Woolworths: Resilience in food sales despite declining group earnings

WOOLWORTHS Food division delivered above-market performance, reinforcing its position as a leading South Africa food retailer, after its turnover and concession sales grew by 11% for the year to June 29.

- EDWARD WEST

This was even though the South African retailer on Wednesday reported a 23.9% decline in full-year headline earnings, due to a weaker than expected performance from its Australian clothing chain Country Road Group (CRG), which underwent a significant restructure.

The Foods division reported sector-leading growth of 7.7% on a comparable-store basis. Excluding the Absolute Pets acquisition, Food sales grew by 9.2%, highlighting strong momentum in the core business.

Volume growth was driven by increased footfall and larger basket sizes, supported by an innovation pipeline and enhanced customer experience, the group directors said in its financial results that were released on Wednesday.

“This year’s results reflect the strength and resilience of our premium Food business, but also the transformation undertaken across our apparel businesses. Following significant investment over the past few years, we have completed the heavy lifting, which now positions each of our businesses to deliver to their true and full potential through our loved and trusted brands,’ Roy Bagattini, the CEO, said in a statement.