Woolworths Holdings (South Africa) has revealed that restrictions on international travel, improved consumer confidence and stronger economic fundamentals has boosted spend in its retail brands David Jones and Country Road Group (CRG).
These factors drove "inward-focused consumption and buoyed retail spend," according to the parent company.
This was reflected in both David Jones (DJ) and CRG's FY21 results, with both brands reporting a lift in sales.
DJs saw turnover and concession sales increase by 2.3% and by 0.9% in comparable stores, with second half sales up by 17.1%.
"Sales in our Elizabeth Street flagship store grew by 16.6% during the current year, notwithstanding the lower footfall in the Sydney CBD," Woolworths Holdings commented.
Meanwhile, CRG saw sales lift 3.5% over the current year and by 15.3% in comparable stores, with second half sales up by 39.5%.
"This result was underpinned by the robust performance of the Country Road brand and through refreshed product offerings across all brands," Woolworths Holdings said.
During the period, both brands witnessed strong digital sales, with DJs eCommerce sales increasing by 24.4%, contributing 17.3% to total sales for the current year.
CRG's digital sales rose 30.7% and contributed 29.7% to total sales in FY21.
Woolworths Holdings also reduced both DJ's and CRG's trading space in FY21, with DJ's space reducing by 6.3% and CRG's space cut by 2.8% in the period.
In DJs, gross profit margin was 2.2% higher than the prior year, at 35.2%, due to reduced markdowns and an improved inventory position.
Expenses increased by 0.3% on the prior year, with government support and rent relief in line with the prior year, and additional costs from the leaseback of the Elizabeth Street and Bourke Street Men's stores.
Over at CRG, gross profit margin increased by 2.2% to 60.8% due to increased full-price sales.
The Group's expenses reduced by 0.4%, mainly from store closures and a reduction in discretionary spend, as well as higher levels of government support and rent relief in the current year compared to the prior year.
Both brands reported significant lifts in adjusted operating profit, with DJs up 282% on the prior year to AUD $84 million and CRG up 158.3% to AUD $155 million.
Woolworths Holdings reports that footfall in CBD and airport locations remains well below pre COVID-19 levels.