S. African retailer Woolworths reports a yearly income decline of more than 20%

Woolworths (WHLJ.J), a retailer in South Africa, announced that it anticipated its yearly earnings to drop by almost 20% from the previous year. The company attributed this decline to both customer spending cuts and the sale of its David Jones division.

In a time when cash-strapped consumers are cutting back on spending due to rising interest rates and living expenses, retailers like Woolworths have been dealing with difficult trading conditions.

Woolworths, an Australian company, reported that its garment divisions have faced more challenging trade conditions in the second half of the year than anticipated.

The retailer of food, clothing, and beauty products claimed that increased fixed expenses and inflated import costs as a result of a declining currency were further hurting its Country Road Group operations in Australia.

However, the corporation claimed that despite significant increases in trade and market share, its food industry was still demonstrating its resilience.