Woolworths Holdings Limited - Chairman`s Statement

Woolworths Holdings Limited - Chairman`s Statement                              
WOOLWORTHS HOLDINGS LIMITED                                                     
(Incorporated in the Republic of South Africa)                                  
(Registration Number 1929/001986/06)                                            
Share code: WHL   ISIN: ZAE000028288                                            
("Woolworths" or "the company")                                                 
CHAIRMAN`S STATEMENT                                                            
TO THE ANNUAL GENERAL MEETING                                                   
HELD ON THURSDAY, 21 NOVEMBER 2002                                              
Trading conditions in both South Africa and Australia for the quarter have been 
better than expected.  The economies of South Africa, Australia and New Zealand 
have all been less affected by the downturn in world business activity that has 
been seen in the Northern Hemisphere.                                           
In each country property prices remain strong.  In South Africa`s case, the tax 
benefits continued to flow through to the consumer`s pockets.  All three        
currencies have strengthened somewhat against the dollar giving further rise to 
consumer confidence.                                                            
In South Africa Woolworths has continued to benefit from the strong consumer    
spending that is occurring throughout retail and are gaining share of market in 
both foods and textiles.  Trading has been slightly ahead of budget.            
Inflation still remains very strong with foods showing a level of some 17%, the 
highest we have had for many years and clothing not much lower at 13 - 14%.     
We expect the impact of the interest hikes to start to bite from now on and     
therefore expect trading conditions to be tougher for the balance of the year.  
The current economic data in Australia and New Zealand show that both economies 
continue to grow.  However, in the case of Australia, a national drought and the
ongoing uncertainty of offshore prospects will begin to weigh on the growth in  
the coming year.  The Australian Reserve Bank has moved the interest rate policy
to a neutral status to offset these downside risks.  In New Zealand, the market 
also anticipates the Reserve Bank to hold interest rates.                       
In Country Road`s case, sales and profitability are on budget and up on last    
year.  They have now sold their ranges out to June next year to their wholesale 
customers who are positive about those ranges in terms of fashionability,       
quality and price.                                                              
Whilst we do not anticipate the strength of the first quarter to flow throughout
the year, we do anticipate a real growth in earnings for the full period.       
END                                                                             
Contact : Simon Susman    :   Chief Executive Officer  : 083 252 5696           
          Norman Thomson  :   Finance Director         : 083 251 6354           
Date: 21/11/2002 03:40:00 PM Supplied by www.sharenet.co.za                     
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