Woolworths pivots strategy toward food amid retail pressure

Woolworths is shifting its strategic focus toward its food division to combat retail pressures caused by rising living costs and changing consumer spending patterns. In South Africa, Woolworths Food reported a 5.7% growth in turnover and concession sales for the 52 weeks ending June 28, 2026, with comparable-store sales increasing by 3.7%. CEO Sam Ngumeni noted that while the results show business resilience, the company is moving to unlock greater value across the group.

The group's annual headline earnings per share rose 5.3% to 282.3 cents, while total turnover and concession sales reached R84.5 billion. Online demand has also grown, with Woolies Dash revenue increasing by 19.6%. In contrast, the Fashion, Beauty and Home division saw slower growth in the second half of the year due to weaker demand.

In Australia, Woolworths Group Ltd remains a dominant market player with over 3,000 stores across Australia and New Zealand. The company maintains a significant market share in Australian groceries, which serves as a primary revenue driver. The group also operates Big W discount department stores and B2B brands like PFD Food Services.