Woolworths Food is putting food at the centre of its growth strategy in South Africa as the retailer works to improve product availability, quality and convenience for customers.
The company’s food division recorded turnover and concession sales growth of 5.7% for the financial year ended 28 June 2026, while the wider Woolworths group increased turnover and concession sales by 4.3% to R84.5 billion.
However, Woolworths Food experienced weaker volumes during the second half of the financial year. Supply challenges affected its bakery and fresh-produce operations, with poor weather contributing to difficulties among some suppliers.
Woolworths CEO Sam Ngumeni said the company was not prepared to compromise on product quality simply to maintain supply. The retailer has therefore been working with existing suppliers and bringing additional suppliers into its network to improve reliability and prevent shortages.
The company is also focusing on its bakery offering, with greater emphasis on innovation, quality and value for customers.
Expansion Beyond Traditional Stores
Woolworths is planning to expand its food-service presence through partnerships, including with Uber Eats.
The retailer is also working with Engen to increase its food-court presence at petrol stations across South Africa. The plan is to double this presence, giving customers more opportunities to access Woolworths Food outside traditional shopping centres.
Online grocery delivery is another major focus. Revenue from Woolworths’ on-demand service increased by 19.6%, while online sales accounted for 7.3% of South African Food sales during the financial year.
Woolworths says it sees further potential in online and on-demand grocery shopping and is investing in its digital platform to capture more of this growing market.
The strategy forms part of a broader reset by Woolworths Holdings, which has identified its premium Food business as the group’s primary engine of value creation.
For customers, the strategy could mean better product availability, more food-service locations and greater access to Woolworths groceries through delivery and digital channels.