Woolworths Holdings has delivered marginal growth in the first 19 weeks of its 2027 financial year, as resilient South African operations helped offset continued pressure in its Australian business amid a challenging consumer environment.
The retailer reported in its trading statement a group turnover and concession sales growth of 0.2%, or 0.1% in constant currency terms, for the 19 weeks ended November 8, 2026.
Management said consumers in both South Africa and Australia remained under strain from elevated fuel prices, inflation and interest rates, leading shoppers to focus increasingly on promotions and essential purchases.
READ MORE: Woolworths grows revenue but profits slip as impairments, tax bill bite
South Africa remained the group’s strongest performer, with Woolworths South Africa turnover and concession sales increasing by 1.6% during the period.
Mzansi anchors performance
The food division recorded 1.9% growth, supported by product innovation and convenience offerings, although comparable-store sales rose just 0.1%, highlighting subdued underlying demand.
Online sales continued to gain momentum, with Woolworths Food’s online revenue surging 24.1% and contributing 9.1% of South African food sales. The company said the performance reflected investments in capacity expansion and customer experience improvements.
in2food acquisition strategic
Woolworths also confirmed the completion of its acquisition of in2food on November 5, 2026 following the fulfilment of all suspensive conditions.
READ MORE: Woolworths clears regulatory hurdle for in2food takeover
The retailer expects the transaction to support gross profit margins and help offset dilution resulting from higher fuel prices and rapid online growth.
Management described the acquisition as a strategic step in strengthening its food value chain.
The group’s Fashion, Beauty and Home (FBH) business posted a slight decline, with sales down 0.3% over the period. However, homeware sales increased 6.4%, while beauty sales rose 3.1%, partially offsetting softer fashion demand. FBH online sales grew 16.1% and contributed 7.0% of South African sales.
Mixed performance across FBH
Woolworths said ongoing efforts to optimise store productivity resulted in net trading space decreasing by 0.7% compared with the prior period. The retailer also reduced overall inventory levels as part of its efficiency drive. The move aligns with broader efforts to strengthen margins in a subdued consumer market.
Woolworths Financial Services reported year-on-year growth of 4.1% in its credit book to the end of October 2026. However, deteriorating macroeconomic conditions led to increased impairment provisioning. The annualised impairment rate for the four months ended 31 October rose to 7.3%, compared with 6.7% in the comparable period.
Credit quality under pressure
In contrast, Australia-based Country Road Group (CRG) remained under significant pressure as rising interest rates and cost-of-living concerns weighed on consumer spending.
CRG sales declined 9.5% during the period and fell 8.2% on a comparable-store basis, with all brands experiencing weaker demand.
The group nevertheless reported improved inventory levels and reduced markdowns that helped support margins.
Australia remains weak spot
Country Road Group also continued optimising its retail footprint across locations, channels and store formats, resulting in a 2.2% reduction in trading space.
Additional uncertainty emerged after David Jones, where several CRG brands operate as concession partners, was placed into administration and receivership.
Woolworths said it was engaging with the appointed receivers and managers to assess the implications for its trading relationship.
Despite subdued overall growth, Woolworths said it continues to make progress on strategic initiatives outlined in earlier results presentations.
The company plans to provide a further trading update in mid-January 2027 after the crucial festive trading season.
- Woolworths Holdings reported a group turnover and concession sales growth of 0.2%, or 0.1% in constant currency terms, for the 19 weeks ended November 8, 2026.
- Woolworths South Africa's turnover and concession sales increased by 1.6%, with food division growth at 1.9% and online food sales rising 24.1%.
- The acquisition of in2food was completed on November 5, 2026, to support gross profit margins and strengthen Woolworths' food value chain.
- Woolworths Financial Services' credit book grew by 4.1% year-on-year to October 2026, but impairment provisioning increased, with the annualised impairment rate rising to 7.3%.
- Australia-based Country Road Group sales declined 9.5% during the period, with all brands experiencing weaker demand and a 2.2% reduction in trading space.
