Woolworths Holdings Limited has delivered a robust trading performance for the first 19 weeks of its financial year, demonstrating resilience amid constrained consumer sentiment. The retailer’s group turnover and concession sales grew by 6.2%, a figure that rises to 6.8% on a constant currency basis, signalling positive momentum across its operations in both South Africa and Australia.
The standout driver of this growth was the remarkable performance of its on-demand delivery service, Woolies Dash, which saw sales surge by 24.2%. This vigorous expansion has cemented the online channel’s strategic importance, now contributing 7.3% to the group’s South African Food sales. According to the KPMG South Africa Consumer Markets Review, the rapid normalisation of quick-commerce platforms is fundamentally reshaping the grocery retail landscape, a trend Woolworths is capitalising on effectively.
In South Africa, the Food business remained the primary engine of growth, with turnover increasing by 7.7%. The company reported consistent market share gains and positive volume growth, indicating that customers are buying more items rather than simply paying higher prices. This was supported by a declining rate of food price inflation, which averaged a more manageable 4.6% for the period. The group’s Fashion, Beauty and Home division also showed encouraging signs of a turnaround, with sales increasing 6.2%. Within this segment, the Beauty and Home businesses were particularly strong, delivering growth of 9.6% and 13.8% respectively.
The positive results come against a backdrop of significant pressure on South African households. As reported by the Bureau for Economic Research, consumer confidence remains fragile due to persistent cost-of-living challenges. Despite this, Woolworths has managed to grow its fashion sales ahead of the market for six consecutive months, a feat it attributes to improved product availability and higher sell-through rates, with fashion inflation averaging a modest 2.2%.
Internationally, the Country Road Group in Australia recorded a sales increase of 3.3%. The group described the operating environment as challenging and highly promotional, making this growth a credible achievement. The performance indicates a gradual recovery following a strategic restructuring of underperforming brands within the portfolio.
On the financial services front, the Woolworths Financial Services book decreased by 2% year on year, though it increased by 1.5% when excluding the sale of a portion of its legal book. The group confirmed its annualised impairment rate saw a marginal increase to 6.7%, but maintained that it remains a sector-leading metric. Demonstrating confidence in its financial health and future prospects, the group also confirmed the commencement of a share buyback programme, repurchasing 6.9 million shares at an average price of R51.22 each. A further trading update is expected in mid-January 2026, providing insight into the crucial festive season performance.