Investor Update

Jun 2, 2021

Good day. A warm welcome and thank you to all of you online for joining us today. With me is Roy Bagatini, our Group CEO and Risa Isaacs, our Group FD. So I think with no further ado, Roy, over to you if you'd like to keep up with some opening remarks. Thanks, Janine. Yes, and good day to all of you and thank you very much for making the time to join us today. We decided, I guess, to set up this opportunity, which is something we haven't typically done as a group before, and that is to have a pre close call, really to engage with you on various aspects of the business ahead of us going into our close period. The format that we'll follow certainly over the next hour or so will essentially be one of Q and A. So please feel free to begin posting your questions online as we get into the session, as we continue to work through the session. I'm going to kick off with a couple of opening remarks and then as I say, we'll move into the Q and A. You would have noticed that we haven't released the sales update and therefore won't be talking to any specific numbers. But we do want to use the opportunity to really share, as I said, some of the perspectives on the current trading environment and our various businesses in South Africa and Australia in the context of that. We've just got about 4 weeks to go as we sort of round out our financial year. And yes, it has been an unusual and very busy year for us. We did set ourselves an ambitious agenda and we set out to accomplish a number of things. And overall, we're pleased with the progress we've made and certainly where we find ourselves at this point. And obviously, we look forward to sharing the detail of that with you, particularly when we sort of share our upcoming results. But if I can turn to Australia firstly, it's certainly fair to say, I think, that we've seen a faster recovery there than most would have anticipated. Very different macro context to what we see in SA, but certainly life pretty much back to normal with the exception of international travel. So not a lot of tourism coming in, but also not a lot of Australians traveling out. And that's been quite supportive of the very inward focused consumption, which has certainly buoyed retail spend. And we've seen our share of benefit from that too. Overall, we're quite satisfied with the way we're trading there. And in particular, with the sort of persistent momentum we're seeing in the country road brand, which has been very encouraging. We're also obviously very encouraged by the outlook for both businesses, albeit, yeah, the region is still pretty much prone to snap lockdowns as we're frankly witnessing at the moment with the state of Victoria. But that's something we're going to need to continue to manage our way through. I think in terms of Australia, some of the strategic initiatives that's worth mentioning. We were very pleased with the successful execution of our capital plan. We've reduced net debt. We strengthened the balance sheet. And that critically has enabled us to split the covenant group with David Jones and the Country Road Group and as a consequence unlock value for David Jones Country Road and WHL as a group as a whole. I did say sort of pretty early in my tenure that we would not see any further funding flowing from SA into Australia, and we've maintained that commitment throughout. The business now the businesses there have been set up now with their own funding structures, and I think sufficiently funded to pursue their relative strategic potential. The focus now has really shifted to the P and L across both those businesses and certainly in David Jones various initiatives are well underway. We've been working on the refreshed proposition to the customer. We've been working on how we trade the business. You'll appreciate our margin, our historical margin performance there has been something of a challenge. We're working on improving GP margin and reducing cost to sell overall. And in fact, we're making good progress literally on all fronts. One of the things I do want to call out specifically is one of the key priorities we've had there was stemming the losses from our David Jones Foods business. And pleased to say that we have recently closed our smaller format food stores, Burke Street, Capital Grand Melbourne, which were all loss making. And we're well into the process of exiting from the trial that was initiated with BP. And the result here, I think, is that we're going to convert the David Jones sort of food losses, which you may recall, we're running at around 50,000,000 a year from an EBITDA perspective to a breakeven position, certainly within our next financial year, just as we said we would do. So that's a couple of opening comments on Australia. Happy to come back to any of those points in our Q and A. I think shifting over to South Africa, we've from a food perspective, I mean, we're very satisfied with the way we're trading in Foods at the moment. The business remains quite resilient. We've made some successful investments into price. Those initiatives are resonating well with customers and certainly paying off. In terms of online, we've now expanded our online capabilities and are now ready to roll out the next phase of Woolies Dash. We've also launched our W Seller prototype early days, but certainly resonating well, lots of great feedback on that. And certainly, the opportunities to continue to grow share through our accessibility strategic theme, I think, is very exciting. Looking to the end of the current financial year, I mean, you'd recall that we're up against a pretty tough set of comps, given the impacts of COVID, which positively impacted sales, GP and EBIT margin in the second half of last year, and particularly in this final quarter. But really, within this context, the convenience formats across food continues to outperform, particularly our larger format stores. But in terms of category, we're seeing some recovery in prepared food, which is good news, and continued growth in grocery and frozen. On the FBH side, as you're keenly aware, I mean, this business has been beset with all sorts of challenges, both in terms of strategy and execution, and we continue to work on those. We have done a full review of the business and a reset of our strategies, and execution is now underway. Appreciating the nature of this business, it will take a moment for us to see what I would like to call sustainable progress and not just sort of ad hoc process progress, but sustainable progress that we are in fact targeting. So more to come there. But top line certainly remains under pressure, in part due to the fact that we are exiting many of our private label brands and consolidating under the Woolworths brands. We're reducing our formalwear offering. You'll recall, we talk about us being significantly over indexed relative to the market, and we're certainly cutting back on a fair amount of unproductive space. Effectively, you'll see a big theme play through both in terms of what the customer sees and what we also see in terms of the financial performance, and that is this concept of editing to amplify. Our focus is really on driving quality over quantity, sort of doing more with less and having greater conviction behind the things that we decide to stand for. I've said this before, but we'd be, in fact, a little happier to see a slightly smaller business from a sales perspective, but one that is significantly more profitable. So that is the focus, is really on the underlying financial health of that business. So we don't expect to see any sort of significant market share gains over the short term, particularly in the aggregate, but what we do expect to see are gains in the categories that we've determined are important to us. Clearly, in our minds, this remains the FPH remains the single biggest opportunity for us to unlock value for the group. So I'll pause there for now in terms of opening remarks and really just throw it open to questions. And I think we have a process around that. I think a number of questions already come through. I can see, Janine, if you wouldn't mind starting out and telling us what the first question is. Of course, Roy. Thank you. First question. Roy, you've been in the organization for over a year now. Looking back at the progress you've made, what are you most pleased with, Isma? And any areas where you would like to have done more? Okay. Yes, I mean, it's a yes, it's a bit of a mini performance review in a way. But no, seriously, I think, you'll recall, obviously, I came on board pretty much at the same time as COVID became a reality in all of our lives. And I guess when I reflect on a number of the discussions we were having at that time, certainly around March period last year, we had some very significant challenges that were facing us and that we would need to sort of really deal with, particularly as they relate to the balance sheet and the strength of our balance sheet. And I'm very pleased, by the way, I think our team worked together in formulating an appropriate strategy to navigate through a number of these challenges that we had to deal with. And certainly, when we look back over the last year and we look at where we stand today, the business, I think, is in a significantly more healthier financial position than what we had anticipated would be going into COVID. So very pleased around the way we had, in particular, executed that capital plan in Australia, certainly ahead of expectation in terms of proceeds as well as in terms of timing, which is really important. I think we are trying to convey certainly to our investors that if we say we're going to do something, we are going to get it done. We want to be seen as pretty reliable on that front. In addition to that, I mean, I do think the work we've done on the FBA strategy, whilst I mean, we get to see the benefits that will emerge from that. But I'm very confident that through the re strategizing of aspects of that business, we have clear direction and I'm looking forward to seeing that sort of play through for us. So setting that up, I think, for success. The continued work we do on foods and keeping our eye on that ball, it's such an important part of our business and the continued progress our foods team makes on a number of different fronts, I think, are really important too. And I think just perhaps one final point because I'm sure I can wax lyrical here for a little while. But certainly, I think the shift that we're making into digital as an organization is going to be transformational for us. The way we use data, the analytics we apply can be very transformational for us as a business, and we've made significant strides in ensuring that. I think also that the online piece, you'll recall, right at the outset of COVID, I've acknowledged that we were caught short. I think we've still got some way to go, but we certainly have much more compelling sort of service propositions on the table, 3 formats online, which are all resonating with customers. So quite a bit, I think, to reflect back on, Janine. But I think in terms of some of the things I would have liked to have done more of, I mean, I'd only say that I'm certainly not the sort of CEO that likes to sit behind a computer screen, and I really miss the opportunity to engage directly with the organization. So there have been a number of windows over the last recent months, and we've got out into stores, and that's really where it all happens for me. And connecting with people on a face to face basis, connecting with our customers, focus groups, etcetera, etcetera. And that's the real world. And so I'd like to have done more on that front, but we expect to do much more of that going forward. Thanks. Please could you provide an update on the Willys Dash app implementation? How many stores are on the app now? Is it yet out of trial phase? Please indicate what the issues were that needed to be fixed and have they been? And what is the target for store rollout in the new year? Yes, great question. Thank you. Yes, I mean, you will know that we came to market perhaps a little later than some of our competitors with regards to an on demand sort of solution for our online customers. Yes, but a lot of that was driven by our sort of, I guess, constraints around quality. We do hold ourselves to a very high standard from a quality perspective and we needed to find an appropriate cold chain solution that could be leveraged in an on demand sort of environment. We've worked on that. We've got something that we feel is very effective, and we did go into a test phase and have been in a bit of a test phase, but continuously sort of evolving and improving the overall proposition over the last couple of months. We're at 18 stores today, and we're looking at sort of expanding that to around 50 stores during the balance of this particular year as we continue to sort of almost perfect the offering. There are several learnings that came out of that. I mean, clearly, one of the things one does need to do if you really want to move faster in this online space is partner. And selecting the right partners and working with those partners and ensuring they appreciate what's important to you and how you'd like to run the business has been part of the learning process. And I think we've got to a point now where we're in a pretty good place with all of the various partners, be that the service providers, the pickers, the service delivery people, the technology solutions that we're working with, etcetera. So we do feel we're at a point where we're able to scale up Dash on a go forward basis. And we'll yes, it is an important sort of solution for customers. There is a demand for this on demand app and I think there's sort of non negotiable to be in the game. Certain sort of economic and financial challenges around the overall proposition, which we can certainly elaborate on. But I think we've got something that's going to be compelling. And the good thing is that we can integrate this on demand sort of app together with our curbside or click and collect proposition and our conventional online sort of ordering process into 1 app, which is what we're working on currently. And I think we're the only retailer in this market that has that on offer. Thanks, Roy. Please can you give us an indication into how the more casual winter clothing ranges have been received? What are sell off rates like versus expectation? Okay. I'll take that one, Janine. We as we indicated, a substantial we're over indexing in formal way in both men's and women's. And we have undertaken under Mahnley's leadership a shift into more casual ranges as well as sort of athleisure. However, at this point in time, it's still quite a small proportion of the overall offer. And it's selling along expectations. And some of the lines obviously doing particularly well. I think the new men's range is doing well, but and the men's fleece, etcetera, doing exceptionally well, but still a very small proportion of the business. And obviously, you will see that shift pick up in the new season and in springsummer. Lisa, thank you. One of the initiatives in FBA was edit to amplify. If this is a journey, what percentage of the way through that journey are you? Yes. Yes. Thank you. I mean, I guess, most things in apparel can be described as a bit of a journey. But we're moving fairly aggressively. It's probably difficult to put a specific number on, but I think we're at least halfway down that particular track. You will start to see from a customer perspective when you walk into a Woolies store, certainly fewer brand names, brand labels and you also see how we sort of starting to integrate into the Woolworths brand and how we're bringing that brand to life in a way that we haven't done for some time. So yes, I think we're making significant steps in that process. But one element of editing to Amplify is the consolidation of the over proliferated sort of propositions we had out there. There's also an element around the number of product categories that we're focusing on. We're not trying to be everything to everyone. I think historically, we always, I think, refer to ourselves at a bit of a broad church when it came to trying to meet consumer demand. And that's clearly, that's a very tough strategy, you know, and I don't think one can be everything to everyone. And we have chosen the things that we think are most important to us that resonate with who we are as an apparel player in the apparel space in South Africa. And there's only a handful of key categories that we're absolutely needing to sort of really focus on to drive the performance that I think we need to get to. Editor Amplify also talks about our organization and the structure. It also talks to our simplification in terms of ways of working and the de bureaucratizing of our business where we've had lots of different sort of processes, sign offs, etcetera, etcetera, a lot of stuff that had really got in the way of being agile and responsive in place. So it is a big theme across the FPH sort of strategy and one that I think is, as I say, we're making some good progress on. And we should start seeing the benefits of that much more evident as we play out the back half of this year and certainly from a financial perspective as we go into next year. Roy, thank you. It's a question for Aretha. There's been a significant improvement over the last two results in your working capital management. How sustainable is that? And how are you feeling about the health and shape of your inventory position in particular? We've been very pleased with the way that we've tackled working capital management. Obviously, lots of lessons learned through COVID in terms of cash generation, in terms of looking at terms of trade. Some of those terms of trade are actually now normalized. We pushed that out during COVID. But in terms of stock turn, in terms of weeks cover, all of those metrics are showing improvement and continue to show improvement. We're very happy with our inventory position. There are some timing differences there based on supply issues, but generally in good shape. And in Ritchie at year end in our apparel businesses across the board should in fact be lower than last year. And remember last year we had a significant emphasis on clearing of stock and just generating cash. And this is due to how we're trading the business, reducing intake more in line with actual requirements and also some space reduction. On the food side, we will see an increase in inventory, but working capital management in the food business is really not an issue, highly highly cashing into the business. And yes, thanks, Janine. Piza, thank you. Checkers Fresh Egg Stores performance has been strong and ShopRite is focused on growing this format. What is Willy's competitive advantage that will help retain customer loyalty? Yes, I mean, I think, we've probably we have spoken about this before, but I think it is absolutely worth sort of reminding folks about. I mean, I think the Woodies Food Business, we certainly see as this premium food proposition as sort of synonymous with Woolies. And the team would sort of contest every single inch of this space. And there are a couple of reasons why I think they can do so successfully and for some time to come. I mean, you're aware, obviously, we have an immense amount of trust in the Woolies Food brand and that's been built up over many, many years through various things that the team have been executing. I mean, for 1, our focus on quality throughout. I mean, we do hold ourselves to a much higher quality standard than most of our peers do in the industry. And we're able to sustain that because we have capabilities such as centralized distribution, cold chain capabilities. We have immense amount of investment going into food science, food technology, agronomists, etcetera, etcetera, that really look at all aspects of how the product is made and how we bring it to market. Obviously, this is based on great long term relationships and partnerships with suppliers that have been invested in over many, many years. We have, I think, a very formidable new product development capability. We drive innovation perpetually. I mean, we have a series of targets around levels of innovation across different categories. And you will find somewhere between 10% to 15% of new of products that are new or innovative in our stores at any point in time that might not have been near the previous season. These are capabilities which we often refer to as sort of back end type capabilities, but they're certainly not the ones that the customers seize on a day in and day out basis, but they really are not that easy to replicate. And so from that perspective, I think we do have a fairly entrenched sort of series of competitive advantages in the space. Beyond that though, I think when we look at the opportunities for growth, we're also excited about that. I mean, the capabilities enable us to look at growth whether it's through greater opportunity to access the brand and bring new consumers into the brand through our pricing initiatives, our range extensions, through our format opportunities. We're very confident that there's significant headroom for us in this business. And we have we do have an amazing skilled and experienced team that sits behind all of this. So I think there is those that want to play in the space and then those that can do it on a sustainable basis and put ourselves into the latter category. Thank you. Reza, perhaps a question for you. Please could you comment on any progress made regarding cost cutting across the group? Yes. We cost cutting, again, has significant emphasis across the group. We obviously saw a reduction in our cost base in the previous financial year through COVID, lots of costs that we did not incur like travel, some of those cash costs, etcetera, etcetera. And again, like with working capital, lots of lessons learned through cost cutting that we're hoping to sustain. We've set cost targets for each of the businesses, so all of South Africa, the between the foods and the clothing business, FEH, David Jones and Kanki Road. And for this financial year, all businesses will in effect meet and or exceed their cost targets for the FY 'twenty one financial year. So I'm very pleased with that. The one thing I do have to remind you of is that in the case of David Jones and Country Road, we had significant relief in our cost base in the form of JobKeeper and rental abatements in the second half of the previous financial year and in the second half of and in the first half, sorry, of FY 'twenty one. So in last year, the total one off relief was $59,000,000 across David Jones and Country Road. And in the first half of this financial year, it was about $79,000,000 So significant impact on the cost base. Riza, thank you. Roy, if I heard you correctly, you have ended the BP JV in Foods in Australia and closed the smallest stores. Does this signal the end of your food journey in Australia? Yes, I mean, it's a good question. I think, again, being very candid, I think our strategy for foods with David Jones in Australia was unfortunately fairly flawed right from the outset. And a sort of cuts and paste from SA was never really going to be the solution there. And I think we went about doing things in a way which we've seen the sort of consequences of here. I think our commitment here was really to ensure that what we do in Foods is not detracting from the profitability of the business, but ultimately becomes a contributor to the profitability of the business. So I don't think we're going to be sort of out of foods in every sense of the word, but we are going to be doing it very differently and we're only going to be playing the game in a way that allows us to for food to be accretive going forward. It's likely to be more on a concession basis and we, from a David Jones perspective, will probably be more in the longer life type categories. And so it's not I wouldn't say it's an end to DJ's food, but certainly a fundamental shift in what the ultimate proposition would look like. Thanks, Jeanine. Thanks, Roy. We've got a few questions around the sort of margin outlook for FBH. Do you have a minimum margin target in mind for FBH? At what margin would this be a successful turnaround? Yes, I mean, I think you said we would probably share some of the sort of outlook from that perspective at our year end results, and we certainly still intend to do that. Yes, I can certainly tell you that there are probably 3 sort of key sort of measures or metrics that Mahni and his leadership team are challenging themselves to sort of really dramatically enhance. And they really relate to the percentage of the product that goes out our stores at full price. So we're driving much more full price sales as a theme, which obviously has the commensurate sort of financial impacts. The second one is really around the percentage of markdown in the system. You'll remember we've spoken historically about how that has ramped up quite dramatically over the last several years. So markdowns is a big focus. And then finally, we really one of the other metrics, there's several others, but the other or the third key metric is really around our trading densities and looking fundamentally at not only sales per square meter, but really margin per square meter. So those are the 3 big measures. And often, I do get the question around how will we start to sort of see when the turnaround strategy is beginning to resonate. We are looking at looking for progress along those three dimensions as one element of the turnaround getting traction. Well, thank you. What is the impact of high freight costs on your margins? Is there a risk to receiving your summer ranges in time given global supply bottlenecks? Yes. We look, the global freight demand is high at the moment as we most companies and countries have come out of COVID. And the lead times are unreliable. So we're doing our best to manage inbound stock delays. We have some direct contracts in Australia. We've pulled forward some July August ranges to mitigate some shipping delays in country road. And given the COVID crisis in India, Indian suppliers have been requested to ship already made products, although India is only about 6% of our total supplier base. So in South Africa, we are seeing some pressure on input costs, but and we are monitoring this. And hopefully, with the stronger end, there will be some mitigation of this cost actually that we'll see coming through in 6 months' time in terms of that. Is the South African business sufficiently ring fenced from the Australian business? And if so, how has this been done? Yes. I mean, I'll start. Riza, if you want to add in, you're welcome. I mean, please do. I mean, clearly, the businesses are entirely ring fenced fenced from both a banking perspective, covenant group perspective and also from a landlord perspective. I know that there's always been there's often been an interest in do the landlords have any further recourse, etcetera, and they don't. I mean, they have they are totally ring fenced relative to their specific business units. Wiese? Yes. The only point I want to make there in addition to that, thanks, sir, is the $75,000,000 second year loan. That has shifted from David Jones to Country Road. We have a facility in place for Country Road, no facilities for David Jones. But again, just to point out, we're not using that facility. The country is not using that facility, and we don't foresee the subsidiaries in Australia leaning on that facility in any way. Thank you. Can you update us on the progress made in reducing space, both in FPH South Africa and David Jones? Sure. I mean, I think we've spoken previously about our sort of targets around space reduction in FPH. We know we're sitting on a fair amount of excess space and the teams have got a plan in place, which gets them into, as a minimum, 15% space reduction over the next 3 years. We have an internal target. In fact, that's a little higher than that, and probably somewhere northwards of 20% relative to current space within and across the business. We're making good progress this year. And again, as we get to our year end results, we'll certainly share more, but absolutely on track to deliver against that in South Africa. As far as David Jones is concerned, you'll recall, we did have a target that we put out there given the fact that 48 stores is well way too overstored for the size of the market in Australia and for the business that we have and moving and getting out of space is obviously an important a very important strategy. Frankly, the biggest strategy is really around driving down occupancy costs. And for us, space is one component of that or getting out of space or reducing big stores, making them smaller, closing certain stores or ultimately renegotiating terms with landlords. We sort of as you know, we're sort of in the mid teens around occupancy costs, and we need to bring that closer to higher single digit. And that's the plan that the team are at. Specific to the space reduction, though, we had a 20% space reduction target over a 5 year period. We've accelerated that to getting that accomplished within the next 2 years. So yes, we remain on track to make that happen. Thank you. How should we think about the gross profit margin recovery in FBAH? Well, I mean, I think, I've called out, a couple of key metrics just a minute ago, which are all sort of fundamental drivers of gross profit. We have been fairly sort of inefficient in the way we've traded the business over the last let me remind you now, sort of 14 years. This is unfortunately a 14 year slow death sort of journey that we've been on here. And we're all up to sort of flip the switch and get this done pretty quickly. As I said, the nature of these business, you typically take a couple of seasons to really get it back to full momentum. And we'd want to see certainly significant year on year improvements in current levels of GP. Again, we'll get into some of the specific details at our year end results. But focusing on those particular metrics will be a key driver of improving the GP margins. Now that you've executed on your capital plan, how are you thinking about your investment in David Giles? Yes. Thanks, Yanina. I think the first phases has been you know, really to focus on the balance sheet. And the work that we've done over the last several months to get that balance sheet into the shape that it is today has really been, you know, the priority. Very pleased with where things have landed there. And the focus now has shifted on to the income statement, as I mentioned earlier on. It's partly around various initiatives to ensure the relevance of the David Jones proposition within the context of the Australian sort of shopping ecosystem and the team have got several initiatives around that. But in addition to that, we're focusing on the way we trade that business. I mentioned earlier that our historical margins have been declining now for some time. We're looking at stabilizing that and then beginning to turn that. And part of that is really informed by a much tighter and more appropriately informed merchandise strategy. Again, really getting crystal clear on who the customer is and what the proposition is that we're bringing to them, the appropriate mix of brands and appropriate price points across that marketplace. And that strategy, the team have developed and we're underway with that. There's a number of issues here as well that we're focusing on with regards to costs and taking costs out of that business. When we've spoken about a CHF 20,000,000 cost out target, which we're making good progress against, in addition to the continued work we're doing with landlords. David Jones Food was very much part of that as well and addressing that challenge, which I think we've been fairly decisive on to sort of really get to a point of that no longer being a significant drain on the business. So a number of initiatives going on that are all somewhat in progress, work in progress. And the intent would be that as we get to a point where we feel comfortable with where we think we can take these initiatives, we'll look at what the options are with regards to David Jones going forward. Would you be selling 310 Berg Street? What is your market current value of this property? Just a reminder, we sold the Berg Street Men's. We completed that sale about a year ago. We received about $120,000,000 for that building. And then of course, we did the sale and leaseback Elizabeth Street. So we're in a reasonably strong net cash position within David Jones. So no, we don't we're not looking at selling what we call those shipments at this point in time. Based on the last valuations that we had done, we're looking at a valuation of Northwoods of $200,000,000 Thank you. What do you expect the new CRG CEO to do differently versus previous leadership? And how will this translate into CRG's trading? Yes. I mean, I think, obviously, we're really pleased that we've announced the appointment of Rajiv Vopulapati, who's joining us at the end of this month, which is good news. And he comes with a range of really relevant and appropriate experiences for where I think we do want to take that business. We have been spending time with the team there. We have a strategy in play and in place, and I would expect him to come in and pressure test and that strategy and him and I would have several debates, no doubt, about a number of those aspects. But we do believe the sort of operating model we have across the brands that are within the portfolio does provide some significant upside and headroom here. And I would sort of potentially prefer to defer a detailed discussion on that strategy perhaps until he's been in the role for a couple of months and we can come back to you on that. But I don't think you would see in the short term a significant shift in strategy. I think we are comfortable with the direction we're taking with that business and the respective brands within that business. And in fact, as I said earlier on, we're very pleased with the momentum in particular that we're seeing in the Country Road brand, which is really delivering great numbers. Thanks, Roy. Riza, a question for you. Any thoughts on a final dividend? Yes. We are in a much better position from a balance sheet perspective. And after the sale of the 2 buildings, but also in terms of trade and in terms of managing working capital. But as mentioned at the half year, we will be reconsidering our position at year end. We don't have any dividend at the half year, but it's something that will be a topic for discussion for year end. Thanks, Riza. We have seen evidence through Mr. Price and Petcor that the value end of the apparel market has performed strongly. Is it something that you've seen? Has demand been focused on the value end of the FBH range? Yes. I mean, I think there is certainly, yes, a fair amount of growth that we're seeing across players that have concentrated on sort of more economy or lower priced sort of product in that particular range. I mean, fundamentally, that's not who we are and that's not who we want to be. We certainly are a mid to upper market player and our propositions would resonate at that level and so would our fundamental price points. Notwithstanding, we would have certain propositions or products within certain categories that may sort of touch on what we would call a value sort of segment. As we've sort of moved more into casual, there are aspects of products within casual that we certainly want to be competitive on and we feel we can actually do so in a successful manner. So I guess that would be my response to that question here. Sorry? With regards to outlook to David Jones Foods, can we expect to see any material write downs? Is that the question? Yes. We obviously have made some investments in that business over the last 2 years and that's in IT systems, fixed assets, etcetera. And yes, there will be write off of the amounts that we have not depreciated so thus far. And we'll provide an update of this at the year end. It's it will be material to David Jones' food, but not to the group. But yes, at year end, we'll give you some detail on the write offs. Thanks, Riza. In terms of online, please can you let us know what the online sales percentage is running at since the last reporting period? Is it the same, higher or lower? And please provide an update on the DASH trial. I think we could probably answer the last part of that, but maybe the best part for me. Yes. And I guess we're referring to SA mainly over here, right? Yes, I mean, I think the sort of percentages we reported out last time around, they have essentially sustained. We haven't seen a dramatic movement up or down on those, but they have sustained where we've had beauty and home closer to the sort of double digit level. We've had fashion closer to the mid single digit level and food is a little bit less than that. Thank you. I think we are observing most of our questions. It certainly has felt like a bit of rapid fire here, Janine. I'm not sure at least this format. I would prefer to be seeing people and talking to them than taking questions rapid fire from yourself. But we can look at how we improve on this sort of format going forward. But yes, I mean, if there are any we've got a few more minutes, so we can certainly see if there are any further burning questions. Happy to sort of see if anything else comes through. Well, I think we largely through everything. Maybe any sort of closing remarks or we don't I mean, again, just thank you very much for your engagement today. As I said, it was a bit of a different sort of opportunity for us. And hopefully, we've been able to, from Riza and myself, provide you with a little bit more perspective and color as to where we stand today. As I mentioned at the outset, it has been a very busy year for us, but it's been a really exciting year and a year in which I think we've been able to certainly reset a number of the key underperforming components of our business, which does set us up well going forward. We appreciate the challenges that we still have with us, but we are excited about the opportunity simultaneously. So and really look forward to hopefully more of a face to face sort of engagement kind of go forward basis. I'm not sure we'll be there quite yet when we do our final year results. Hopefully, there might be a chance of that, but if not, sometime shortly thereafter. But thank you all for tuning in and for listening to us and giving us the opportunity to share some of our story with you.