Woolworths cautions on trading conditions

British retail chain Woolworths reported weaker store sales today as it geared up for the Christmas trading season in cautious mood.

The group said like-for-like sales from its retail business were 0.4% lower in the 38 weeks to October 27, compared with growth of 0.6% seen in the six months to August 4.

Total group sales were up by 16.6% as Woolworths benefited from the performance of its wholesale business, which provides supermarkets and other retailers with CDs, DVDs and entertainment products.

Chief executive Trevor Bish-Jones said the company remained cautious about the trading environment.

However, he added: “We are confident that operationally the businesses are in good shape, with strong customer propositions going into the critical Christmas trading period.”

Andrew Wade, a retail analyst at Seymour Pierce stockbrokers, said today’s figures pointed to a sales decline of 2% over the last 12 weeks.

He added: “This was, although not surprising, a touch disappointing. We continue to believe that, despite the potential in the entertainment wholesale business, the retail operation will continue to struggle.”