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Woolies trading update

There was a Woolworths trading update released after the market closed last evening. This was for a 20 week period, the first of the current financial year and the lead into the stronger 6 week trading period to the day after Christmas. Group sales increased by nearly 18 percent, when compared to the comparable period in 2015, excluding David Jones group sales showed a more modest 11.7 percent increase. David Jones sales increased 12.2 percent in Aussie Dollars, Country Road sales down under (Aussie) and in the land of the long white cloud (Aotearoa or New Zealand) grew 14.2 percent. In Aussie Dollar terms. Most of that was as a result of space reallocated from other brands in David Jones stores, out with the old brands and in with the Woolies brands.

Locally food sales were up 11.7 percent, sales in comparable stores increased less than 5 percent. Store space continues to grow, up over 9 percent, that is most pleasing. Woolies food rocks, although you would have noticed serious shortages on the shelves recently, not so? Still, the selection is so grand and there is plenty to choose from. The clothing division grew sales by 12.1 percent with price movement (inflation, higher prices for your Woolies winter woolies) of over 6 percent. The results seem decent at face value if not a huge blow out, ready ahead of the biggest time of the year. Results are expected to be released in the first two weeks of February, we still continue to recommend this company as our number one retail holding for local accounts.


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