Woolworths Holdings Ltd. is reorienting its business around its upmarket South African food operations, putting its best-performing division at the center of the group as new Chief Executive Officer Sam Ngumeni seeks to revive growth after annual profit declined. The Cape Town-based retailer said its "market-leading premium food ecosystem" will become its primary engine of value creation, with beauty and home used to extend its relationship with grocery customers into a broader lifestyle offering. The shift comes as Woolworths contends with weaker performance in fashion and continues efforts to turn around its Australian Country Road Group.

Ngumeni, who took over earlier this year, faces the challenge of stabilizing the group's financial performance while executing a strategic pivot toward higher-margin segments. The retailer's focus on its food division signals a strategic realignment to drive future growth.