Perceive Us as a High-End Bargain Retailer

Going back in time about 15 years, there was a real threat of the German discount store chain disappearing for good. Fast forward to the present day, the company is making a triumphant return to Austria with more than thirty new store openings anticipated by the end of the year.

In 2009, the German discount department store chain, Woolworth, was on the brink of bankruptcy. With 323 branches in Germany and twelve locations in Austria, the company was facing severe financial difficulties. However, a change in ownership led to a turnaround in Woolworth’s fortunes. From 2013 onwards, the discount store began to experience economic success once again.

Since last year, Woolworth has managed to reestablish its presence in Austria with four locations. By the end of the year, they plan to add more than 30 additional stores. Ivana Jezidzic, the head of Woolworth Austria, shared her thoughts in a COURIER interview. She believes that Woolworth, being a low-cost provider, holds a great potential in Austria.

Despite the reluctance among the population to spend, the ongoing energy crisis, and other factors, Woolworth still aims to expand and significantly increase the number of its stores in the coming years. What’s the reason behind this?

Ivana Jezidzic: The consumers have become more aware of the prices and have grown more sensitive to them. In such a scenario, a discount store like Woolworths is just what the market needs.

Compared to Germany, Woolworth isn’t as well-known in Austria. What’s your strategy to establish the brand in this country?

We currently operate four branches in Austria, located in Kapfenberg, Mürzzuschlag, Neunkirchen, and Eisenstadt. Many Austrians are familiar with our brand from before. In our Kapfenberg branch, we have a team member who has been with us since the early days.

There are plans to open about 30 more locations in Austria by the end of the year. Can you share more about these potential locations?

Our goal for 2024 is to establish 30 locations. We aim to fill the void in small and medium-sized cities that has been left by the closure of small retailers. We’re open to all locations, from those with a population of 500 to 200,000. Even Vienna is on our radar, and we’ve already secured a few locations for 2024.

Why did you choose Eisenstadt as your first location in Austria?

Eisenstadt perfectly represents what we aim to embody. It’s a typical medium-sized Austrian city that offers shoppers a department store experience: an attractive presentation of goods without rummaging tables. Despite being price conscious, customers still expect good quality. Our own brands can compete and keep up with branded products.

Given the recent insolvency of the Galeria Karstadt Kaufhof Group, does Woolworth feel concerned about the department store feeling?

We’re deeply saddened by the situation. However, the locations in Germany, where we’re planning to expand, are of interest to us. Our concept is versatile enough for our branches to fit any size. Our expansion team will review which areas are suitable for us.

The Dutch discounter Action is already established in Austria. They offer a lot of branded and private label items. Is there still a need for Woolworth?

We aim to be recognized as a superior non-food discounter. What sets our concept apart is the balance: we offer around 30 percent textile content and 70 percent non-food items. Our own brand range features around 10,000 items.

Sustainability, especially in the textile sector, is becoming increasingly important. What’s Woolworth’s stance on this?

We’re primarily a discount store that offers textiles for everyday needs – we’re not a fashion store. In the private label area, we have control over the products and we ensure that we don’t have to destroy or dispose of anything. We’re also focusing more on regional suppliers: we currently have ten from Austria. However, we’re still in the early stages. In five years, things will look quite different.

And how would that be, exactly?

We hope to have even more regional suppliers and a branch network of 140 locations in all state capitals and medium-sized cities.