Woolworths low on festive cheer

Woolworths needs strong Christmas sales to meet its targets

Woolworths has said it needs a good Christmas to meet "the lower end" of full-year targets, but admitted it is cautious about festive trading.

The retailer made the comments as it said sales in stores open more than a year were down 6.5% in the 18 weeks to 2 December compared with a year ago.

Woolworths said that while sales of toys were strong, it had been hit by falling DVD and CD prices.

The retailer has been suffering from weak sales for some time.

"We will need to achieve a sales uplift for the remainder of the Christmas trading period," the retailer said.

"However, given the sales performance of the last two months, it is appropriate to be cautious."

By lunchtime on Tuesday, Woolworths' shares were down 9.5% at 33.25 pence.