WOOLWORTHS GROUP: AI SUPPLY CHAIN OPTIMIZATION

The 2030 Report | CEO Memo | June 2030

FROM: Macro Intelligence Unit TO: CEO, Board of Directors RE: Strategic Focus: Supply Chain AI, Margin Expansion, Competitive Defense DATE: June 2030 CLASSIFICATION: Confidential - C-Suite

EXECUTIVE SUMMARY

Woolworths' grocery business is mature but can expand margins through AI-driven supply chain optimization. Target: 150bps EBITDA margin improvement by FY2032 (from 7.4% to 8.9%).

STRATEGIC PRIORITY 1: SUPPLY CHAIN AI TRANSFORMATION

Capex Investment: $800M-1.0B over 3 years in AI systems, logistics automation

Target Outcomes: - Inventory optimization: -$80-120M annually in carrying costs - Logistics optimization: -$60-100M annually in fuel/transport - Waste reduction (perishables): -$40-60M annually - Total capex payback: 2.5-3.5 years, IRR: 18-22%

STRATEGIC PRIORITY 2: COMPETITIVE DEFENSE

Maintain market share against Coles (competitor) and emerging grocers (Costco Australia expansion).

Actions: - Price leadership through AI cost advantage - Maintain Everyday Rewards penetration (80%+ active cardholders) - Expand food/beverage range (capture more wallet share)

The 2030 Report — Macro Intelligence