UK sweets-to-DVDs retailer Woolworths said that trading over the key Christmas period was 'very challenging', but that it expected its retail unit to return to profitability this year.
Woolworths, a fallen titan of the British high street with more than 800 stores, said today that retail like-for-like sales fell 3.2% in the 49 weeks to January 12, having fallen 0.4% in the 38 weeks to October 27.
The retailer had said at the end of October that it expected like-for-like sales growth to be 'flattish' for the full year. 'Christmas was a very challenging time for the group,' CEO Trevor Bish-Jones said in a trading update.
Woolworths said the fall in retail like-for-like sales reflected its strategy of focusing on profitable lines, with lower sales of electrical products, like flat screen TVs and computers, accounting for around half of the decline.
Woolworths said total group sales increased by 11.2% in the period and that it expected annual profits to be within the range of current market expectations.
The company is expected to report adjusted pretax profit of around £26.6m sterling in the current year according to the average forecasts from analysts. This is up from £21.8m the previous year.
The retailer said it remained concerned about the underlying level of consumer confidence in the year ahead, however.
