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For the latest regarding Woolworths financial results (21 Feb 2019) click here
About Woolworths
The first Woolworths store opened its doors to the public in Cape Town in October 1931. And it was founder Max Sonnenberg who captured the public’s imagination with dynamic store policies that set Woolworths apart from its competitors. Three years later, a second branch opened in Durban, with another two in Port Elizabeth and Johannesburg a year later. And since then we’ve been building on our reputation for superior quality, exciting innovation and excellent value.
At Woolworths we take our business values seriously. They aren’t just words in an annual report - they are the foundation of our business. They give us direction and guide our behaviour, actions and choices. In fact, our values are so important to us that we’re measured not only on our performance, but also by how well we live up to them.
- FIRST TO OFFER EMPLOYEE BENEFITSKeen to attract and retain the best retail professionals, Woolworths was among the first local retailers to offer employees a pension fund, medical aid and maternity leave.
- FIRST IN ADVANCING TECHNot just a forward thinking employer, Woolworths was also an early adopter of technology. A lease agreement for the first computer was agreed to with National Cash Registers (NCR) in the late 60s and Woolworths was already using a computerised merchandising system by the early 1970s.
- FIRST TO INTRODUCE SELL BY DATESThis dynamic thinking extends to Woolworths product offering. In 1974, Woolworths became the first South African retailer to introduce ‘sell by’ dates on food packaging. Convenience, too, has long been a watchword at Woolworths - we were the first South African retailer to offer pre-washed lettuce and machine-washable wool clothing to consumers.
- OUR GOOD BUSINESS JOURNEYIn April 2007, we launched our Good Business Journey – a bold plan to make a difference in eight key areas on our journey towards sustainability: Energy, Water, Waste, Sustainable Farming, Ethical Sourcing, Transformation, Social Development and Health and Wellness. Read more about our Good Business Journey
At Woolworths we take our business values seriously. They aren’t just words in an annual report - they are the foundation of our business. They give us direction and guide our behaviour, actions and choices. In fact, our values are so important to us that we’re measured not only on our performance, but also by how well we live up to them.
- QUALITY AND STYLE - DELIVER THE BESTIt means giving 100%, 100% of the time. Whether it’s making sure that a supplier is delivering to the standards we set or preparing a report, it all boils down to one thing: there’s no compromising on quality, because ‘good enough’ just isn’t good enough.
- VALUE - A SIMPLE AND FAIR DEALOffering real value goes beyond offering our customers quality at a good price: it also means offering value to each other, from sharing our knowledge with colleagues and suppliers to being able to evaluate how the decisions we make affect the business.
- SERVICE - WE ALWAYS THINK CUSTOMERAt Woolies, we know that we have to go that bit further to really make a difference. Putting the customer first is what service is all about. Whether your customer is a shopper in our stores or the store manager who needs a vital delivery, service is about understanding others’ needs, being willing to do more than is expected, and being a good ambassador for the Woolies brand.
- INNOVATION - DISCOVER THE DIFFERENCEWe do it for our customers. We love discovering new ideas, new products and new processes. We enjoy thinking ‘out of the box’ and finding solutions that benefit the business.
- INTEGRITY - DOING WHAT YOU SAY YOU WILL DOKeeping our promises is important to us, whether it’s maintaining confidentiality, not accepting gifts from suppliers, or simply listening to what others have to say with an open mind. By being true to ourselves, we earn the trust of our colleagues and our customers.
- ENERGY - BE PASSIONATE AND DELIVERWhen you’re passionate about what you do, when you really care, your enthusiasm and belief rub off on others. At Woolies, you’re part of a 23 000-member team. Being part of a team means being an inspiration to others and being inspired by their successes and triumphs.
- SUSTAINABILITY - BUILD FOR A BETTER FUTUREWhile you may be familiar with some of our environmental and conservation projects, for us in a South African, and African, context, sustainability isn’t just about being ‘green’. It’s about sharing expertise, helping local enterprises to grow, and contributing to a prosperous, secure future for our country. Please see more about our Good Business Journey.
Woolworths East London 1948
Trading Statement
The following was published on the JSE Security Exchange News Syteme (SENS) system earlier today
"TRADING UPDATE: 20 WEEKS ENDED 11 NOVEMBER 2018 AND TRADING STATEMENT: 26 WEEKS ENDED 23 DECEMBER 2018 AND 53 WEEKS ENDED 30 JUNE 2019
TRADING UPDATE
Group sales for the first 20 weeks ended 11 November 2018 (‘current period’) increased by 2.7% compared to the 20 weeks ended 12 November 2017 (‘prior period’) prior period (and by 3.6% in constant currency).
In South Africa, Woolworths Fashion, Beauty and Home sales declined by 3.3%, with price movement of 4.0%. Comparable store sales were 3.9% lower, with net retail space growth of 0.5%. While sales for the first quarter ended 23 September 2018 were affected by a significantly smaller winter sale, regular sales in October, particularly in womenswear, have shown a positive trend.
Woolworths Food sales increased by 7.2%, with volume growth driven by low inflation (price movement was 1.0%) and higher levels of promotion. Comparable store sales increased by 5.0%, with net retail space growth of 1.5%.
The Woolworths Financial Services debtors book reflected positive year-on-year growth of 4.0% as at the end of October 2018. The annualised impairment rate for the four months ended 31 October 2018 was 3.9% (4 months ended 31 October 2017: 5.7%). The Group implemented IFRS 9 with effect from 1 July 2018.
David Jones sales momentum has continued into the new financial year, with sales increasing by 2.9% (and by 2.4% in comparable stores). Online sales have grown by 48.4%, and now contribute 5.2%, up from 3.6% of sales in the prior period. Net retail space grew by 2.7%, with 3.4% new space offset by 0.7% of space reductions and closures.
Country Road Group (CRG) sales increased by 3.4%, and by 0.5% in comparable stores. Online sales in CRG represent 20% of sales, with growth of 25% over the period. Net retail space grew by 4.3%.
TRADING STATEMENT
Shareholders are advised that earnings per share (EPS) is expected to be more than 100% (more than 505.9 cents) higher than the reported EPS for the 26-week period ended 24 December 2017 (2017 EPS: -505.9 cents), and more than 150% (more than 554.3 cents) higher than the reported EPS for the 52- week period ended 24 June 2018 (2018 EPS: -369.5 cents), due to the impairment of the carrying value of the David Jones assets in the prior period ended 24 December 2017.
Shareholders are advised that once the Group obtains reasonable certainty regarding the HEPS growth ranges for the 26 weeks ended 23 December 2018 and 53 weeks ended 30 June 2019, it will issue a further trading statement in order to provide guidance.
CONSTANT CURRENCY INFORMATION
The constant currency information contained in this announcement has been presented to illustrate the impact of changes in the Group’s major foreign currency, the Australian dollar. In determining the constant currency turnover and concession sales’ growth rate, turnover and concession sales denominated in Australian dollars for the current financial reporting period have been adjusted by application of the aggregated monthly average Australian dollar exchange rate for the prior comparable period. The foreign currency fluctuations of our rest of Africa operations are not considered material, and have therefore not been applied in determining the constant currency turnover and concession sales growth rate. The aggregated monthly average Australian dollar exchange rate is R10.30 for the current financial reporting period and R10.52 for the prior comparable period. The constant currency information, which is the responsibility of the Group's directors, has been prepared for illustrative purposes only, and may not fairly present the Group’s financial position, changes in equity, cash flows or results of operations. The information contained in this announcement, including forecast financial information, has not been reviewed or reported on by the Group’s external auditors."
End SENS announcement
"TRADING UPDATE: 20 WEEKS ENDED 11 NOVEMBER 2018 AND TRADING STATEMENT: 26 WEEKS ENDED 23 DECEMBER 2018 AND 53 WEEKS ENDED 30 JUNE 2019
TRADING UPDATE
Group sales for the first 20 weeks ended 11 November 2018 (‘current period’) increased by 2.7% compared to the 20 weeks ended 12 November 2017 (‘prior period’) prior period (and by 3.6% in constant currency).
In South Africa, Woolworths Fashion, Beauty and Home sales declined by 3.3%, with price movement of 4.0%. Comparable store sales were 3.9% lower, with net retail space growth of 0.5%. While sales for the first quarter ended 23 September 2018 were affected by a significantly smaller winter sale, regular sales in October, particularly in womenswear, have shown a positive trend.
Woolworths Food sales increased by 7.2%, with volume growth driven by low inflation (price movement was 1.0%) and higher levels of promotion. Comparable store sales increased by 5.0%, with net retail space growth of 1.5%.
The Woolworths Financial Services debtors book reflected positive year-on-year growth of 4.0% as at the end of October 2018. The annualised impairment rate for the four months ended 31 October 2018 was 3.9% (4 months ended 31 October 2017: 5.7%). The Group implemented IFRS 9 with effect from 1 July 2018.
David Jones sales momentum has continued into the new financial year, with sales increasing by 2.9% (and by 2.4% in comparable stores). Online sales have grown by 48.4%, and now contribute 5.2%, up from 3.6% of sales in the prior period. Net retail space grew by 2.7%, with 3.4% new space offset by 0.7% of space reductions and closures.
Country Road Group (CRG) sales increased by 3.4%, and by 0.5% in comparable stores. Online sales in CRG represent 20% of sales, with growth of 25% over the period. Net retail space grew by 4.3%.
TRADING STATEMENT
Shareholders are advised that earnings per share (EPS) is expected to be more than 100% (more than 505.9 cents) higher than the reported EPS for the 26-week period ended 24 December 2017 (2017 EPS: -505.9 cents), and more than 150% (more than 554.3 cents) higher than the reported EPS for the 52- week period ended 24 June 2018 (2018 EPS: -369.5 cents), due to the impairment of the carrying value of the David Jones assets in the prior period ended 24 December 2017.
Shareholders are advised that once the Group obtains reasonable certainty regarding the HEPS growth ranges for the 26 weeks ended 23 December 2018 and 53 weeks ended 30 June 2019, it will issue a further trading statement in order to provide guidance.
CONSTANT CURRENCY INFORMATION
The constant currency information contained in this announcement has been presented to illustrate the impact of changes in the Group’s major foreign currency, the Australian dollar. In determining the constant currency turnover and concession sales’ growth rate, turnover and concession sales denominated in Australian dollars for the current financial reporting period have been adjusted by application of the aggregated monthly average Australian dollar exchange rate for the prior comparable period. The foreign currency fluctuations of our rest of Africa operations are not considered material, and have therefore not been applied in determining the constant currency turnover and concession sales growth rate. The aggregated monthly average Australian dollar exchange rate is R10.30 for the current financial reporting period and R10.52 for the prior comparable period. The constant currency information, which is the responsibility of the Group's directors, has been prepared for illustrative purposes only, and may not fairly present the Group’s financial position, changes in equity, cash flows or results of operations. The information contained in this announcement, including forecast financial information, has not been reviewed or reported on by the Group’s external auditors."
End SENS announcement
So Woolworths Fashoin, Home and Beuaty segment sales have declined, while Woolworth Foods sales grew strongly. It is becoming more and more evident that Woolworths is becoming a food retailer with a bit of clothing sales on the side, instead of a clothing retailer with a food division.