Johannesburg, Jan. 17 - South African food and clothing retailer Woolworths said on Thursday that sales had risen by 16.1 percent in the 26 weeks to Dec. 23, but comparable-store sales growth was only 8.5 percent.
It added that growth had reduced in recent months due to slackening demand for credit and that net bad debts had grown since the start of the financial year -- the latest sign that retailers are feeling strain due to higher interest rates.
Retail, clothing and general merchandise sales grew by 7.3 percent in total and 4.7 percent in comparable stores -- which excludes sales at new outlets -- at an average inflation rate of about 9.6 percent.
Food sales increased by 18.8 percent in total and by 9.7 percent in comparable stores, at an average inflation rate of approximately 12.1 percent.
Shares in Woolworths had fallen 0.28 percent to 14.40 rand by 0720 GMT, against a 0.42 percent rise in the Top-40 index.
Like other retailers, Woolworths has seen heady profits over the last few years due to historically low interest rates that spawned a consumer boom.
South Africa's central bank has raised interest rates by 400 basis points since June 2006 in an effort to curb rampant consumer spending, which has fuelled inflation.
The group's results for the half year to end-December are expected to be released Feb. 21.