TRADING UPDATE
Woolworths sales feel the squeeze
Woolworths is battling a tough economic environment in both Australia and SA, putting pressure on sales. After posting its trading update, which showed a 2.6% growth in overall sales, the group’s share price declined as much as 5% before recovering to close 2.41% lower at R53.75. Woolworths has three operating subsidiaries — Country Road Group, Woolworths and David Jones, which was acquired in 2014 for R23.3bn. Its David Jones sales declined by 5.3% in the 20 weeks ended November 12, the group said. The company was struggling because of its “questionable business model”, Vele Asset Managers equity analyst Matthew Zunckel said. Consumers globally were trending towards online and specialty retail, yet David Jones remained a department store, Zunckel said. The management of Woolworths could tweak this over time with the introduction of food, but that would take a lot of time and investment, he said. In Australia, the group opened eight new Politix locations within David Jones stores an...
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.