Editorial illustration: SA Business Lens.
Woolworths’ online food sales rose 24.1%, yet its total food sales grew just 1.9%. The gap in Wednesday’s trading update reveals a difficult retail balancing act: winning more digital orders while protecting the money earned from each sale.
Online still accounts for only 9.1% of South African food sales. It can expand rapidly without transforming the whole business. Woolworths also says online growth dilutes its gross margin, adding another test beyond simply getting more orders through the app.
One food business, very different growth rates
The figures below cover the 19 weeks ended 8 November 2026, compared with the corresponding period a year earlier.
| Measure | Change or share |
|---|---|
| Total food sales | +1.9% |
| Comparable-store food sales | +0.1% |
| Online food sales | +24.1% |
| Online share of SA food sales | 9.1% |
| Average food price movement | +3.0% |
Read the company’s SENS announcement.
These percentages answer different questions. Growth measures how much sales changed; the online share measures how much of the business that channel represents. Treating the two as interchangeable would exaggerate what the digital surge means.
Why more orders are only half the story
SBL analysis: A retailer needs to watch both sales and the margin left after buying or producing what it sells. A channel can attract customers and still change that margin unfavourably. The commercial challenge is to grow convenience profitably, rather than judge success by the biggest growth percentage.
Nor should the price and sales figures be subtracted to announce an exact fall in the number of groceries bought. Changes in product mix, store coverage and the measurement base matter. This update does not provide a directly comparable food-volume series.
The supplier deal behind the margin defence
Woolworths completed the in2food acquisition on 5 November. It expects the deal to support food gross margin against pressure from fuel costs and online growth.
The strategic case predates this update. In its 8 October announcement, Woolworths described a supplier relationship stretching over three decades. Bringing the convenience-food producer into the group is intended to improve supply-chain efficiency, product development and speed to market. It said in2food would remain a standalone business within Woolworths.
For readers, the distinction is practical: a company’s plan to improve its margin is not a promise of cheaper groceries. The test is whether the combined business can deliver better products and service while improving its economics. The acquisition announcement does not quantify a saving for shoppers.
The next trading update is due in mid-January 2027, after festive-season trading. The current figures have not been audited or reviewed by the external auditor.
Related reading: Woolworths versus Checkers: what are you really paying for?
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