
Group loss hits new high as retail business sees £70m shortfall
Woolworths has reported group losses of almost £100 million for the six months to the start of August.
Sales for the retail business were £660.7 million in the half-year, down 3.2 per cent like-for-like.
The company's entertainment wholesale and publishing arm - including its BBC Worldwide joint venture 2entertain - posted sales of £446.3 million.
Overall group losses of £99.7 million compared with a deficit of £63.8 million a year earlier.
Operating losses for the retail business, which trades from around 800 stores in the UK, were £69.5 million.
Steve Johnson, who joined the company as chief executive earlier this month, said: "Right now, this business does not require lots of new strategic initiatives, it requires a good dose of basic shop keeping and attention to the detail of retailing.
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"Everyone in Woolworths is clear that our first priority - in all parts of the group - is delivering a successful Christmas for our customers."
Last month the firm rejected a takeover approach from investment group Baugur – owner of the Iceland food chain.
According to the Press Association, reports suggest the parties remain interested in the chain's stores.
Comments
Good i say !!
im glad, ive just been in there to check out pricing and everything is rock bottom, Viva pinata £29.97, TNA £34.99
how indies can complete with this is impossible, there is no real need to push the prices down on games that will sell well anyway, selling at cost price is crazy, i dont know how they can carry on trading, they cant make that much profit on pick N mix surely ??? mostly ran by elderly women who know nothing about games
surprise, surprise!!
Well, after the Wii console drop debacle I think everyone knew this one was coming.
The quote for basic shopkeeping made me laugh. I don't think the company has ever kept a shop properly in its life. Try as you may Woolworths to sort yourselves out I think your downfall is looming.
Re: surprise, surprise!!
Oh, well the credit crunch's next victim looms ever closer ..
Re: Re: surprise, surprise!!
This feels like revenge for all the times I queued up only to be told what I had in my hand wasn't actually in stock. It's the sole reason I hate Woolworths with a passion.
I wouldn't write them off.
£100 million is a drop in the ocean with bumper season just around the corner.
Personally I think the whole of the industry should concentrate on making some money this Q3 or the significant casualties will come next year when they've got no pot to dip into and projections based on Q3 2008 will not be able to secure them stop gap funding.
That goes for everyone not just Woolworths.
I don't think it will happen though - too much pressure to hit targets - the whole industry is on shakey ground in my opinion at the moment - possibly caused by one of the big boys teetering on the brink of another credit downgrade.
Re: I wouldn't write them off.
Woolies remains the uks no1 toy retailer they need to focus strength here & ent. the brand is undeniable the substance will see it become a force again me thinks.
Re: Re: I wouldn't write them off.
Jman - Argos is the no 1 toy retailer in the uk....
Re: Re: Re: I wouldn't write them off.
Time and time again i see from inside woolworths money being wasted on stock that wont sell, aiming at the wrong demographic and paying low wages at store levels and extremely high wages to those in head office. To put the icing on the cake, those head office employees who are getting paid at least £40k fail and make huge mistakes, yet are not punished. They need restructure from the highest levels and lower the highest wages to save some of this money.
Re: Re: Re: Re: I wouldn't write them off.
@6
That should be the case for every chain and institution who has behaved irresponsible over the past decade! It’s a fix up now or die situation for all of us. And we the consumers are sick of hearing stories of individuals getting paid doing sweet fa at the expenses of the workers and consumers!
Re: Re: Re: Re: Re: I wouldn't write them off.
that was suposed to be @9 'lol'
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