Woolworths, the South African luxury department chain store, has announced a 4.7% increase in its turnover and concession sales from continuing operations for the 20 weeks ended November12, 2023. Despite challenging market conditions, including interest rate increases and higher living costs, the company is confident in its performance.
Woolworths attributes its success to its strong positioning in the market and the resilience of its strategy, which has enabled it to weather external factors such as the Western Cape taxi strike, congestion at the ports, and the impact of Avian flu on key product lines.
Woolworths acknowledges that its performance should also be viewed in the context of the high prior-year base, in which sales grew by 13.4%.
While the Country Road performance was impacted by a challenging macro environment, the Food business continued to perform well, with strong comparable store sales growth and a 46.2% increase in online sales.
The Fashion Beauty and Home business also made steady progress, with the team focusing on improving the operational health of the business.
Overall, Woolworths’ update on trading is a positive one, demonstrating the company’s ability to navigate difficult market conditions and maintain its strong position in the industry. With a focus on improving operational health and continuing to grow its online sales, Woolworths is well-positioned for future success.