Woolworths' H1 loss goes up marginally |
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Fri, 23 Sep 2005 09:05
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LONDON: Retailer Woolworths Group Plc., has recorded an enhanced first half loss at 35.9 million pounds compared with 32.9 million pounds a year ago. The company said, it is planning several cost saving measures ranging from recruitment freeze, job cuts, reductions in marketing and a renegotiation of support-service contracts.
The accounts were prepared under the new IFRS accounting rules. The company's group sales from continuing operations fell 2.9 per cent to 1.038 billion pounds, while like-for-like sales dropped 4 per cent. The company claimed that the rate of decline has indeed eased with gross margin almost reaching last year's levels in the last eight weeks.
The company has always been posting a first half loss and making up with profits in the second half capitalising on the Christmas business.
The company's chief executive Trevor Bish-Jones said he hopes to achieve cost savings to the tune of 25 million pounds in addition to 10 million pounds already made in the first half. There would be smarter stock control, improvements in staff management and lower distribution costs.
The company proposes to reduce prices for Christmas, and will focus on its DVD sales. Bish-Jones added that he is confident of accomplishing the full-year profit forecast of around 54 million pounds. The festive sales are to begin in November, three weeks later than last year. The Portable PlayStation from Sony, launched earlier this month, would be one of the star sales items at the stores.
Woolworths had sold its specialist entertainment store chain, MVC, to an investor group for 5.5 million pounds.
Meanwhile, the company's staff is seeking wage rises. USDAW, the union that represents several shop floor staff is set to have negotiations with the management next week in this regard. The company has frozen wages since April.
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