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Woolworths eyes township expansion
Woolworths plans to expand its clothing chain through smaller stores in townships where the retailer
has historically not had a presence.
This new strategy was revealed on Wednesday when the company released its financial results for
the year ended 25 June 2023.
The retailer saw a significant increase in earnings and profit following the disposal of its David Jones
operations and strong results from its continuing operations.
Woolworths disposed of its David Jones operations on 27 March 2023, which led to a significant
earnings boost for the company.
This removed about R18 billion in liabilities from the retailer's balance sheet, enabling it to invest
heavily in expanding its South African operations.
Having turned around its fashion division, the company plans to expand its clothing chain in South
Africa's lucrative township market.
Woolworths plans to open significantly smaller stores than its traditional 2,000 m² stores in shopping
malls to access this market.