue and an increase in costs. The CEO of Woolworths, Ian Moir, recently sat down with CNBC Africa to discuss the company's performance and future strategies. Moir highlighted the strong performance of the food business, emphasizing that they have been gaining market share and delivering high-quality products to customers. However, the clothing business has faced struggles in the past, with Moir acknowledging that they had lost touch with their customer base. In an effort to turn the clothing business around, Woolworths has focused on providing classic, wearable fashion for their target demographic. Moir expressed optimism about the recent growth in the clothing business and the positive feedback from customers. One of the key areas of concern raised during the interview was the recent resignation of the CEO of David Jones, a prominent subsidiary of Woolworths. Moir clarified that the resignation was for personal reasons and that the company is actively looking for a suitable replacement. Despite the leadership change, Woolworths remains committed to its strategy for David Jones and aims to continue the transformation efforts that have been in progress for the past few years. Moir outlined the significant changes that have been implemented at David Jones, including new systems and processes that have improved the company's ability to manage its retail operations efficiently. When asked about the challenges faced in the acquisition of David Jones, Moir admitted that in hindsight, the company may have overpaid for the business. However, he remains confident in the potential of David Jones and believes that the ongoing transformation efforts will ultimately lead to success. Moir pointed out that many of the costs associated with the transformation will fall away in the coming year, resulting in improved profitability for the company. Overall, Woolworths is focused on addressing the issues in its clothing business, while also capitalizing on the strengths of its food business. The company is determined to overcome the challenges it has faced and is optimistic about its prospects for growth and profitability in the future.