Popular South African retailer’s shares plunge

Woolworths shares plunged 8.52% on the Johannesburg Stock Exchange (JSE) on Wednesday, 11 November, after the retailer reported barely any growth in group sales.

The share price closed at R37.78, marking its steepest one-day fall since March 2020.

The company’s latest trading update showed that group turnover and concession sales rose just 0.2% during the 19 weeks ended 8 November 2026. On a constant-currency basis, growth was 0.1%.

Woolworths said high fuel prices, inflation and interest rates continued to limit consumer spending in South Africa and Australia. Shoppers were increasingly favouring essential purchases and promotional offers.

Its South African business recorded turnover and concession sales growth of 1.6%, but results varied considerably between divisions.

Food sales barely grow at existing stores

Woolworths Food reported total sales growth of 1.9%. However, sales at comparable stores increased by only 0.1%, despite average price movement of 3%.

Comparable-store figures help show how existing outlets are performing without the effect of newly opened stores. The gap between sales growth and price movement suggests pressure on the quantity of goods sold, although the trading update does not provide a separate measure of volumes.

Food trading space also increased by 2.7% compared with the corresponding period a year earlier.

Country Road Group struggles in Australia

Woolworths’ Australian Country Road Group recorded a 9.5% drop in sales, including an 8.2% decline at comparable stores.

The retailer pointed to weak consumer sentiment, reduced foot traffic and widespread discounting across Australia’s retail sector.

Uncertainty has also emerged over the group’s relationship with David Jones, the Australian department store chain placed into administration and receivership. Several Country Road brands operate concessions inside David Jones stores.

Woolworths said it was assessing what the development means for their continued trading relationship.

Where is Woolworths still growing?

Online food sales increased by 24.1%, contributing 9.1% of South African food sales during the period.

The retailer has been expanding Woolies Dash, including a dedicated fulfilment centre in Cape Town intended to improve delivery speed and product availability.

Woolworths also completed its acquisition of food manufacturer in2food on 5 November. The company expects the transaction to support food profit margins as it manages higher fuel costs and the expansion of online sales.

Elsewhere, homeware sales rose 6.4% and beauty sales increased 3.1%, although the broader Fashion, Beauty and Home division recorded a 0.3% decline.

The retailer’s financial services business also faced pressure, with its annualised impairment rate rising from 6.7% to 7.3% for the four months ended October.

What happens next for Woolworths?

Group CEO Sam Ngumeni, who succeeded Roy Bagattini after a leadership change this year, is overseeing the retailer’s strategic plans.

Woolworths expects to issue another trading update in mid-January 2027, after the festive shopping period. That announcement should provide a clearer indication of whether sales have improved in South Africa and Australia.