country road

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country road
performance
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country road
key points on future strategy

• Exited the US market in January 2002
• Focus on Australasian market
• Clarity on brand proposition and brand vision
• Country Road is the embodiment of the modern
  Australian lifestyle. The brand is characterised
  by natural style, simple design, authenticity and
  a sense of space.
• All product, marketing and store environments
  reflective of the vision
• Deliver savings and focus on core Australasian
  retail business as a result of USA exit

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country road
key points on future strategy (cont.)

• Continued roll-out of e-volution
• - Further efficiencies
• - Improve availability of flow and seasonal
• merchandise through transformation of
• planning systems and processes
• Change perceptions of price and quality through
• - Key value item programme (core volume
• pieces at outstanding prices)
• - Broad based media campaign (including
• television)

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country road
operations

• Franchise deal in Gulf
• Exploring Asian market opportunity
• One international range
• Rationalise suppliers / mills

• Deal signed for 13 stores over 3-5 years 2002
• First store opens in Dubai in September
• Heads of agreement with Li Fung for further
  expansion in the East
• Deal to be finalised by end February
• Exit from USA has resulted in rapid progression
  to one range concept. Significant reduction in
  complexity and increased focus on core Australian
  business
• Key strategic partnership concept established
• Yarn and fabric mills reduced from 180 to 15
• Some 8 manufacturers now covering 70 of product

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country road
operations (cont.)

• Improved sourcing model
• Absolute focus on product
• Forward wholesale sales

• Reviewing agency relationship - decision end
  February
• New model established through
• e-volution rolled out in next 12 months
• Availability of flow merchandise and fast
  response of fashion product a key focus
• Strategy reflects product as principal focus
• Full merchandise team in place Merchandise
  managers report directly to CEO
• New ranges show commitment to quality of fabric
  and make
• Value proposition strong and clear
• 15 lift on sales January September 2002
• Indicative of positive reaction to design,
  quality, fabrication and price

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woolworths holdings
risks

• Sustainability of Woolworths textiles performance
• Ability to turnaround Country Road
• Local economy

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country road results
income statement
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