Woolworths (South Africa)
Encyclopedia
Woolworths Holdings Limited is a South African chain of retail stores and one of the largest in the country, modeled on Marks & Spencer
Marks & Spencer
Marks and Spencer plc is a British retailer headquartered in the City of Westminster, London, with over 700 stores in the United Kingdom and over 300 stores spread across more than 40 countries. It specialises in the selling of clothing and luxury food products...

 of the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 . This relationship with Britain's Marks and Spencer was formed after the Second World War, which led to the retailer buying all of the unissued share capital of Woolworths in 1947. These shares were later sold, but close ties still remain. . The first Woolworths store opened in The Old Royal Hotel in Cape Town
Cape Town
Cape Town is the second-most populous city in South Africa, and the provincial capital and primate city of the Western Cape. As the seat of the National Parliament, it is also the legislative capital of the country. It forms part of the City of Cape Town metropolitan municipality...

 in October 1931. It was founded by Max Sonnenberg assisted by his son Richard and Fred Kossuth.

Woolworths now incorporates a series of food stores, some of which are attached to retail stores, while others stand alone or are attached to Engen petrol stations in prestigious areas, such as the ones on Main Road, Bryanston, Rivonia Road, Rivonia or William Nicol, Sandton. Some stores also include a Cafe W restaurant. Woolworths goods are sold at 149 corporate stores, 51 international franchise stores throughout the rest of Africa and the Middle East and 69 South African franchise stores nationwide.

In 1998, the company bought a controlling interest in Australian clothing retailer Country Road
Country Road
Country Road is an upscale store located in Australia and New Zealand clothing retailer, with 68 free standing stores and 77 department store concessions. It is traded on the Australian Stock Exchange, with South African company Woolworths Holdings Limited owning 88%...

 .

The chain was named after the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 chain F. W. Woolworth Company
F. W. Woolworth Company
The F. W. Woolworth Company was a retail company that was one of the original American five-and-dime stores. The first successful Woolworth store was opened on July 18, 1879 by Frank Winfield Woolworth in Lancaster, Pennsylvania, as "Woolworth's Great Five Cent Store"...

 but, because of the current trademark laws, the name was legally used without permission. No financial connection ever existed between the companies.

History

Founded by Max Sonnenberg and his son Richard, Woolworths South Africa first opened its doors on 30 October 1931 in Plein Street Cape Town, in what had been the stately dining room of the famous Royal Hotel. While Sonnenberg had no affiliation with Woolworths in Europe, North America or Australia, his plan was to develop a chain of stores based on Woolworths Australasia Ltd. A pivotal point in Woolworths' history came after World War II, when the company established its relationship with Marks & Spencer (M&S) of London. Sonnenberg and Sir Simon Marks, son of the M&S founder, became good friends which led to M&S buying all unissued share capital of Woolworths in 1947. Later, David Susman, Woolworths' Managing Director, married Anne Laski, Lord Marks' niece. David Susman became a non-executive director of M&S, a position he held for nearly 30 years. Although M&S ultimately sold its shares of Woolworths, the two companies maintained close personal ties as well as a formal technology agreement. Woolworths merged with Truworths in 1981 to form the Wooltru Group (JSE:WLO). Over a twenty year relationship the company underwent much change and transformation that significantly improved sales and profits, before it was partially unbundled from the group in 1997. Woolworths became fully independent again in 2001. Simon Susman, David's son, became Chief Executive of Woolworths in 2000.. David Susman died on 11 May 2010 at the age of 84. Simon Susman resigned from his post as CEO at the end of 2010.

Stores

Woolworths operated through both corporate and franchise stores throughout South Africa and neighbouring countries. Various store formats include full-line stores, food stand-alone stores, food and homeware lifestyle stores, stores offering textiles (clothing, footwear and homeware). Only a selection of merchandise is also available online. Cafes offering organic teas and coffees as well as light meals are situated some larger stores, while several stores also offer a tapas bar style restaurants.

Controversy

In October 2010, Woolworths came under fire as they opted to remove Christian magazines from their shelves and discontinue their sale. This was met with a huge outcry from the Christian community, many voicing that they would boycott the chain store. Their Facebook
Facebook
Facebook is a social networking service and website launched in February 2004, operated and privately owned by Facebook, Inc. , Facebook has more than 800 million active users. Users must register before using the site, after which they may create a personal profile, add other users as...

fan page was flooded with opinion, both positive and negative. Woolworths maintained it was strictly a business decision, with CEO Simon Susman attributing their decision with the diminishing number of sales for these magazines; "We are currently reviewing all magazines sold by Woolworths. We will continue to remove magazines from our shelves that aren't popular with clients. We aim not to offend any community by this policy" said Susman regarding the decision. However, Woolworths vowed to put the five Christian magazines back on its shelves, following a public outcry over the withdrawal of the titles.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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