Woolworths is in serious trouble

Woolworths’ latest trading update shows that its food division, which is the jewel in its crown, has suffered a serious setback.

This was revealed in the company’s trading statement on Wednesday, 11 November 2026, which provided an update on the 19 weeks ended 8 November 2026.

It said turnover and concession sales for the period grew marginally by 0.2%, and by 0.1% in constant currency. This was lower than inflation.

Woolworths Food delivered sales growth of 1.9%, and 0.1% on a like-for-like store basis. “Price movement averaged 3.0% for the period,” it said.

Simply put, Woolworths Food’s sales declined. This shocked the market as it was always the division which carried the retailer.

The company blamed high fuel prices, inflation, and interest rates, which it said continued to constrain consumer demand and discretionary spending.

However, a constrained consumer market is nothing new in South Africa and has been the norm for the past 15 years.

The food division was not the only concern. Country Road turnover fell by 9.5%, driven by weak Australian consumer sentiment and reduced footfall.

Equally concerning was that Country Road trades as concessions within David Jones, which has been placed into administration and receivership.

Woolworths Financial Services reported that its impairment rate increased to 7.3%, compared to 6.7% in the prior period.

The higher impairment rate reflects a deteriorating economic environment and increasing financial pressure on consumers, raising default risks across the credit book.

Sales in the fashion, beauty and home division declined by 0.3%, which showed that people are shopping less at Woolworths.

The market did not like what it saw, and the Woolworths share price declined by 8.52% on Wednesday following the trading update.

Expert opinion about Woolworths

Schalk Louw, a portfolio manager and strategist at PSG Wealth, described the Woolworths results as extremely concerning.

“The market is telling us the exact same thing. It is utterly disappointing because every six months it feels like déjà vu,” he told BusinessDayTV.

He said that in the past, Woolworths Food had always done well and was a solid, growing business.

The clothing side, in comparison, was hurting the company. Many experts, including Louw, called for Woolworths Food to be listed separately.

In the latest trading statement, things changed. “The food side has stopped growing, expanding by just 0.1%,” he said.

“When you factor in the 3% price inflation we have seen in Woolies Food, that means actual sales volumes have decreased.”

“That is really dangerous because the golden goose has suddenly stopped laying its golden eggs.”

He added that Country Road remains a concern, and that management will have to explain how the lingering effects of the David Jones sale will factor into the broader business.

“The market is clearly very worried. Hopefully, this will be the last time we have this discussion, though I doubt it,” he said.