Advertise with

Group sales increased 9.4% for the year ended June 26 2011
Group sales increased 9.4% for the year ended June 26 2011

Woolworths profit to jump


Fin24 - Jul 19th 2011, 09:23

Johannesburg - Retailer Woolworths Holdings has reported group sales increased 9.4% for the year ended June 26 2011, with sales in comparable stores up 6.3%. 

"We expect that both earnings per share and headline earnings per share for the year will be between 20% and 30% higher than the corresponding reporting period," the group said in a trading update on Tuesday.

The group said clothing sales in South Africa increased 11.5% (9.4% in comparable stores) and food sales increased 10.7% (8.4% in comparable stores). General merchandise growth was impacted by the rationalisation of the cellular handset business in the first half of the year. Excluding this rationalisation, general merchandise grew 5.2% (5.1% in comparable stores).

SA retail space grew 7.6%, which included 22,850m2 of franchise conversions, which largely occurred towards the end of the year. Excluding these conversions, corporate space in South Africa grew 2.1%.

Sales in Australia through the group's Australian subsidiary Country Road contracted 2% as the Australian retail environment continues to struggle, with comparable sales down 10.9%. Store expansions and the continued roll out of Trenery-branded stores resulted in space growth of 9.3% in Australia.

The Woolworths financial services closing debtors' book was 4.8% up on last year. The impairment charge as a percentage of average gross receivables was 1.4 % (2009: 5.1%).

Woolworths results for the year are due to be released on or about August 25 2011.

Shares of Woolworths, which this month hit a lifetime high, are up nearly 15% so far this year, outpacing the all-share index which is lower on the year.  

Read more about: woolworths | retailers | fmcg | financials | analysis

Related News

Woolworths carves out market share in SA
27/11/2019 - 10:11
In Australia, David Jones's sales declined 2.1%, with the company saying a store refurbishment contributed to the decline.

Push and pull strategies work together to keep consumers coming back for more
26/11/2019 - 10:20
The retail sector is under increasing pressure as consumers have shrinking disposable income in a strained economy. Maintaining share of wallet is critical. Relying solely on a push route to market strategy from manufacturers into retailers is not enough to get consumers buying products. A pull strategy needs to coexist with the push to drive brand consumption. Integrating these strategies requires intelligent and insightful decision-making. This, in turn, requires data generated through smart technology which provides line of sight across the value chain from manufacturer to distribution, retailer to the consumer.

Exclusive leases must fall: Commission cracks whip on Shoprite, Pick n pay, Spar, Woolies
26/11/2019 - 09:57
The Competition Commission Inquiry into Grocery Retail, published on Monday, called for an end to the exclusive leases negotiated by national retail chains in all shopping malls across the country in a bid to open up access to markets for smaller players.

Today’s customers are loyal to speed and convenience, not brands
25/11/2019 - 11:15
Consumer expectations are rapidly shifting as technologies such as mobile, geolocation, social media and increasingly, Internet of Things devices and wearables, connect people to a world of easily accessible information and convenient services. With the ability to browse, compare and order with a few swipes and taps, consumers are becoming trained to value convenience and service above nearly anything else.

Gearing FMCG manufacturing for the red season spike and maximising profits all year round
25/11/2019 - 11:03
As we enter the festive season, demand for Fast-Moving Consumer Goods (FMCG) increases rapidly, often leaving manufacturers scrambling to fulfill orders from their distribution channel. If demand cannot be met, then loss of revenue is inevitable. However, over-production is not an ideal solution either, as it can leave manufacturers sitting with unsold stock that costs money to store.