Woolworths Holdings Pivots Strategy After Annual Profit Decline

Woolworths Holdings Ltd. is reorienting its business strategy to focus on its premium South African food operations following a 5.1% decline in annual profit to 2.3 billion rand for the year ending in June. Chief Executive Officer Sam Ngumeni is pivoting the group toward this best-performing division to revive growth, leveraging beauty and home offerings to deepen customer relationships.

The South African food unit reported a 5.6% rise in sales and a nearly 20% increase in grocery-delivery revenue. In contrast, the company experienced margin pressure and weaker demand across its fashion, beauty, and home sectors. To stabilize these areas, Ngumeni overhauled the management structure and appointed Manie Maritz to lead the struggling division.

To further strengthen its supply chain, the company is awaiting regulatory approval to acquire food manufacturer in2food. Meanwhile, its Australian apparel subsidiary, Country Road Group, has returned to profitability with modest sales growth.