Woolworths record rise in losses
British retailer Woolworths today reported a recent pick-up in sales but warned it faced a battle to lure in customers over the key Christmas period.
The group, famous for its toys and pick-and-mix sweets, said same-store sales at its core chain fell by 1.7% in the eight weeks since its last trading update, compared with a previous 4.4% decline.
It came as the retailer revealed underlying losses widened by £3m (€4.44m) to £35.9m (€53.1m) in the first half of its financial year as tough trading conditions continued to take their toll on the business.
Chief executive Trevor Bish-Jones said he expected the retail environment to remain challenging.
The group, which normally makes a loss over the quieter first half of its financial year, said measures such as improving the price of its products would boost sales and profitability over the key Christmas period.
Woolworths said: “Our expectation is that consumer confidence will remain low and that customers will need to be encouraged to spend.”
The group has more than 800 stores, including a handful of out-of-town outlets.
