Who Will Be the ‘Winners’ from the Closure of Woolworths?

We know who the losers are, but who will be the 'Winners' from the closure of all the Woolworths stores by the 5th January? Strategic retail planning experts GMAP Consulting have today released a report that illustrates which retailers will benefit from the closure of Woolworths 807 stores and the £2.7 billion in sales they generated.

GMAP Consulting has been working with retailers for over 20 years building revenue forecasting models. The new version of GMAP's RetailVision tool enables the testing of scenarios such as the closure of all Woolworth stores.

Once the Woolworths stores are closed the customers previously attracted by them will be redistributed amongst similar retailers of value-for-money homewares, DIY, children's goods and entertainment products. Using their wealth of retail intelligence and advanced business modelling technologies, GMAP Consulting have been able provide a robust prediction of where all the revenues will most likely go and identify which retailers will potentially gain the largest percentage of sales.

The key findings from GMAP's report show that:

  • Nationally Argos is estimated to be the biggest winner taking 10.48% of Woolworths Homeware and DIY sales.

  • Second is WH Smith with 9.06%

  • And Wilkinsons is third, taking 8.22% of their sales

  • Marks and Spencer, Tesco, Morrison's and Sainsbury's also will be seen to make notable gains, reflecting the impact of supermarkets on Woolworths traditional offering.

However, within this there will be significant regional variations. Woolworths sales in each region varied markedly - the South East has had the highest sales with the South West and Scotland also strong regions. The East Midlands generated the least sales for the retailer.

Therefore we are likely to see a strong regional variation amongst the bigger retailers:

  • Argos is expected to receive nearly 23.04% of Woolworths revenue in Scotland yet in Wales this figure falls to just 5.88%.

  • Sainsbury's have a more significant presence in the southern areas of the UK and will make their most significant gains in London, the South East and East Anglia.

  • Regional retailers also see strong gains; Boyes have a northern heartland and will receive 8.59% of Woolworths Homeware & DIY revenue in Yorkshire and the Humber and 6.09% in the North but no significant gains elsewhere.

  • Morrisons, with a strong Yorkshire heartland is predicted to gain 4.54% of the revenue in this region but has significantly lower share of the UK market in other regions and is expected to gain only 1.96% nationally.

Andy Fowler, Retail Director for GMAP Consulting comments:

"This analysis illustrates some of the foreseeable impacts on the retail landscape under current market conditions. However, it is not all doom and gloom as some retailers, including local smaller stores are likely to experience higher volumes of custom as a result which in turn could generate further jobs and boost regional economies".


Notes to Editors

About GMAP Consulting
GMAP Consulting (www.gmap.co.uk) has over 20 years experience in retail, automotive, petrol forecourt and financial services and specialises in helping both UK-based and multi-national organisations develop their retail networks, sales territories and market channels to be more efficient and profitable, by understanding the market dynamics that exist between consumers and retailers.

About the Callcredit Information Group
Callcredit Information Group (www.callcreditgroup.com) comprises six core businesses (Broadsystem, Callcredit, DecisionMetrics, EuroDIrect, GMAP Consulting and Legatio) each delivering services around data decisioning to satisfy the increasingly complex needs of their clients in the areas of credit risk, marketing, fraud, collections and recoveries, interactive solutions and network planning.