Nature of Revenue Sources and Business Segments
Woolworths Limited is a leading Australian retail company with extensive interest throughout Australia and New Zealand. Its principal revenue generating activities include the retail of food, liquor, petrol, general merchandise and electronic goods through chain store operations, as well as hotel, gaming and entertainment operations.
The company operates in five key business segments; Supermarkets, General Merchandise, Consumer Electronics, Hotels and Wholesale Operations.
The Supermarket Group is the largest business segment, earning the majority of sales revenue. It consists of supermarkets, liquor stores and petrol outlets. The supermarkets include Woolworths and Safeway Supermarkets, Food for Less and Green Grocer, an on-line food retailer. The Supermarket division operates a total of 723 supermarkets, with 22 new supermarkets opened in 2005.
Woolworths Ltd's liquor stores include Dan Murphy's, BWS, First Estate and Woolworths Liquor/Safeway Liquor. Woolworths Ltd operated 938 retail liquor outlets in 2005.
Woolworths Ltd also retails petroleum products across Australia, and has formed a strategic alliance with Caltex to provide fuel discounts. Woolworths currently operates 456 petrol stations including 117 Woolworths/Caltex Alliance sites. In 2005, 97 new petrol stations were opened.
Another important source of revenue for Woolworths Ltd is the General Merchandise segment, which comprises of the discount department store chain, BIG W, which has stores throughout Australia and retails homewares, clothing, home entertainment products and office supplies.
The Consumer Electronics Group consists of Dick Smith Electronics and Tandy, which generate revenue through the retail of electronics including computers, communications and home entertainment products.
Woolworths Ltd also earns revenue from its hotel, gaming and entertainment operations.
As a result of its' acquisition of the Australian Leisure and Hospitality Group (AHL), the Bruce Mathieson Group (BMG) and the Taverner Hotel Group (THG), Woolworths Ltd...