Downturn Hits Woolworths

South African mass grocery retailer (MGR) Woolworths has slashed its prices by 5% in an attempt to rejuvenate flagging sales as price conscious consumers shift to cheaper rivals. Up until now, the retailer has positioned itself as a more upmarket alternative to its main competitors Shoprite and Pick 'n' Pay. The severity of the economic downturn (we foresee South Africa's GDP growth slowing to a meager 0.2% in 2009) appears to have forced Woolworths to re-assess its strategy as it loses market share. BMI expects the retailer to continue pushing its prices down in 2009 as its high-end model does

To read the full article, please choose one of the following options: