Woolworths online food sales up 118%

A pandemic-led boom in online shopping in South Africa has seen Woolworths report a 118% increase in online food sales in the 52-week period to 27 June.

“Online sales grew by 117.9% over the current year, contributing 2.3% to our South African food sales. This was further supported by the expanded click-and-collect offering and the roll-out of our on-demand delivery service, Woolies Dash,” the retailer said in a trading statement yesterday.

Online sales in the Woolworths Fashion, Beauty and Home business also grew spectacularly – up by 114.4% year-on-year – as consumers shunned physical stores in favour of online shopping.

However, this segment was negatively impacted by the constrained economic environment, the decline in demand for formalwear and initiatives to streamline private label offerings and rationalise unproductive space.

The retailer published a trading statement for the period and provided investors with an update on the impact of the anarchy that took place in KwaZulu-Natal and some parts of Gauteng last week.

It said the violence had a “significant impact on our operations in these areas, particularly in KZN”.

“All of our stores in KZN, as well as a number of stores in Gauteng last week had to temporarily close. Our online delivery services and certain suppliers in those areas are also significantly affected, given the significant damage to their assets.

“Eleven Woolworths stores have been looted and severely damaged, with nine of the 11 stores in KZN and two in Gauteng.”

Looters also gained entry to Woolworths’ Maxmead distribution centre in KZN, although the infrastructure was not severely damaged.

“Operations have resumed and we have prioritised the provision of food into KZN.”

The violence adds to an already depressed retail environment caused by the latest lockdown to curb Covid. “The consequential level 4 restrictions have further dampened already-weak consumer confidence, which is expected to limit discretionary spend,” Woolworths said.

Group sales for the 52 weeks ended 27 June, increased by 9.7% compared to the 52 weeks ended 28 June 2020 and by 5.9% in constant-currency terms.