Woolies slips as its says SA's consumers struggled more than it expected

Shares in Woolworths fell almost 4% on Wednesday morning after it reported its interim profit fell by over a third as it reels from a worse-than-expected pullback in consumer spending in SA and in Australasia.

The JSE-listed retailer, whose interim dividend to shareholders was also cut 6.6% to 148c per share, reported its profit fell 33.5% to about R1.8 billion in the six months to 24 December, adding that its customers are grappling a soaring cost of living and higher interest rates.

Its total turnover and concession sales from continuing operations increased 5.4% to about R38 billion, with Woolworths flagging a 7.2% acceleration in the last six weeks of the period that also included the key festive season.