Woolies, David Jones and strategic update

Woolworths released a strategic view and investor update of both David Jones and The Country Road Group on their website Friday, the actual presentation was the week prior. The Woolies share price has been moving northwards, getting close to raising its bat (a cricket term when a batter reaches a milestone, some like AB do it often in a single innings, fewer balls faced), 100 Rand has a nice ring to it.

What became apparent to me reading both presentations is that the David Jones outlets, the department stores, are going to start carrying more Group merchandise. A stronger focus on the in-house affordable luxury brands. The "stuff" in the middle between everyday casual wear and absolute luxury is the target market. The whole premise is that the more disposable funds middle income people have, the more likely they are likely to be attracted to something a little more luxurious. Woolies highlights this group as Medium-upper in the Country Road presentation. Those are the brands that we will become more familiar with as South African Woolies shoppers, Mimco, Witchery, Trenery and Country Road itself. More recently you may have noticed (ladies, help me out here) the activewear segment, a fast growing global theme. Activewear replacing casual wear as everyday attire. Darn, I should have known, just as I was embracing jeans again.

Mimco is new here in Msanzi, only a year old. Bags, accessories, soft luxury. Trenery looks to target the older affluent market, read into that richer and older people. I really think that this business is going to deliver on their aim, to become the best retailer in the Southern Hemisphere. In other news however, the split of the population by hemisphere is 88 percent Northern, the rest us lonely souls are down in the Southern Hemisphere. 7.3 billion people globally, 12 percent in the Southern Hemisphere, that equals 876 million people. I can live with that.