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South African retailer Woolworths expects profit for the 52 weeks to June 28 to fall more than 20 percent year on year, hit by a drop in sales owing to measures to prevent the spread of the coronavirus.
In its markets of South Africa, Australia and New Zealand, governments have enforced weeks-long lockdowns or urged citizens to stay home, prompting Woolworths to close outlets selling clothing, beauty and home-ware products.
“The temporary closure of non-food stores . . . decline in foot traffic and consequent loss of trade are likely to have a substantial impact on our earnings and cash-flow,” the company said in a statement.
While it benefited from a 27,6 percent rise in food sales in South Africa in the four weeks to the end of March as consumers rushed to stock up on goods, this was accompanied by a similar decline in its fashion, beauty and home unit. – Reuters.
Online Reporter