Country Road Group sales fell by 9.5 per cent in the 19 weeks to November 8, and every brand in the portfolio came under pressure.
South African parent company Woolworths Holdings Limited (WHL) reported that comparable-store sales at the Australian company –which manages Witchery, Politix, Trenery, Mimco and its namesake brand – were down 8.2 per cent on the same period last year.
WHL put the result down to rising interest rates and cost-of-living pressures. It noted these had weighed on consumer sentiment, foot traffic and spend, while discounting had been heavy across the retail sector.
Despite the drop in sales, WHL reported that better inventory levels and fewer markdowns had helped Country Road Group’s margin, as the group focused on disciplined trading and profitable sales. Online’s share of sales was largely unchanged on the prior period.
The Australian fashion group also kept reworking its retail portfolio across locations, channels and formats. Net trading space fell 2.2 per cent compared to the prior period.
The update also flagged how exposed Country Road Group is to David Jones, where its brands trade through concessions. WHL confirmed it is talking to the department store’s receivers and managers and is assessing what the appointment means for the trading relationship.
David Jones’ directors appointed McGrathNicol as voluntary administrators last week, while secured lender Hilco Capital appointed FTI Consulting as receivers and managers of parent company ACP Riley Street Midco. The receivers have since confirmed they will close 19 stores across the department store fleet as part of an urgent restructure of the business.
Before the collapse, Country Road Group had planned to cut nearly 100 of its more than 280 concessions across David Jones from early 2027, covering all five of its brands.
The latest sales result is a reversal from a year ago, when Country Road Group sales were up 3.3 per cent in the 19 weeks to November 9, 2025.
The group shrank its losses in FY26 by more than 80 per cent to around $21 million, amid sales growth of 1 per cent for the full year compared to FY25. That followed a FY25 loss attributable to WHL shareholders of R1.43 billion (~A$124.1 million).
In FY26, Witchery reported comparable sales growth of 9.5 per cent, while Politix delivered comparable sales growth of 10.2 per cent, and the Country Road brand traded marginally ahead of the previous year.
Across WHL as a whole, which includes the Woolworths department stores in South Africa and a retail portfolio in the United Kingdom, turnover and concession sales grew marginally by 0.2 per cent for the period, and by 0.1 per cent in constant currency. WHL reported that trading remained tough in both South Africa and Australia, with high fuel prices, inflation and interest rates holding back discretionary spend. Shoppers were increasingly prioritising promotions and essentials.
Woolworths South Africa lifted turnover and concession sales by 1.6 per cent, led by its food business, which grew 1.9 per cent.
The fashion, beauty and home division slipped 0.3 per cent on both a total and comparable-store basis. Price movement averaged 1.2 per cent, and fashion prices deflated by 0.3 per cent. Homeware sales rose 6.4 per cent and beauty grew 3.1 per cent despite more competition in the category.
Fashion, beauty and home online sales jumped 16.1 per cent and made up 7 per cent of South African sales. Net trading space fell 0.7 per cent, and WHL reported lower inventory than last year.
WHL sold the David Jones business in a deal initially struck in December 2022 for $100 million, and separately sold the Bourke Street property in January 2025 for $223 million.
WHL will release its next trading update in mid-January 2027, after the festive season.