Multi-channel retailer Woolworths has shrugged off SA’s fragile consumer sentiment, posting sales growth well above inflation across its local business in the first 19 weeks of its 2026 financial year.
The retailer said on Wednesday that group turnover and concession sales for the period ended November 9 rose 6.2%, or 6.8% on a constant currency basis, despite a constrained economic environment both at home and in Australia.
Woolworths SA was again the standout performer, with sales up 7.4%. The food business, its biggest division, grew turnover and concession sales by 7.7%, supported by steady volume gains and continued innovation.
The group said food price inflation slowed to 4.6%, suggesting that most of the growth came from customers buying more rather than paying more. The chain also gained market share each month over the period, it said.
Digital sales continued to grow, with Woolies Dash up 24.2% and online contributing 7.3% to local food sales. Trading space increased by 4.8% year on year as the group expanded its store network.
In its fashion, beauty and home division, turnover rose 6.2%, indicating a turnaround in a category that has lagged in recent years.
Fashion inflation averaged only 2.2%, yet sales grew ahead of the market for six consecutive months, boosted by improved product availability and higher sell-through rates. Beauty and home stood out with double-digit gains.
In Australia, the Country Road group’s sales grew 3.3%, showing gradual recovery in a still-promotional retail market following the restructuring of underperforming brands.
Rand Swiss senior analyst Shaun Murison said the update was reassuring, showing its ability to grow despite tough conditions. He said the food business remained the standout, gaining market share and growing volumes even as inflation eases, while the fashion and home divisions show real progress after years of underperformance.
However, he cautioned that consumer credit was showing strain, with the financial services unit’s loan book contracting and impairments rising slightly. After the share price’s sharp rebound, Murison said Woolworths now looks fairly valued rather than cheap, and the current “hold” rating is justified.
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