Despite tough market conditions.
Woolworths Holdings Limited group sales increased by 17.1% (12.3% excluding David Jones, which was acquired on 1 August 2014), for the 26 weeks ended 26 June 2016, despite challenging trading conditions in both South Africa and Australia.
David Jones had a strong first half performance with improved merchandising and the expansion of the Group’s private label brands across the chain. Sales (including concession sales) grew by 11.2% on a 26-week basis, well ahead of both the Australian department store and specialty clothing market. Sales in comparable stores grew by 9.7%. Despite the inclusion this year of July, a clearance month, significant once-off costs associated with the launch of private label and other transformation projects, the contribution to profit across the Group from David Jones increased by 19%.
In an official statement, the company commented, “As a result of the deterioration in the outlook for the global economy, conditions are expected to become more difficult both in South Africa and Australia. Increasing interest rates in South Africa will add further pressure on the local consumer.
“Our response in both markets is to ensure that we offer our customers value and quality across our brands, products and services, as well as focus on costs and efficiencies. In the long term, our strategies remain focused on delivering sustainable profit growth in all the markets in which we trade. Trading for the first six weeks in the second half of the financial year has been in line with that of the first half.”