SOUTH African department stores chain Woolworths Holdings flagged a small fall in annual sales after its non-food stores were shut in the second-half of its financial year due to COVID-19 lockdowns.
Even before the global health crisis, South African brick-and-mortar retailers were struggling with weak consumer spending amid slowing wages growth, high utility costs and high unemployment. The pandemic has compounded these problems.
Woolworths, which also operates in Australia, said group sales for the 52 weeks ended June 28 fell 0.1% compared with a year earlier. In constant currency terms, sales declined 1.1%.
The sales performance for the second half was hit also by a drop in customer numbers as they limited trips to malls and shopping centres, with some opting just to shop online.
This pushed online food sales for the South Africa business up by 87.8%, while Woolworths Fashion, Beauty and Home online sales grew by 41.3% during
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