Slower winter sales hit Woolworths clothing division
Woolworths, which has been battered by its foray into Australia, is not yet out of the woods. On Thursday the retailer reported an effective 8% drop in sales at its SA clothing operation in the 20 weeks to end-November. Woolies said sales for the first quarter “were affected by a significantly smaller winter sale”, but pointed out that sales in October, particularly in women’s wear “have shown a positive trend.” Analysts say Woolworths is struggling to find the balance between attracting new consumers and maintaining its traditional consumer base. There is a “negative momentum” when it comes to its local clothing operation, said Sasfin Bank senior equity analyst Alec Abraham. Though it was the performance of David Jones that dragged down the group in its latest set of results, its fashion, beauty and home division (which houses clothing) also disappointed, with turnover dropping 1.5% to R13.68bn the year to end-June. This division is important for Woolworths because it accounted for...
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