Skip to main content

Woolworths reports sales fall as shoppers avoid larger malls

| Retailer trading results

Retail group Woolworths says the changes to consumer behaviour due to Covid-19 remain in place, including fewer visits to larger malls and city centres, and a reduced demand for formalwear.

The group’s Australian operations have also been under pressure as that country grapples with a second wave of Covid-19 in some states, while even as restrictions ease in SA, the pace of economic recovery is slow.

Group sales for 20 weeks to end November 15 fell 2% year on year in constant-currency terms, the retailer said in a trading update, but a weaker rand helped lift reported sales by 3.5%.

Woolworths Food remains resilient, the group said, with comparable store sales growth of 9% during the period. There has been a reduced demand for lunchtime and snacking products, with customers opting for larger pack sizes.

Woolworths Fashion, Beauty and Home remains under pressure, with the winter clearance much smaller than in 2019, while there has also been a significant drop in demand for formalwear. Comparable store sales fell 14.6% during the period.

In Australia, David Jones reported a comparable sales decline of 14.6%, and in the State of Victoria, where lockdown measures were reintroduced during the period, total sales fell 76%. 

The State of Victoria lockdown had a similar effect on Country Road Group, but this was mitigated by the shift to casual wear and online shopping, particularly for the Country Road brand, which grew sales on the previous period.

Excluding Victorian stores, which traded 76.7% down on the previous period on a total sales basis, the balance of the Country Road business grew by 6.5%, aided by online sales growth of 55.7%.

 


Related Articles

Spar’s IT system failure has cost the company R...

By: IOL News Local retailer Spar has been hit hard this financial year and said on Thursday that it will have to withhold a final dividend to save cash after a huge IT system failure this year.

Tough decisions made, sets the tone for a more ...

The SPAR Group lifted turnover 10.1% to R149.3 billion (2022: R135.6 billion) for the year ended 30 September 2023. This was largely driven off the back of strong performance from the Irish business which saw growth of 21.9% in ZAR terms. Souther...

Woolies’ online grocery sales surge

By: Myles Illidge – My Broadband Woolworth’s trading update for the 20 weeks ended 12 November 2023 has revealed that the increased penetration of its Woolies Dash food delivery service resulted in a significant increase in online sales.

Dis-Chem reports group revenue growth of 9.4% t...

In the six-month period ending 31 August 2023, Dis-Chem reported Group revenue growth of 9,4% to R17.9 billion over the corresponding half year period to 31 August 2022.

Clicks shares soar as it clocks in higher marke...

By Dieketseng Maleke - IOL Clicks’ share price surged 8% yesterday after it reported record market share gains and a hike in earnings.