Woolworths Warns on Australia, Invests in South Africa Food Unit

Woolworths Holdings Ltd. said trading in its Australian apparel business slowed sharply at the end of the first half, while stepped-up investment in its South African food division weighed on margins.

The Australian market “is highly promotionally driven,” Chief Executive Officer Roy Bagattini said in an interview Wednesday. “There’s not much that you buy in Australia today that is not on sale or not with a discounted price ticket. So those businesses are sitting with a lot of inventory, particularly in discretionary categories.”