Woolworths has reported higher 18-week sales as consumer sentiment improves in SA.
Turnover and concession sales for the 18 weeks ended November 3 increased by 6.5% and by 6.8% on a constant currency basis, the group said on Monday.
It noted that while discretionary spend remained relatively constrained in SA, consumer sentiment was improving, supported by moderating inflation, the start of easing interest rates, and the suspension of load-shedding.
In Australia, however, the sustained effect of high interest rates and elevated living costs continued to weigh on both retail footfall and spend.
Woolworths' food business delivered turnover and concession sales growth of 12.1% and 7.3% on a comparable-store basis. That was driven by positive underlying volume growth on improved availability, ongoing innovation and its enhanced overall value proposition.
Excluding Absolute Pets, which was acquired in the fourth quarter of the previous financial year, food sales increased by 9.6%.
Price inflation for the period averaged 6.2% with trading space, excluding Absolute Pets, increasing by 2% on the prior period.
Online sales increased by 36.9%, contributing 6.2% of food sales, driven by the group’s on-demand offering, Woolies Dash, which delivered sales growth of 54.4%.
Fashion, beauty and home (FBH) momentum has accelerated, with turnover and concession sales increasing by 3.5% and by 2.8% on a comparable-store basis.
The first 18 weeks of sales include the fashion winter clearance, which constitutes a high proportion of the trade for the period.
Beauty delivered accelerating sales momentum, growing by 20.6%.
In line with the strategy to rationalise unproductive space, net trading space decreased by 1.8%, while online sales increased by 36.5% and contributed 6.5% of FBH sales.
The Woolworths financial services book at the end of October 2024 was 3.5% below last year, year on year, and up 2.1% excluding legal book debt sales.
The annualised impairment rate for the four months ended 31 October 2024 was 5.9%, compared to 7.5% in the prior period.
In the Country Road Group (CRG) division, trading conditions in Australia and New Zealand continue to prove more challenging than anticipated, with the retail sector facing further declines in footfall, intense promotional activity, and the shift of spend towards value brands.
CRG sales declined by 8.8% for the period and by 13.8% on a comparable-store basis.
“Notwithstanding the challenging macroeconomic backdrop, the Country Road brand remains resilient, and Trenery is delivering strong top-line growth, following the repositioning and rebranding of its offering. We remain focused on improving the positioning and performance of the other brands, particularly Witchery, which are at different stages of their respective repositioning,” the group said.
Trading space decreased by 1.6%, while online sales contributed 26.6% of total sales.
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