August 01 2007

Multi-channel Woolworths showing good performance

The "good performance" of its multi-channel offer has helped Woolworths increase like-for-like sales for the eight weeks to 28 July by 3.7%. This brings the cumulative position for the half year to +0.7% like-for-like.

Sales of DVDs have been higher than anticipated, in part because of the unseasonable weather, with third party sales through its distribution arm Entertainment UK increasing by 36.2% over the 25 weeks.

Sales of 'indoor' products have improved at the expense of 'outdoor' products. The books market overall continues to perform solidly.

The company reports that margin delivery continues to be in line with internal targets and stock levels continue to reduce year-on-year as it improves supply chain efficiency.

Chief Executive, Trevor Bish-Jones, said: "Whilst we are encouraged by the sales performance across the Group to date, we are mindful that the retail like-for-like performance is against weak comparatives and we continue to be cautious about the retail environment going forward. We remain focussed on running the business tightly, concentrating on cash generation, control of costs and improving margins."

Emma Herrod