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Johannesburg - Retailer Woolworths [JSE:WHL] reported double-digit growth in food and clothing sales for the first half of the year, a sign that spending remains robust among wealthier consumers.
However, investors were likely looking for an even stronger performance and its shares sank more than 2%.
Woolworths said clothing sales in its home market rose by 10.7% in the 26 weeks to December 29.
Food sales in South Africa increased by 15.3%, while sales in Australia and New Zealand were nearly 30% higher in Australian dollar terms.
Thanks to its reliance on middle-class shoppers, Woolworths is more resilient to the weak growth and high household debt levels that have squeezed lower-income consumers.
Massmart, the South African unit of Walmart, surprised the market on Wednesday with a near 10% rise in annual sales, slightly above analyst estimates.
Retailers in Africa's biggest economy came under pressure in 2013 on worries about weakening consumer spending. Official data showed on Wednesday that retail sales jumped 4.2% year-on-year in November, well above the 1% growth economists polled by Reuters had expected.
However, investors were likely looking for an even stronger performance and its shares sank more than 2%.
Woolworths said clothing sales in its home market rose by 10.7% in the 26 weeks to December 29.
Food sales in South Africa increased by 15.3%, while sales in Australia and New Zealand were nearly 30% higher in Australian dollar terms.
Thanks to its reliance on middle-class shoppers, Woolworths is more resilient to the weak growth and high household debt levels that have squeezed lower-income consumers.
Massmart, the South African unit of Walmart, surprised the market on Wednesday with a near 10% rise in annual sales, slightly above analyst estimates.
Retailers in Africa's biggest economy came under pressure in 2013 on worries about weakening consumer spending. Official data showed on Wednesday that retail sales jumped 4.2% year-on-year in November, well above the 1% growth economists polled by Reuters had expected.
