Woolworths set for profit return

Woolworths said today its retail arm should return to profit in the current financial year, despite falling sales and a “very challenging” Christmas.

The chain did not provide festive trading figures, but said same-store sales for the 49 weeks to January 12 were down 3.2%, with slower sales of electrical goods accounting for half the fall.

However, management said the division – comprising around 800 stores across the UK – would make a small profit, reversing a loss in the previous year.

Woolworth’s total sales, including the business’s entertainment wholesale arm selling CDs and DVDs to retailers, were up 11.2%.

Chief executive Trevor Bish-Jones said: “Christmas was a very challenging time for the group. However, in spite of volatile and highly competitive markets, all parts of the business took steps forward.

“We are pleased that the progress made across the group through this year is expected to lead to an improvement in profitability, including Woolworths Retail returning to profit.”