Woolworths Thought for food
Them Woolies results this week, and not too shabby either (have a look at our summary here). Turnover was up +9.1% YOY for the 12 months through June to R78.8bn, (including concession sales: +9.7% to R85.9bn, with growth +5.9% in constant currency), and operating profit growing a positively barnstorming +44.5% to R6.9bn. Online sales grew +117.9%, contributing 2.3% to South African Food sales, which grew +7.4% here in South Africa, to R37.7bn while sales in Fashion, Beauty and Home grew just +3.5% to R12.9bn. Unsurprisingly, perhaps, Woolies has announced plans to reduce the floor space in this underperforming business by -11% of its 2019 area. “Sustaining the momentum of our Foods business is key to our success,” says CEO Roy Bagattini. “Critical to this is a deep understanding of our customer and our ability to deliver a world-class experience, underpinned by our commitment to quality and sustainability, but also to critical back-end capabilities.” In other Woolies news, South Africa CEO Zyda Rylands is taking early retirement from the position at the end of September, and with it the role she occupies, as part of the Group’s ongoing streamlining efforts. She has, however, agreed to defer her departure and will head Woolworths Food until she leaves in 2024.
Comment: A sad loss to our industry, which suffers an ongoing dearth of women in senior leadership positions.