Woolworths is one of the biggest supermarket brands in Australia and New Zealand. However, the company’s profits have recently waned, and Woolworths is now looking for additional sources of revenue in order to keep itself afloat.
According to The Daily Telegraph, Woolworths expansion into the gambling market has been more profitable than its original grocery business. The report states that for every dollar spent, the company made a 12% profit on gambling and alcohol products. Groceries only brought in a 4% profit.
Woolworths is already working with a number of hotels across Australia and New Zealand in order to earn gaming revenue, but seeing how profitable the market is, the company is ready to expand. So, Woolworths has announced that it will be acquiring seven new hotels in the Sydney area. The $60 million deal will be made with two of the most prominent families in the area: the de Angelis’ and the Waughs.
It seems that Woolworths is really getting serious about its place in the gambling market. Taking a look at how profitable gaming has been for the company in the past, it seems that this is the right decision for Woolworths, as it will certainly help to keep the company afloat.
