Spring 2007

Multi-channel business at Woolworths Group rose by £77.2 million last year, according to the company's preliminary results for the year ending 3 February.

Chief executive Trevor Bish-Jones says the multi-channel offer 'has proved popular with customers.'

The multi-channel result was among highlights of the group's performance, though it was eclipsed in the finance press by emphasis on the fact that Woolworth's' like-for-like sales were down overall by 6.6 per cent. This meant adjusted profit was down from £57.7 million to £21.8 million.

Woolworths blames the reduction in profit on difficult trading. Factors singled by commentators include loss of a contract to supply Tesco (though the company says this has been offset by new business gains) and reduced margins on entertainment products such as CDs. Woolworths' multi-channel fulfilment was covered in our last issue.