Many retailers are struggling on the high street but growing on the web

High street woes balanced by the web at Woolworths

Multichannel sales grow while retail like-for-like revenue drops

Written by Bryan Glick

Computing, 02 Apr 2008

Woolworths has become the latest major retailer to be struggling on the high street but growing on the web.

In a preliminary financial results announcement, the company warned that it will cut its dividend to shareholders by two-thirds, despite a 30 per cent rise in annual profit before tax.

But the group reported retail like-for-like sales – a key success measure for high street shops – down 3.2 per cent, while multichannel sales – covering the web as well as catalogues – increased 5.2 per cent.

“The retail environment is likely to remain challenging in the current year, “ said chief executive Trevor Bish-Jones.

“We will, therefore, continue to manage the business tightly."