Woolworths South Africa delivered a 1.6% increase in turnover over 19 weeks, outperforming its Australian-linked retail operations as weakening consumer spending and the collapse of department store David Jones added pressure to the wider group.

The South African retailer’s performance was supported by its food, homeware and beauty businesses, although fashion, beauty and home sales remained uneven. Across the Woolworths Group, turnover rose just 0.2% in the period ended November 9, while concession sales increased 0.1%.

The figures highlight the contrasting performance of the group’s operations in its two major markets, with its Australian Country Road Group recording a 9.5% sales decline as households cut discretionary spending amid higher living costs and interest rates.

Australian retail troubles weigh on group

Country Road Group’s decline presents a significant challenge for Woolworths, particularly as several of its brands operate concessions inside David Jones stores in Australia. David Jones entered administration and receivership on November 5, following its collapse under financial pressure.

McGrathNicol executives were appointed as voluntary administrators, leaving uncertainty over the future of the department store’s trading relationships with suppliers and concession operators.

Woolworths, which previously owned David Jones before selling it to Anchorage Capital Partners in 2023, said it was communicating with the appointed receivers and managers to assess the implications for its Country Road brands.

The company has yet to clarify how the administration process could affect the continued operation of those concessions. The pressure on Country Road Group also reflects weaker consumer confidence, reduced store traffic and aggressive discounting across Australia’s retail sector.

Woolworths attributed the 9.5% sales contraction to the rising cost of living and higher interest rates, which have encouraged consumers to reduce discretionary purchases.

Food and homeware support South African sales

In South Africa, the food division provided a stronger source of growth, recording a 1.9% increase in comparable-store turnover and concession sales, although concession sales alone grew by just 0.1%.

The retailer also completed its acquisition of In2Foods on November 5, 2026, after fulfilling the transaction’s outstanding conditions.

The acquisition is expected to support gross profit margins and help offset cost pressures arising from higher fuel prices and the expansion of online sales.

Woolworths’ fashion, beauty and home division faced a more difficult period, with comparable-store turnover and concession sales declining by 0.3%.

However, two categories delivered positive performances. Homeware sales increased by 6.4%, supported by an expanded product offering, while beauty sales grew by 3.1% despite intensifying competition.

The beauty market has attracted increased attention from South African retailers, including Clicks, which acquired a majority stake in ARC, and Pick n Pay, which introduced its own-brand beauty and cosmetics products.

Festive trading to provide next test

Woolworths said high fuel prices, inflation and interest rates continued to restrict household spending in South Africa and Australia, with shoppers increasingly favouring promotions and essential purchases.

The festive season will provide another indication of whether the retailer can improve sales performance across its businesses, particularly in Australia, where Country Road Group faces both weaker demand and uncertainty surrounding David Jones.

Woolworths plans to release its next trading update in mid-January 2027, after the festive shopping period.