These strategies served a dual function for the upmarket retailer, it sated the appetite of cash-strapped consumers and also helped Woolworths retain its customers.
"Though the group did feel the effects of the recession, the traditional Woolworths customer, who is a higher-end consumer, has more disposable income so the need to trade down during the recession was not necessary despite being budget conscious.
"They could still afford to buy at Woolworths because of innovative value strategies on Woolworth's part," said a retail analyst.
Woolworths estimates that earnings per share (EPS) for the period will be at a similar level to last year despite the profit of R380 million earned on the disposal of a portion of Woolworths Financial Services business included in the results of last year.
"The significant difference between HEPS and EPS relates primarily to this R380 million profit," said Woolworths.
The I-Net Bridge consensus forecast is for diluted headline earnings per share of 155.3 cents and a total dividend per share of 107.4 cents per share.
The group said that for the 52-week trading period to 27 June 2010, sales rose by 10.5%, with comparable sales up 5.7% from last year.
"There is a definite rise in spending confidence, consumers are slowly starting to spend more and more but I wouldn't get too excited.
"Consumers are still struggling with debt," said the analyst.
Woolworths seems to have regained some sales momentum from earlier in the year when the group reported that clothing and general merchandise sales increased by 9.7% for the 26 weeks to 27 December 2009, while comparable store sales growth for the same period was 4.4%.
This could be on the back of the FIFA 2010 World Cup where Woolworths, after conducting research over many months on previous World Cup's and other major sporting events, positioned itself with a sound strategy for the historic sporting milestone.
Extended trading hours at some of its larger stores, coupled with brightly displayed t-shirt and sweater stands had international and local customers coveting a piece of their own football magic.
"The interest in World Cup related product has definitely been buoyed by the energy around the tournament, ticket sales, "Football Fridays" and other related initiatives certainly do generate further interest," said Brett Kaplan, Divisional Director of Woolworths Clothing department.
Woolworths also launched its "Play the world" marketing campaign featuring local and international icons.
However, the group's Australian business Country Road did not fare as well, with estimated full year profit for the period seen at between 15% and 20% down on last year.
In March this year Woolworths announced that CEO-designate Ian Moir had put into place a structure (he is to replace current CEO Simon Susman in November 2010).
Moir, the group Managing Director for retail, is a former CEO of Country Road has been credited for turning Australia's Country Road into a well-established and successful brand, rescuing it from being a financially strained over-priced brand.
Said Ian Moir in March: "These changes will drive a more focussed business with simpler structures, less complexity and faster decision making. It will assist us to improve execution of the Woolworth's strategy.
"This is a strong and experienced team that will be focused on delivery."
Woolworths' full year results are due to be released on 26 August 2010.
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