The trading updates on Shoprite, Woolworths, and Massmart met with a mixed reception from shareholders. These shareholders had pinned their hopes on the elasticity of the biggest retail chains of South Africa, regardless of power outages and job losses.
Woolworths climbed to an intraday high of US$8.151 at 6.5%, whereas, Shoprite saw a decline of 2.7% to an intraday low of US$13.512.
Woolworths is going to publish its financial report on August 27, 2015. The company stated that its comparable food sales saw a 6.6% development in the 52 weeks till June 28 and comparable clothing sales witnessed a rise by 4% during the same time period. The turnover for Shoprite grew by 4.3% over the previous year, the company said in a statement.
Woolworths procured David Jones, the Australian department store chain, effective from August 1, reported total group sales rose 54.9% including David Jones and 12% without the acquisition. The sales of the food division rose by 13.5%, whereas, the prices increased by 7.7%. The retail space, comprising of stores in Africa, which are set outside South Africa, grew by 10% ill closure excluding the conversions of franchises.
The clothing sales of Woolworths in South Africa rose up to 9.6%, while the total growth of the retail space was 7.1%. In comparable stores, the sales of general merchandise increased by 7.7% and 5.6%. The sales of David Jones for the overall year increased to 6.4% in AUD terms including concession stores. In comparable stores, it showed upward movement by 3.7%.
According to Ms. Meryl Pick, a retail expert at Old Mutual Equities, the trading update on Woolworths was more than what analysts have expected, specially the performance of David Jones, which reported growth by 2% in the first half and 6% in the overall year.