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Woolies sees shares slump

17.01.08

Shares in the retail chain Woolworths fell nearly 18% to a record low yesterday as the retailer said it was operating in "volatile and highly competitive markets" - and refused to give details of its Christmas sales, reports the Guardian.

The chief executive, Trevor Bish-Jones, said he had decided against releasing Christmas figures because his trading strategy would boost profits but hit like-for-like sales. He refused to divulge the extent of the sales downturn because there was a risk journalists would misinterpret the numbers and provide "poorly informed information". City analysts made their own calculations - deciding that underlying sales might be down by more than 10% - and the shares slumped.

At last night's price the company is valued at £115m - equivalent to a fortnight's sales from the group's 800 high street locations. The share price is so low that many analysts believe yesterday's update could be the catalyst for structural change in the ailing business.

Guardian

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