WOOLWORTHS: Retail Pioneers Pursue Pivotal Green Goals

Based in South Africa and operating across a further 10 countries in sub-Saharan Africa, as at June 2021 Woolworths SA had 719 store locations across this geographical footprint as well as a formidable online presence. Almost 33,000 people rely on it for their employment and some 3.7 million customers are active members of its WRewards loyalty programme.

Woolworths Financial Services, a joint venture between Woolworths South Africa and ABSA Group, is then posed and ready to serve Woolworths customers with focused financial products and associated services.

“Woolworths South Africa is a leading sub-Saharan African retailer offering a range of primarily private label products,” the company introduces. “Woolworths SA offers a wide range of quality clothing, general merchandise and food products with a focus on innovation, value and sustainability.”

AHEAD OF THE CURVE

Woolworths has been at the forefront of many experimental, innovative and, ultimately, long-lasting facets of retail over its legendary lifetime. Keen to attract and retain the best retail professionals, it was among the first local retailers to offer employees a pension fund, medical aid and maternity leave, and was also an early adopter of technology, already using a computerised merchandising system by the early 1970s. 

Such dynamic thinking has consistently extended to Woolworths product offering, too. In 1974, the retailer became the first in South Africa to introduce sell by dates on food packaging, now a crucial and universal measure in safeguarding and improving shoppers’ experience and wellbeing.

The pandemic offered Woolworths the ideal opportunity to show its nous in fulfilling customers’ most pressing contemporary needs, expanding its shopping options through a number of new contactless, Click & Collect drive-through stores. The scheme enabled shoppers another quick and convenient option for grocery shopping, without having to leave the comfort and safety of their cars.

“We have seen an unprecedented increase in demand for our online offering during this crisis,” said Liz Hillock, Head of Online and Mobile. “Since the start of the lockdown we’ve increased our capacity by over 50% but demand remains sky high. Click & Collect is a great way to scale, because it also means we don’t compromise on our difference and core qualities, that being our rigorous cold chain to keep your favourite Woolies food fresh.”

Even this month, Woolworths has reacted to the emergence of delivery services as one of the key markets in the country by moving to expand its Woolies Dash offering throughout South Africa. CEO Roy Bagattini pointed out that 30 stores in the country have same-delivery services and posited that this number will likely be closer to 100 by the end of the year.

“I’m very excited by our runway for profitable growth, and the opportunities we see to invest in our diverse businesses,” he said at the recent shareholders’ meeting, highlighting a number of key differentiators the service possesses to help set it apart. “We are on track to rebuild our financial credentials, drive long-term value creation, and restore our business to its rightful place in the hearts and minds of all our stakeholders.”

ONGOING SUSTAINABILITY JOURNEY

April 2007, meanwhile, saw the launch of one of Woolworths’s biggest ever initiatives in a history of progression and ingenuity, in the form of its Good Business Journey. “It is a bold plan to make a difference in eight key areas on our journey towards sustainability: Energy, Water, Waste, Sustainable Farming, Ethical Sourcing, Transformation, Social Development and Health and Wellness,” Woolworth explains.

“We’ve made a commitment to care for the environment, our people and our communities. We call it our Good Business Journey.”

Exacting goals comprising this stiff, staunch commitment. All directly sourced products must henceforth have at least one sustainability attribute, and all key commodities must be responsibly sourced. 500 billion litres of water is the target saving, and there is a drive to halve its energy impact simultaneously and to source uniquely from renewables by 2030.

“Achieving sustainability in our supply chain and our own operations cannot be done overnight,” Woolworths sagely recognises. “It is an ongoing journey.” The announcement of a plastic bag-free store at Woolworths Steenberg and reusable bag awareness campaign was the perfect way to commence National Marine Week, and followed the announcement of Woolworths’s commitment to have zero packaging waste-to-landfill and for all packaging to be reusable or recyclable by the close of this year.

“This is an ambitious target,” Woolworths added, “as most international retailers and producers with a similar commitment have set their sights on 2025.” The R5.50 reusable, recyclable shopping bag is locally-made from recycled materials by Isikwama, the black enterprise development supplier and long-standing partner of Woolworths, which has grown into a 100-employee strong organisation over the past eight years. 

Since opening its doors in 2010, the Woolworths Palmyra store in Claremont, Cape Town has consistently been ground-breaking in the sphere of advanced green building features and has set the green benchmark within the vast Woolworths property portfolio. The food market store was recently decorated as South Africa’s first retail outlet to achieve a 5-star rating certified by the Green Building Council South Africa (GBCSA). 

“GBCSA congratulates Woolworths on embracing green building practices and leading the way in creating more sustainable retail outlets in the country such as this one,” commented Manfred Braune, Chief Technical Officer of the GBCSA.

“This is not just about doing the right thing, although that is, of course vital in the face of our local and global environmental challenges. It also makes good business sense to be investing in renewable energy, water harvesting and using innovative energy and water saving practices. Going forward, we look forward to seeing more green transformation in the retail industry in South Africa.”

Woolworths agrees, and looks forward to being integral to the revolution. “Our vision to be one of the world’s most responsible retailers, and sustainability is core to our business – it impacts everything that we do. It has been entrenched into the culture of our organisation and is put into action through our Good Business Journey strategy to enable a consistent approach to managing sustainability issues across the Group.”

After all, sums up Feroz Koor, Woolworths Holdings Group Head of Sustainability, “as South Africans, we ultimately all want the same thing: a more sustainable country that protects its extraordinary natural heritage in our lifetimes, and for future generations.

“We believe that setting ambitious sustainability goals challenges our own business to do more, and inspires others to collaborate on and contribute to this vital endeavour.”