WOOLWORTHS last night warned of weak consumer spending as it posted a fall in profits of 15 per cent.
The retailer said the Christmas spending spree had not continued into the New Year and warned of tough high street conditions ahead.
It expected consumer spending to remain depressed and competition to be fierce as annual profits fell 15 per cent to £57.7m and like-for-like sales dropped 3.9 per cent.
Trading since the end of January had been slow, although Woolies did not provide precise figures because sales at the same stage of last year were inflated by Easter.
Chief executive Trevor Bish-Jones said the tough conditions overshadowed efforts to reshape the business, including shutting a number of its out-of-town stores.
Speculation is rife in the City that Woolies could be a takeover target.
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