Newsletter No 43 / 14 November 2025
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Woolworths defies consumer gloom as food and fashion drive sales growth
By Nompilo Zulu
A man walks past the Woolworths truck entrance in Cape Town. File picture: supplied (Reuters/Esa Alexander)
In Australia, the Country Road group’s sales grew 3.3%, showing gradual recovery
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. 
TFG navigates difficult trading conditions with steady sales performance
The Foschini Group (TFG) reported steady sales growth and a measured response to a prolonged period of difficult trading across all regions.
Group revenue for the six months ended 30 September 2025 increased by 12,2% to R31,4 billion, supported by the inclusion of White Stuff in the UK and growth in TFG Africa. Online sales rose 55,3%, now contributing 14,7% of total Group sales. Operating profit declined 9,9% to R2,3 billion, reflecting persistent macroeconomic pressures and higher promotional intensity across winter months.
The period was marked by weak and uneven consumer demand in South Africa, particularly in June and September, which impacted margins and profitability. Despite these headwinds, TFG continued to manage its balance sheet conservatively, maintain investment in strategic growth areas, and return capital to shareholders through a R1 billion share buyback and an interim dividend of 130 cents per share.
Market performance and operational response
TFG Africa delivered sales growth of 5,3% whilst holding share across the Retail Liaison Committee categories. Beauty continued to perform strongly, achieving sales growth of 23,6% supported by new ranges and store expansion.
In the UK, White Stuff performed well, contributing to a 69% uplift in segmental sales, while Australia remained subdued in line with the broader retail market.
In response to the ongoing trading pressure, TFG is taking decisive actions to enhance efficiency and strengthen financial performance. These include a review of discretionary expenditure, optimisation of trading space, tighter inventory management, and operational efficiencies across the supply chain and logistics network. These initiatives will be implemented through the second half of the financial year.
Anthony Thunström, TFG Chief Executive Officer, said:
“The macro environment has been tough for longer than anyone anticipated. June and September were particularly difficult months across our markets. In these conditions, we are focused on taking firm, practical steps to maintain financial discipline, improve efficiency, and ensure that our key growth areas continue to develop.”
“We are taking clear, deliberate actions to manage costs, optimise our store footprint, and build resilience into the business while advancing growth platforms like Bash, womenswear and beauty. Our focus is on execution and stability through this cycle.”
Outlook
TFG expects the second half of the financial year to remain constrained by weak consumer sentiment and competitive trading conditions. The Group is maintaining a sharp focus on cost control, working capital management, and capital efficiency, while continuing to invest selectively in growth categories and digital capabilities.
“Our priority for the remainder of the year is disciplined execution and efficiency,” Thunström said. “We will continue to adapt to trading conditions and ensure the Group remains well-positioned to capture opportunities as the environment improves.”
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Where do our favorite wardrobe staples come from?
The mini skirt was designed and popularized in the 1960s by Dame Mary Quant. She disliked the structured, tight garments of the 1950s, so she designed pleated miniskirts that were free and flowy.
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