Woolworths Food continues to lead the group's growth. Picture: Supplied
Woolworths’ food business continues to be the biggest contributor to the group’s turnover and sales growth.
While discretionary spending remains constrained in South Africa, Woolworths Holdings Limited’s trading statement for the 26 weeks ended 29 December 2024 shows that consumer sentiment is improving, supported by moderating inflation, easing interest rates, and the prolonged suspension of load-shedding.
The group’s turnover and concession sales for that period increased by 5.7% and 6.2%, respectively.
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The group’s trading performance for the half reflects continued strong sales growth from its leading Food business.
Woolworths Holdings Limited said its apparel businesses in South Africa, Australia, and New Zealand contributed less to the group’s strong sales.
“Both our Fashion, Beauty and Home (FBH) and Country Road Group (CRG) businesses are in the throes of significant transformation, which negatively impacted performance during the period.”
The group said the Food business in SA delivered “market-leading” turnover and concession sales growth of 11.4% and 7.3%, respectively, on a comparable-store basis.
Woolworths SA turnover and concession sales growth of 9.1% during the 26-week period.
“This was driven by positive underlying volume growth from improved availability, ongoing innovation, and our enhanced value proposition, reinforcing the trust that customers continue to place in our Woolies brand.”
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“Excluding Absolute Pets, which was acquired in the fourth quarter of the previous financial year, Food sales increased by 9.0%,” reads the statement.
Online sales increased by 37.2%, contributing 6.4% of Food sales, driven by Woolies Dash, which delivered sales growth of 49.2%.
FBH turnover and concession sales increased by 2.5% and 2.7% on a comparable-store basis.
The group attributed the sales growth constraints to temporary delays in product flow arising from late supplier deliveries and process and system changes in its distribution centre.
“Following the sale of David Jones (DJ) in the 2023 financial year and the successful separation of CRG from DJ in the 2024 financial year, CRG is currently amid a significant restructuring to reconfigure its operating model and reset its structural economics as a standalone business.”
The group said that while the restructuring is on track to be completed before the 2025 financial year end, this accelerated timeframe necessitated increased internal focus during the period.
In addition, the apparel trading environment in Australia and New Zealand remains promotional, driven by price-sensitive consumers.
Within this context, sales declined by 6.2% for the period and 7.8% on a comparable-store basis.
“Trade performance in the last eight weeks of the period, particularly over Black Friday, Cyber Monday and the festive season, improved over the previous eighteen weeks, with sales growth declining by a lesser 2.7% on the prior period.
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