There are further signs of trouble in SA’s struggling retail sector, with Woolworths releasing a poor trading update that analysts say can only be a bad omen for the rest of the retailers still to release their Christmas figures. Sasfin Wealth senior equity analyst Alec Abraham said as disappointing as the update was, the blue chip retailer is likely to have done better than its peers. "It missed on sales growth and earning growth but I think it shows that the high-end consumer is more resilient. Overall it shows the extreme pressure on consumer spending." Woolworths said group sales for the first 26 weeks ended December 25 had increased 6.7% compared with the year-earlier period. The clothing and general merchandise division reported an increase in sales of 3.5%. Price movement was 7.3%. Sales in comparable stores grew 1.2% and retail space grew a net 2.9%. Food sales were 9.5% higher. Excluding new stores, food sales grew 5.6% and retail space grew a net 7.9%. Abrahams said volume...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.