Trading Stmnt/CE Appointment

RNS Number:9579P
Woolworths Group PLC
15 January 2002


                            Appointment of Chief Executive 
                            and Christmas Trading Statement


Woolworths Group plc today announces that it remains on course to achieve its 
full year debt reduction and de-stocking targets but with Christmas trading 
being slower than expected, the cost to profit of achieving these objectives has
been higher than anticipated.

Total Group Sales for the 9 weeks to January 5th were up 1.1% on the previous 
year. Big W like for like sales grew by 7.8%, MVC by 3.9% but the Woolworths 
Mainchain declined by 3.5%.

Gross margins have been affected by the implementation of stock contingency 
plans and the lower than expected volumes. This combined with the year-end 
review of the carrying value of stock will have a material impact on Group 
profit for the year.

Plans to control stock were systematically implemented throughout November and 
December and as at 5th January stock at selling price in Woolworths was #120 
million lower than last year. Some of this will reverse over the next few weeks 
but the Group is on course to achieve the targeted year end reduction of #100m 
at selling price.
             
The Mainchain's sales performance was affected by the need to clear all the 
excess stock out of the system, a market for Christmas product (events, gifts 
and confectionery) which was slower and more competitive than expected, a loss 
of market share in entertainment and by the sharp fall in the mobile phone 
market. The performance reinforces the absolute priority of improving the 
operational and commercial disciplines of the business.

Trevor Bish-Jones, aged 41 has been appointed Group Chief Executive. Currently 
Managing Director of Currys, he has been with Dixons Stores Group since 1994 in 
a number of roles including Managing Director of Currys and Managing Director of
The Link and Dixons Stores. Prior to Dixons Stores Group, Trevor was at Boots 
PLC for 13 years in a number of senior retail, buying and marketing roles. His 
start date will be confirmed shortly.

Other senior management changes to support the execution of our operational and 
commercial priorities are:-

Keith Fleming, currently Managing Director of Woolworths plc, will become 
Managing Director of Woolworths Local Stores, with the commercial and support 
functions reporting direct to Trevor.

Christopher Rogers, Group Finance Director, will report to Trevor and will take 
responsibility for the Entertainment businesses as Chairman.

Cath Norgate-Hart, aged 41 has been appointed Commercial Director of Clothing 
and Home for Woolworths plc. Cath is an experienced retailer who has spent the 
bulk of her career at BHS, latterly as Purchasing Director.

The Group remains confident of a significant improvement next financial year 
driven by reduced markdown, stemming the losses from new formats and 
e-businesses and sharper operational and commercial disciplines. For the longer 
term big W's performance is encouraging.

Gerald Corbett, Chairman, Woolworths Group plc, commented:

"This financial year our priorities have been to stabilise the business post the
de-merger, tackle the significant overstocking problem, reduce debt and take 
action on loss makers to give us a sound base for recovery in the year ahead. We
are on target to achieve our stock and debt targets, albeit at a cost to this 
year's profits.

"I am delighted to announce the appointment of Trevor Bish-Jones. He is a highly
experienced retailer with a successful record of managing large national retail 
chains in highly competitive markets. The performance of the Mainchain shows how
much work there is to do to re-invigorate its position in the eyes of the 
consumer and improve retail disciplines."

"We expect to see considerable further progress next year. We have a strong 
brand; major market positions; a national high street presence and sales of over
#2.5 billion. We are continuing to strengthen our management at all levels and 
look forward to next year with confidence."

The preliminary results announcement for the year ended 2nd February 2002 will 
be made on 27th March 2002.
           
For further information please call:-

Christopher Rogers      Group Finance Director        +44 (0) 207 706 5883

Nicole Lander           Head of Corporate Affairs     +44 (0) 207 706 5653
 
Tulchan Communications                                +44 (0) 207 353 4200
Woolworths (LSE:WLW)
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