Can Woolies survive in the pic ‘n’ mix of etailers?

There was almost a sense of shock when high street retailer Woolworths collapsed last year. OK, so the recession was still cutting a brutal swathe through most industries – and still is in some cases. But when news that it had gone into administration hit the headlines, suddenly the public rediscovered their nostalgia for the nearly century-old stalwart and were literally queuing up to try to grab a last trolley-load of cheap toys, household goods and entertainment before the doors of its 800 stores finally closed in January this year.

However, just six months on – and back by popular demand, so the PR spin would have you believe - Woolies has bounced back with a very much 21st century feel by re-launching online (www.woolworths.co.uk). Pretty much all of the family favourites are still there, with the site’s boss Matthew Hardcastle telling BBC News that: “We’re aiming to create a fun, family web experience which keeps on getting better”.

He also pointed out that it had only been 20 weeks since the brand was acquired and they’re already re-launching – “something you could never achieve with a high street business”.

All well and good but is that actually what customers want? Are the people that remember the good old days of going into a bricks and mortar Woolies going to get the same feeling online? And there is some stiff competition out there, especially as more firms are realising that selling online is a perfect recession model – the power to reach a wider audience with lower overheads.

According to online trading giant eBay's latest Online Business Index, more than three quarters of online businesses are planning to expand or diversify during 2009, 54% expect rising sales, and exports are surging – eBay was up 128% alone.

And not only is it going to get even more crowded out there, Woolworths is also facing the daunting task of squaring up to established gladiatorial competitors, such as the likes of Tesco, Amazon, eBay, Argos, Asda, B&Q...the list goes on.

So has Woolies missed the mark again? Mark Newton-Jones, chief executive of Woolworth’s new brand owners Shop Direct Group, insists that they listened to what their customers want.

Let’s hope so.