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Woolworths' sales slide continues Woolworths' sales slide continues
(about 2 hours later)
Woolworths has reported widening losses and sliding sales, blaming a "tough market" for its problems.Woolworths has reported widening losses and sliding sales, blaming a "tough market" for its problems.
Like-for-like sales, which ignore the effect of new stores, fell 8.3% in the six months to 29 July. Losses widened to £64.9m from £20.2m a year ago.Like-for-like sales, which ignore the effect of new stores, fell 8.3% in the six months to 29 July. Losses widened to £64.9m from £20.2m a year ago.
Woolworths said it expected trade to pick up in the second half of the year after making "significant" changes.Woolworths said it expected trade to pick up in the second half of the year after making "significant" changes.
The firm has revamped stores and plans to become the UK's leading children's toys and clothing retailer.The firm has revamped stores and plans to become the UK's leading children's toys and clothing retailer.
The group has also unveiled plans to concentrate on its online operations and hopes to place internet access points in its stores.The group has also unveiled plans to concentrate on its online operations and hopes to place internet access points in its stores.
New focusNew focus
By relying on the "catalogue model" Woolworths hopes to encourage more customers to come into their stores to pick up their goods.By relying on the "catalogue model" Woolworths hopes to encourage more customers to come into their stores to pick up their goods.
The recent rate rise on top of increasing household bills will hold back consumer confidence Woolworths Check Woolworths' shares The recent rate rise on top of increasing household bills will hold back consumer confidence Woolworths href="/1/hi/business/5362810.stm" class="">Q&A: Worries at Woolies href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/23481/intraday.stm" class="">Check Woolworths' shares
Despite the slide in sales, the 97-year-old group remains the UK's eighth largest retailer and is the country's number one seller of sweets and chocolates.Despite the slide in sales, the 97-year-old group remains the UK's eighth largest retailer and is the country's number one seller of sweets and chocolates.
Woolworths also hopes to capitalise on this by becoming the leading "celebrations" retailer in the UK, promoting sales of Easter, Christmas and other key holiday goods.Woolworths also hopes to capitalise on this by becoming the leading "celebrations" retailer in the UK, promoting sales of Easter, Christmas and other key holiday goods.
Independent Retail Consultant Theresa Wickham told the BBC the group was "very much caught in a squeeze", battling stiff competition from supermarkets which are increasingly targeting the non-food market, as well as online retailers like Amazon which are encroaching on its entertainment division.Independent Retail Consultant Theresa Wickham told the BBC the group was "very much caught in a squeeze", battling stiff competition from supermarkets which are increasingly targeting the non-food market, as well as online retailers like Amazon which are encroaching on its entertainment division.
"The Woolworths brand is very popular, but it is being caught in three areas - it's very strong in toys, entertainment and confectionary," she said."The Woolworths brand is very popular, but it is being caught in three areas - it's very strong in toys, entertainment and confectionary," she said.
"Its margins are so low as it's being squeezed in those three areas by supermarkets.""Its margins are so low as it's being squeezed in those three areas by supermarkets."
Entertainment liftEntertainment lift
Although competition is stiff, Woolworths still managed to post a significant rise in sales at its 2entertain audio and visual publishing division and its home entertainment distributor unit EUK - buoyed by the release of the second series of Dr Who and the latest Little Britain DVD.Although competition is stiff, Woolworths still managed to post a significant rise in sales at its 2entertain audio and visual publishing division and its home entertainment distributor unit EUK - buoyed by the release of the second series of Dr Who and the latest Little Britain DVD.
Elsewhere, the group also said the summer heatwave had resulted in record sales of outdoor goods.Elsewhere, the group also said the summer heatwave had resulted in record sales of outdoor goods.
However, these gains were offset by a decline in sales of indoor toys and a drop in customer numbers during the World Cup.However, these gains were offset by a decline in sales of indoor toys and a drop in customer numbers during the World Cup.
Woolworths also said the hot weather had had a negative impact on chocolate sales.Woolworths also said the hot weather had had a negative impact on chocolate sales.
Looking ahead, the group said it was "particularly difficult" to forecast how it would perform over the key Christmas period.Looking ahead, the group said it was "particularly difficult" to forecast how it would perform over the key Christmas period.
"The recent rate rise on top of increasing household bills will hold back consumer confidence," the group said."The recent rate rise on top of increasing household bills will hold back consumer confidence," the group said.
With up to 80% of its profits expected to come from its Christmas sales, this festive season will be "absolutely vital", analyst Teresa Wickham added.With up to 80% of its profits expected to come from its Christmas sales, this festive season will be "absolutely vital", analyst Teresa Wickham added.