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Murray Johnston joined Woolworths in 1976 at Caloundra, Queensland as a store man (unpacking trucks). During his years with Woolworths, Johnston progressed through various roles within the business including store manager in 1980, category manager and merchandise manager for Queensland.
In late 1999 he moved to Sydney to work on a nationalisation project that took the Woolworths Supermarket business from six states to one national team. Johnston transitioned the six buying teams to one Shared Services Team from 1999 to 2000 then took up a role as senior business manager grocery. He is no stranger to awards either, winning the national Joe Berry Award (open to retailers and manufacturers) in 1990 and the ‘Foodweek Magazine’ Retail Executive of the Year in 2002. He moved to his current role in April 2008 after four years as senior business manager perishables and two years as regional manager, New South Wales.
How would you describe your current role? On a daily basis I look after the ranging, pricing and display of branded products in our stores in New Zealand. I have over 100 people in the Auckland office and our 151 store teams. What are the major differences you have identified working between the Australian and New Zealand markets? Both markets have evolved differently in the past 10 to 15 years. The major differences are around the size of the market, brand management, marketing and affordability (quality versus price). You’ve been with Woolworths for over three decades. In your opinion, what have the key developments been in each of those decades? a) The ’70s and ’80s highlighted that the Woolworths business model was flawed, traditional and top heavy, which of course resulted in the financial results of 1986. Seasonal products (along the lines of Christmas, Easter and Mother’s Day) were introduced in the early 1980s as was Home Brand and Private Label. b) The late ’80s saw major changes in management and direction that resulted in the launch of “The Fresh Food People” marketing slogan and educational push. Culture and confidence also improved. Though still a six-individual-states business, competition was tough with Coles and the independents. c) The mid-1990s saw Coles centralise and Woolworths followed suit in 2000. This had a dramatic effect on our business in a positive way. The reality is that on a global scale Australia is such a small market – we sometimes forget that. Over the past few years, Progressive has worked to develop a single merchandising system across the company. How well is this working and are there any plans to streamline this further? We are using the same technology as Australia but our business is managed here in New Zealand. Our long-term plan is to use the same technology as Australia and adapt it to New Zealand conditions. How many private label brands are currently being run? We currently run three private label brands. Home Brand is over 20 years old, Signature Brand over eight years old, and Woolworths Select some four years old. All three are doing a great job but are still less than 20% of the market. How are shoppers responding to these? Shoppers love our private labels because of quality and price. How has the decision to move to one brand (Countdown) impacted on your department? Having one brand to focus on ultimately will help our department but more importantly it will help us produce a better range and price for our customers in New Zealand, which has to be our primary goal. What is your primary objective? Our objective is to satisfy New Zealand customers by working with our suppliers and having a point of difference that consumers can understand, see and capitalise on.
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