WLW Woolworths

RNS Number:2282N
Woolworths Group PLC
05 December 2006

                              Woolworths Group plc

                               Trading Statement

                            Embargoed until 0700 hrs

                               On 5 December 2006

Trading Update

In light of the recent public commentary about trading conditions in the retail
sector The Board of Woolworths Group plc believes it is appropriate to update
the market on its trading performance up until the end of November.

In October and November the Woolworths retail chain has experienced lower
footfall and sales levels compared with previous years.  Overall like-for-like
sales for the 18 weeks to 2nd December are currently down by 6.5%.  We continue
to make progress on improving our margin and for the second half we are
currently 150 basis points ahead of last year.

Sales performance varies across the different categories.  The most challenging
market is Entertainment, where retail prices are materially below last year.  At
this stage, sales of seasonal Christmas products are slow.  Sales of Toys have
been strong.

Customer response to our move into multichannel retailing through the Big Red
Book has been very encouraging.  Since its launch on 17th October, multichannel
sales have increased by 160% on last year and now account for 7.5% of sales,
well ahead of budget.  This has added some short-term cost pressure to the
business as we ensure swift and reliable fulfillment of customers' orders. These
costs will reduce next year as we complete the necessary enhancements to our
supply chain and delivery systems.

EUK and 2entertain continue to trade in line with expectations.

Outlook

We still have the key Christmas trading weeks to come which will determine the
final outcome for the year.  Given that Christmas falls on a Monday this year,
there will be an extra weekend for shopping which may result in retail sales
falling later than usual.  However, given the sales performance of the last two
months, it is appropriate to be cautious.  In order to achieve results for this
financial year around the lower end of market expectations, we will need to
achieve a sales uplift for the remainder of the Christmas trading period and
continued improvement in the margin.

We enter this key period with well developed retail plans, a good product range,
tight stocks and a strong multichannel offer.



For further information contact:
Stephen East, Group Finance Director                         020 7479 5179
Kirstie Hamilton, Tulchan Communications                     020 7353 4200
Celia Gordon Shute, Tulchan Communications                   020 7353 4200




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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