Woolworths have had a pretty inauspicious start to 2019, largely thanks to their habit of stealing other people’s ideas and passing them off as their own.

We’re talking about the Ubuntu Baba story, which we have covered in great length here.

That story led to many angry folks talking about a Woolworths boycott, but that’s not what’s behind the company’s current share price woes.

Business Insider reports:

Disappointing sales from Woolworths and Mr Price triggered a bloodbath in the JSE’s retail sector on Thursday morning…

…more than R5 billion of Woolworths’s market capitalisation was wiped out in a couple of minutes as investors digested its update: Sales of its fashion, beauty and homeware products fell by 2% in the six months, while food sales rose by 6.3% – compared to the 9% growth it reported a year before.

Woolworths share price was last at R49.75 – down almost 10% by Thursday afternoon. Its shares have now lost more than a quarter of its value from last year’s highs.

Eish, baba.

Here’s a look at the share price performance over the past five days, as of 10AM this morning:

There’s been a little upturn this morning, and you can track the live share price here.

It was also a pretty average day for Truworths, who fell by more than 9% to R80,71, and Clicks, who lost 4% to R192,26.

Experts weighed in on what has led to the Woolies woes:

Higher taxes and interest rates, and the recessionary economy have taken a toll – and the record petrol price only started coming down at the end of November, says Ron Klipin, a senior analyst at Cratos Capital.

A continued shift toward online shopping also contributed to Woolworths taking strain, says Gryphon research analyst and portfolio manager Casparus Treurnicht.

In addition, Woolworths has always had a buying problem, says Vestact’s Bright Khumalo. Their timing of summer and winter stock has been out in the past, and they have missed out on key fashion trends.

Woolworths CEO Ian Moir last year admitted to Moneyweb that the group “went too young and fashionable with our womenswear”.

When you think of the quintessential Woolworths customer, are you thinking of some young fashionista? No, me neither.

Pretty sure everyone at the company will be hoping that January isn’t an indicator of the year to come.

[source:businsider]