Woolworths reports muted sales growth after Covid-19 hit

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Woolworths reports muted sales growth after Covid-19 hit
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Sales picked up in second half but group took knock from extended lockdowns in Australia

High-end food and clothes retailer Woolworths says while sales picked up in its second half after Covid-19 lockdowns in Australia turnover grew a subdued 1.4% in its 2022 year.

Lockdowns in Australia had required store closures affecting 70% of the group’s brick-and-mortar store base, while SA’s civil unrest also had its effects, the firm said, along with load-shedding and rising interest rates. Fashion, beauty and home grew full-year sales by 5.4%, even though trading space fell 4.5%, with this business supported by new winter ranges and market share gains, Woolworths said. It had also seen a stronger performance from the rest of Africa.

David Jones’s second half sales had risen 4.3%, the retailer said on Tuesday, with trading space falling 2.6% year on year.Woolworths has struggled in Australia with its David Jones business, and its share had lifted earlier in 2022 after media reports suggested it was looking to sell it.

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