Woolworths reported today a 45.4% surge in online food sales as the retailer benefited from the further rollout of its on-demand online offering.
The Woolworths Food business grew turnover and concession sales in the second quarter by 4.6%, with trading momentum improving throughout the period, as Covid-19 base effects eased.
Sales for the full year grew by 4.2%, and by 3.1% in comparable stores, reflecting the impact of the high base and the return to out-of-home consumption, an increasingly competitive backdrop, and low product inflation across our key categories.
Price movement averaged 3.5% for the full year, with underlying product inflation at 3.9%, reflecting continued price investment.
Space grew by 1.8% relative to the prior year.
Online sales increased by 45.4%, contributing 3.2% of South African sales, assisted by the further rollout of our on-demand online offering.
Expenses grew by 5.7%, primarily reflecting investment in initiatives, including online.
Woolworths FS
Meanwhile, the Woolworths Financial Services book reflects a year-on-year increase of 6.8% on 30 June 2022, driven by demand and a recovery in post-Covid-19 spending.
The impairment rate for the year ended 30 June 2022 improved to 4.7%, compared to 5.3% in the prior year, reflecting the book’s strong collections and continued strength.
Return on equity increased to 18.4%, from 13.6% in the prior year.
Woolworths FBH
The Woolworths Fashion, Beauty and Home business grew H2 turnover and concession sales by 6.5%, with full-priced sales growing by 8.8%, supported by improved product resonance, market share gains in our ‘must win’ categories, and a stronger performance from the rest of Africa.
Online sales grew by 13.2% and contributed 4.4% to South African sales.
The gross profit margin increased by 210bps to 47.6%. Expense growth was contained to 1.8%, supported by a 1.7% decline in store costs, as a result of our space reduction and cost optimisation initiatives.
