
<p>JOHANNESBURG (Reuters) &#8211; South African retailer Woolworths said on Friday its profits for the 52-weeks to June 28 could plunge by as much as 70% due to the impact of the coronavirus crisis, high tax rate, and adoption of IFRS 16 accounting standards.</p>



<p>Woolworths said its headline earnings per share (HEPS) &#8211; the main profit measure in South Africa- would fall by between 60% and 70% compared to the 342.9 cents it reported a year earlier.</p>



<p>The owner of David Jones in Australia also impaired the carrying value of certain store assets, which will only negatively impact earnings per share and not HEPS.</p>


Woolworths

S.Africa’s Woolworths warns annual profits could fall by 70%

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<p>The news of Shoprite’s planned divestment from Nigeria has reignited conversations about the state of Nigeria’s business environment. When South African retailer, Woolworths, announced its exit from Nigeria, the company emphasised duties, high rental costs, and supply chain challenges in Nigeria as major reasons for its exit. Akintunde Sawyerr, Executive Secretary of the Agricultural Fresh Produce Growers and Exporters Association of Nigeria joins CNBC Africa for more.</p>


How to fix Nigeria’s supply chain challenges


<p>JOHANNESBURG (Reuters) &#8211; South African department stores chain Woolworths Holdings flagged a small fall in annual sales after its non-food stores were shut in the second-half of its financial year due to COVID-19 lockdowns.</p>



<p>Even before the global health crisis, South African brick-and-mortar retailers were struggling with weak consumer spending amid slowing wages growth, high utility costs and high unemployment. The pandemic has compounded these problems.</p>



<p>Woolworths, which also operates in Australia, said group sales for the 52 weeks ended June 28 fell 0.1% compared with a year earlier. In constant currency terms, sales declined 1.1%.</p>



<p>The sales performance for the second half was hit also by a drop in customer numbers as they limited trips to malls and shopping centres, with some opting just to shop online.</p>



<p>This pushed online food sales for the South Africa business up by 87.8%, while Woolworths Fashion, Beauty and Home online sales grew by 41.3% during the second half.</p>



<p>For the full year, Woolworths food sales jumped 10.7% while fashion, beauty and home sales declined 10.7 as shoppers prioritised essentials.</p>



<p>“To stimulate trade and manage inventory levels throughout this period, management executed a series of focused promotional and clearance initiatives targeted at generating and preserving cash,” the firm said in its trading update.</p>



<p>“While this negatively impacted gross profit margin, it has resulted in better inventory levels and an improved working capital and net gearing position at year-end.”</p>



<p>In Australasia, sales in upmarket department store David Jones fell 6.3% over the year, while sales in Country Road Group declined 14.3%. Online turnover in both businesses jumped 100.7% and 28.1% respectively in the second half.</p>



<p>South Africa’s retail sales plunged by a record 50.4% in April and by 12% in May, data showed on Wednesday, in the latest evidence of the impact of the early, stricter phase of the country’s coronavirus lockdown.</p>


South Africa’s Woolworths sees annual sales dip as COVID-19 hits


<p>JOHANNESBURG (Reuters) &#8211; South Africa’s biggest supermarket Shoprite will limit purchases of some food products and medicines, it said on Thursday, as frantic shoppers stripped shelves to prepare for possible isolation during the coronavirus outbreak. </p>



<p>As the spread of the infection triggers panic buying across the world, South African retailers are saying they are working with their suppliers to ensure a consistent supply of products like meat and canned food, and medicine. </p>



<p>Countries across Africa reporting their first coronavirus cases have seen a rush on shops, with customers piling trolleys with wipes, sanitizer, and staples like rice and long-life milk. </p>



<p>To ensure more people have access to everyday essentials, Shoprite said it is now rationing the sale of toilet paper, tissues, wipes, liquid soap, hand sanitizer as well as some tinned foods, cereals, antiseptic disinfectant liquids, medicines and vitamins. </p>



<p>On Wednesday, Woolworths said it is introducing a limit of only three items per product and per customer on every grocery line, while Massmart’s Makro has also restricted purchases of essential items like rice, frozen chicken and toilet paper. </p>



<p>“Unfortunately many consumers have not yet heeded to the call to refrain from stockpiling, therefore rationing the sale of certain products has become necessary,” Shoprite said in a statement. </p>



<p>Shoprite said it has also allocated special till points for pensioners and vulnerable people including those with disabilities at its Shoprite and Checkers supermarkets. </p>



<p>“The group appeals to senior citizens to shop outside of peak travel times and when stores are quieter to minimise exposure,” it said. </p>



<p>(Reporting by Nqobile Dludla, Editing by William Maclean)</p>



<p>This article was first published on Reuters Africa <a href="https://af.reuters.com/article/topNews/idAFKBN21629V-OZATP">https://af.reuters.com/article/topNews/idAFKBN21629V-OZATP</a> and is republished with its permission.</p>


Panic buying forces South African supermarkets to ration food


<p> <a href="https://www.cnbc.com/chloe-taylor/">Chloe Taylor </a><a rel="noreferrer noopener" href="https://twitter.com/@ChloeTaylor141" target="_blank">@CHLOETAYLOR141</a> and CNBC Africa </p>



<p>Panic buying has been rife amid the global spread of the new coronavirus, with consumers around the world stockpiling goods like latex gloves, hand sanitiser, canned foods and toilet paper.</p>



<p>The trend has seen stores like Woolworths in South Africa increasing sales of certain products. The retailer told CNBC Africa that it is &#8220;working to meet the increase in demand and are putting in place additional measures to ensure that shelves are restocked as quickly as possible&#8221;.</p>



<p>U.K. retailers are&nbsp;<a href="https://www.cnbc.com/2020/03/03/coronavirus-hand-sanitizer-sales-surge-leading-to-price-hikes.html">limiting sales of hand hygiene products</a>&nbsp;while Australian shoppers have&nbsp;<a href="https://www.cnbc.com/2020/03/04/reuters-america-update-2-australian-stores-ration-toilet-paper-amid-coronavirus-panic-buying.html">seen restrictions</a>&nbsp;on the amount of toilet paper they can buy.</p>



<p>Psychologists spoke to CNBC to weigh in on why our brains push us to panic buy — even when authorities are assuring the public there’s no need to.</p>



<p>According to Paul Marsden, a consumer psychologist at the University of the Arts London, the short answer can be found in the psychology of “retail therapy” — where we buy to manage our emotional state.</p>



<p>“It’s about ‘taking back control’ in a world where you feel out of control,” he said. “More generally, panic buying can be understood as playing to our three fundamental psychology needs.”</p>



<p>Those needs were autonomy, or a need for control, relatedness, which Marsden defined as “we shopping” rather than “me shopping,” and competence, which is achieved when making a purchase gives people a sense that they are “smart shoppers.”</p>



<h2 class="wp-block-heading">‘Fear contagion’</h2>



<p>Meanwhile, Sander van der Linden, an assistant professor of social psychology at Cambridge University, said there were both generalized and coronavirus-specific factors at play.</p>



<p>“In the U.S., people are receiving conflicting messages from the CDC and the Trump administration,” he said. “When one organization is saying it’s urgent and another says it’s under control, it makes people worry.”</p>



<p>President Donald Trump downplayed the impact of the U.S. coronavirus outbreak on Twitter&nbsp;<a href="https://www.cnbc.com/2020/03/10/coronavirus-testing-delays-caused-in-part-by-underfunding-cdc-director-says.html">this week</a>, with a disconnect&nbsp;<a href="https://edition.cnn.com/2020/03/09/politics/cdc-policy-test-kits-coronavirus/index.html" target="_blank" rel="noreferrer noopener">reportedly widening</a>&nbsp;between the administration and U.S. health authorities. The virus is&nbsp;<a href="https://www.cnbc.com/2020/03/11/coronavirus-live-updates.html">now present</a>&nbsp;in at least 35 states, according to the Centers for Disease Control and Prevention (CDC).</p>



<p>More generally, a “fear contagion” phenomenon was taking hold, van der Linden added.</p>



<p>“When people are stressed their reason is hampered, so they look at what other people are doing. If others are stockpiling it leads you to engage in the same behavior,” he said. “People see photos of empty shelves and regardless of whether it’s rational it sends a signal to them that it’s the thing to do.”</p>



<p>“Sometimes there can be a lot of value in social knowledge — from an evolutionary perspective when we don’t know how to react to something, we look to others for guidance,” he added. “If you’re in the jungle and someone jumps away from a snake you automatically do the same thing. But sometimes that gets highjacked and you’re told to do something that’s not the right thing to do.”</p>



<p>While sales of hand soaps and sanitizers have soared in markets around the world since the outbreak began, consumers have also been stocking up on a somewhat surprising item – toilet paper. According to Dimitrios Tsivrikos, lecturer in consumer and business psychology at University College London, toilet paper has become an “icon” of mass panic.</p>



<p>“In times of uncertainty, people enter a panic zone that makes them irrational and completely neurotic,” he said in a phone call. “In other disaster conditions like a flood, we can prepare because we know how many supplies we need, but we have a virus now we know nothing about.”</p>



<p>“When you enter a supermarket, you’re looking for value and high volumes,” he added, noting that people are drawn to the large packaging that toilet paper comes in when they are looking to regain a sense of control.</p>



<p>Tsivrikos, like van der Linden, told CNBC the&nbsp;<a href="https://www.bbc.co.uk/news/business-51769184" target="_blank" rel="noreferrer noopener">lack of a clear voice from authority figures</a>&nbsp;was fueling the panic.</p>



<p>“The public is getting conflicting advice from the government and retailers,” he said. “So people mass buy. I blame the system for not having a unanimous voice on what we should be doing.”</p>



<p>However, Peter Noel Murray, a New York-based member of the American Psychological Association and the Society for Consumer Psychology, disagreed that authority figures had the power to calm the panic-buying trend.</p>



<p>“If authorities were to consistently say that this virus is not a problem it wouldn’t change anything,” he told CNBC via telephone. “Campaigns that are authoritative are not successful if they don’t tap into people’s behavior.”</p>



<p>According to Murray, cognitive and emotional responses were the two key factors involved in influencing our decisions during situations like the coronavirus outbreak.</p>



<p>“In this case the cognitive factor is cognitive bias, (which means) we tend to overemphasize things that are recent and very vivid,” he explained. “When there’s a plane crash people don’t fly, when there’s a shark attack people think all sharks are killers. That process makes us think that whatever the current thing is, it’s similar to some terrible thing — it catastrophizes our view of whatever this thing is.”</p>



<p>In this case, Murray said, people might be associating the coronavirus with a past deadly outbreak, like the 1918 Spanish flu that killed around&nbsp;<a href="https://www.cnbc.com/2020/02/28/bill-gates-says-coronavirus-may-be-once-in-a-century-pathogen.html">50 million people worldwide</a>.</p>



<p>“On the emotional side, the answer is self-affirmation. In our minds we know one day we are going to be dead, and the mind deals with it through (seeking) control,” Murray said.</p>



<p>“There’s an over-representation of fear and people’s minds need to respond to those kinds of feelings,” he added. “The need for self-affirmation is triggered, and that drives us to do unreasonable things like buying a year’s worth of toilet paper. It overwhelms the knowledge that we don’t need to be doing that.”</p>



<p><em>This article first appeared on CNBC <a href="https://www.cnbc.com/2020/03/11/heres-why-people-are-panic-buying-and-stockpiling-toilet-paper.html">https://www.cnbc.com/2020/03/11/heres-why-people-are-panic-buying-and-stockpiling-toilet-paper.html</a> and is republished with its permission </em></p>


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Here’s why people are panic buying and stockpiling on hand sanitiser to cope with coronavirus fears

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<p>Woolworths share price bounced after CEO Ian Moir announced plans to step down next month. He will be replaced by 56-year-old retail veteran Roy Bagattini. Moir has been heavily criticised for the value destruction caused by the retailer’s Australian operation David Jones. CNBC Africa’s Fifi Peters spoke to the Deputy Chairman of Sasfin Wealth, David Shapiro for more.</p>


Why this analyst believes market reaction to Woolworths CEO exit speaks volumes


<p>Woolworths CEO Ian Moir will step down next month. He will be replaced by 56-year-old Roy Bagattini.</p>



<p>Moir has been heavily criticised for the value destruction caused by the retailer&#8217;s Australian operation David Jones. Several shareholders called for him to be axed last year after the retailed again wrote-down the value of the Australian department chain by R4.3-billion.</p>



<p>See full statement below:</p>



<pre class="wp-block-preformatted">Further to previous communications around the selection of a successor to the WHL Group Chief Executive Officer ("Group CEO"), the Board is pleased to announce that Mr Roy Bagattini has been appointed as the new WHL Group CEO and an executive director, with effect from 17 February 2020. Mr Ian Moir, the WHL Group CEO will step down from his position as Group CEO and executive director with effect from 16 February 2020.

In order to facilitate a smooth transition, Ian will be working closely with Roy and will also continue in his role as acting CEO of David Jones.

Roy (56), a South African, is presently the President: Americas for Levi Strauss &amp; Company (“Levi Strauss”), one of the world's largest brand-name apparel companies, and was responsible for leading the company’s largest commercial operations, including a significant network of retail stores, spanning the United States, Canada, Mexico, Brazil and Latin America. Roy also played an instrumental role in the development and acceleration of the e-commerce and omni-channel capabilities of Levi Strauss.

Roy has worked in international markets for over 19 years, following his South African based career. Prior to his present role, from 2013 to 2016, Roy was the President: Asia Pacific, Middle East and Africa for Levi Strauss.

From 2009 to 2013, Roy held the role of President: Asia and Africa for the Carlsberg Group based in Hong Kong and prior to that from 1991 to 2009 held various executive roles in SABMiller plc internationally and in South Africa. In addition to leading numerous merger and acquisition projects during the course of his career, he has also spearheaded the turnaround of several companies and successfully driven their growth and expansion.

The Chairman, Hubert Brody, said: “Roy has extensive operational, management and
turnaround experience in global consumer and retail markets, which will prove invaluable as we continue to navigate the structural changes taking place in the retail sector and the challenges particular to our Group. The experienced executive management team, under Roy’s leadership, will continue to drive the future strategy for the Group. The Board welcomes Roy and looks forward to his contribution.”

Woolworths also wishes to thank Ian for his stewardship of the Group for the last nine years where he oversaw a period of significant growth and transformation. Ian was appointed to the Board in January 2010 and as CEO in November 2010. Prior to his appointment as CEO, Ian was the Chief Executive Officer of Country Road having been appointed to that role in November 2000 after serving as Chief Operating Officer of the company and as a member of the Board of Country Road Group.</pre>



<pre class="wp-block-preformatted"></pre>



<p></p>


Woolworths CEO Ian Moir steps down after nine years at the helm

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<p>Woolworth’s struggle continues as the company’s headline earnings were down by 4.6 per cent to 330 cents per share and the groups dividend decreased by 20 per cent.</p>


Woolworths CEO: Why you should look beyond David Jones on results


<p>JOHANNESBURG (Reuters) &#8211; South Africa’s Woolworths Holdings reported on Thursday that it expects earnings to fall as much as 5% this year due to further impairments on its David Jones department store business.</p>



<p>Woolworths, which also has operations in Australia and New Zealand, said that headline earnings per share (HEPS) for the year is expected between 345.9 to 364.1 cents, compared to 364.1 cents in the same period last year.</p>



<p>HEPS is the main profit gauge in South Africa and strips out certain one-off items.</p>



<p>“The impairment reflects the economic headwinds and the accelerating structural changes affecting the Australian retail sector as well as the performance of the business, which has fallen short of expectations,” the company said.</p>



<p>Reporting by Onke Ngcuka, editing by Deepa Babington</p>


Why South Africa’s Woolworths expects earnings to fall as much as 5% in 2019

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<p>Joining CNBC Africa for a look at movements shaping the local markets is Henry Biddlecombe, Analyst, Anchor Capital.</p>


Why Woolworths is not out of the woods yet

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<p>Woolworths survives another tough economic year but has decreased revenue and increased costs to show for it. The food and clothing retailer reported a 2.9 decrease in HEPS to 200.4 cents and a 15.2 decrease in its interim dividend to 92cents a share. Woolworths CEO, Ian Moir joins CNBC Africa for more.</p>


Woolworths CEO: We overpaid for David Jones

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<p>Woolworths has received the resignation of David Thomas the CEO of its subsidiary brand David Jones. The WHL Group CEO, Ian Moir, has not named Jones’s successor.  Moir has assured shareholders that David Jones will be working with Woolworths’ management team in the interim. Joining CNBC Africa for more is Evan Walker, Portfolio Manager 36ONE Asset Management.</p>


David Jones CEO David Thomas resigns

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<p>On the back of the retail figures that was released yesterday CNBC Africa reporter Kopano Gumbi is spoke to Evan Walker, Co-manager of the 36ONE Equity Fund for his analysis of the figures.</p>


Why TFG is outperforming other retail shares

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<p>On the back of the retail figures that was released yesterday CNBC Africa reporter Kopano Gumbi is spoke to Evan Walker, Co-manager of the 36ONE Equity Fund for his analysis of the figures.</p>


Why 36ONE has a contrarian view on Absa

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<p>Woolworths has acknowledged that there are striking similarities between its product and the design on Ubuntu baba’s baby carriers. According to reports the giant retailer has agreed to pull the baby carriers from its stores. Joining CNBC Africa to tell us more is the owner of Ubuntu Baba Shannon Mclaughlin.</p>


Woolworths pulls baby carriers from stores following IP theft allegations

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<p>Woolworths has recalled its Savory Rice Mix product after one of its suppliers was identified as the likely source of a Listeria outbreak in Europe. All frozen vegetables from one of its factories in Hungary were recalled &#8220;due to potential Listeria contamination&#8221;. The factory supplies sweetcorn used in Woolworths’ rice mix. Joining CNBC Africa for more is Karin Carstensen, Legal &#038; Compliance Technologist for Woolworths Food.</p>


Woolworths recalls rice over #Listeria fears

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<p>Woolworths share price shot up by almost 3 per cent this morning after the retailer&#8217;s overall half year performance was slightly ahead of last year&#8217;s due to a strong result from food and financial services.</p>


Woolworths

S.Africa’s Woolworths warns annual profits could fall by 70%

How to fix Nigeria’s supply chain challenges

South Africa’s Woolworths sees annual sales dip as COVID-19 hits

Panic buying forces South African supermarkets to ration food

Here’s why people are panic buying and stockpiling on hand sanitiser to cope with coronavirus fears

Why this analyst believes market reaction to Woolworths CEO exit speaks volumes

Woolworths CEO Ian Moir steps down after nine years at the helm

Woolworths CEO: Why you should look beyond David Jones on results

Why South Africa’s Woolworths expects earnings to fall as much as 5% in 2019

Why Woolworths is not out of the woods yet

Woolworths CEO: We overpaid for David Jones

David Jones CEO David Thomas resigns

Why TFG is outperforming other retail shares

Why 36ONE has a contrarian view on Absa

Woolworths pulls baby carriers from stores following IP theft allegations

Woolworths recalls rice over #Listeria fears

Woolworths remains upbeat on Australia despite losses

News Tips

Advertise With Us

Woolworths

S.Africa’s Woolworths warns annual profits could fall by 70%

How to fix Nigeria’s supply chain challenges

South Africa’s Woolworths sees annual sales dip as COVID-19 hits

Panic buying forces South African supermarkets to ration food

Here’s why people are panic buying and stockpiling on hand sanitiser to cope with coronavirus fears

Why this analyst believes market reaction to Woolworths CEO exit speaks volumes

Woolworths CEO Ian Moir steps down after nine years at the helm

Woolworths CEO: Why you should look beyond David Jones on results

Why South Africa’s Woolworths expects earnings to fall as much as 5% in 2019

Why Woolworths is not out of the woods yet

Woolworths CEO: We overpaid for David Jones

David Jones CEO David Thomas resigns

Why TFG is outperforming other retail shares

Why 36ONE has a contrarian view on Absa

Woolworths pulls baby carriers from stores following IP theft allegations

Woolworths recalls rice over #Listeria fears

Woolworths remains upbeat on Australia despite losses

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