Big W store: A case study of the decline of discount department stores

Big W is a chain of discount department stores in Australia, owned by the Woolworths Group. It was founded in 1964 and quickly became one of the country's leading retailers. However, in recent years, Big W has struggled, with sales declining and profits falling.

There are a number of reasons for Big W's decline. One is the growth of online shopping. More and more Australians are now shopping online, and this has hurt Big W's sales. Another reason for Big W's decline is the rise of category killers. Category killers are specialty stores that focus on a particular product category, such as electronics or clothing. Category killers often have lower prices and a wider selection of products than Big W, making them more attractive to shoppers.

In addition, Big W has been criticized for its lack of innovation. The company has failed to keep up with the changing needs of shoppers, and its stores have become outdated. As a result, many shoppers now see Big W as a boring and outdated retailer.

Big W's decline is a case study of the challenges facing discount department stores. In order to survive, discount department stores need to find ways to compete with online shopping and category killers. They also need to innovate and keep up with the changing needs of shoppers.

Here are some specific steps that Big W could take to improve its performance:

  • Invest in its online shopping platform. Big W needs to make it easier for shoppers to buy its products online. This includes having a user-friendly website and a mobile app.
  • Focus on key product categories. Big W needs to focus on the product categories where it has a competitive advantage. This could include toys, clothing, and homewares.
  • Improve its in-store experience. Big W needs to make its stores more inviting and engaging for shoppers. This could include renovating its stores and offering new services, such as click-and-collect.
  • Innovate and offer new products and services. Big W needs to find ways to differentiate itself from its competitors. This could include offering new products and services, such as private label brands or online shopping exclusives.

By taking these steps, Big W could improve its performance and reverse its decline. However, if the company fails to adapt to the changing retail landscape, it is likely to continue to struggle.