The last financial year has been no picnic for the consumer electronics division of Woolworths, with the retail giant reporting its computers and communications categories struggled to meet expectations.
The year has been "a difficult one" for the retailer, Woolworths CEO Roger Corbett said in a statement to the Australian Stock Exchange. Its computer retail businesses Dick Smith Electronics and Tandy struggled to achieve results, although business did improve towards the end of the year, according to Corbett.
Constant poor results led to management changes, and Greg Foran now takes on responsibility for the division. Return on funds employed fell to 12.1 per cent.
"The earnings from Consumer Electronics before goodwill were flat during the year, and the result is clearly unsatisfactory," said Corbett.
The division was also dogged by problems in moving its warehousing to one facility in Chullora and the integration of the Tandy business.