Woolworths sales drop
But study carried out by a leading firm of strategy consultants, confirms the Board’s belief that there is a considerable opportunity for the Group to build a sustainable value retail proposition based primarily on its small to medium sized stores.
Sales fell by 3.1 per cent during the 25 weeks to 26 July and by 6.7% on a like for like basis in the six weeks since its last update in June.
A large proportion of sales came from lower margin CD’s and DVD’s, with less from higher margin warm weather outdoor products and clothing. Woolworths Retail saw 25-week sales drop 3.2 per cent.
Richard North, Chairman of Woolworths, said: ‘The Board of Woolworths is continuing the search for a new Chief Executive to take the group on to the next stage of its development. In the meantime, we have begun the detailed work that needs to be carried out to rebuild the retail business around the core of more profitable small and medium sized stores.
‘Our EUK and 2e businesses are continuing to trade well. The retail business, however, has seen a marked worsening of conditions in June and July in an increasingly competitive market. This is reflected in the sales figures for the last six weeks. In addition, sales over the first half as a whole have been achieved with a disappointing margin performance.
