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Woolies eats up market share whilst DJ drags performance


Woolies eats up market share whilst DJ drags performance
The more things change, the more they stay the same. Woolies announced its half-year results to 31 December 2020, with many of the thrills and spills of previous results announcements taking centre stage. The group’s crown jewel, Woolworths food, continues to flourish and eat up market share from competitors. This is mainly as a result of a mix of innovation and convenience, leading to this division being an industry leader. David Jones continues to be a drag on performance, with discretionary fashion spend subdued due to the economic effects of the pandemic and ensuing lockdowns. If Roy Bagattini, Woolworths CEO and ex-Levi Strauss & Co. boss can turn the tide on the high-margin clothing business, Woolworths is well positioned to benefit given the out performance of its food division. ....

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Woolworths shines as food business keeps delivering


Woolworths shines as food business keeps delivering
Trading update 
Group sales for the 26 weeks ended 27 December 2020 (‘current period’) increased by 5.3% compared to the 26 weeks ended 29 December 2019 (‘prior period’) and declined by 0.5% in constant currency terms. This reflects improved trading momentum across all businesses over the final six weeks of the reporting period versus the 20-week update published on the Stock Exchange News Service (‘SENS’) on 19 November 2020.
Trading conditions across the Group continued to be impacted by Covid-19, with significantly reduced store footfall, particularly in larger shopping centres and CBD locations. Considered actions to stimulate trade, strengthen online capabilities, manage inventory levels and execute property sales, have resulted in positive cash flows and a continued reduction in net debt levels in both South Africa and Australia. ....

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