Woolworths’ profits declined for the first time in eight years, the retailer’s annual results have shown. In the immediate aftermath, shares also closed down at R64.35.

Woolworths’ profits have declined as headline earning per share fell 7.6% to 420.9c per share. The South African retailer was badly hit by current economic conditions as the country struggles through the recession, which formally declared earlier this year. Company executives also blamed the current political uncertainty in the country which, they said, has contributed to the creation of a tough trading environment.

The group’s profits were somewhat rescued by its grocery operation which, saw a sales increase of 8.6% as the retailer opened 11 new stores in 2017. According to Trendtype’s Retail Database Tracker, Woolworths had 637 operating outlets last year.

Following announcement of the annual results, the company’s shares – which are listed in the South African JSE – fell 2.54% to R64.35 ($4.88).

On top of the tougher trading and economic conditions, in the past year, Woolworths has also had to contend with greater competition from other South African retailers. Shoprite especially has admittedly sought to capture a slice of Woolworths’ upmarket segment by strengthening its offer of high-end consumer goods.

Woolworths has said that it is now focused in balancing the bad results in South Africa with business development in Australia. In 2014, the company bought Australian department store David Jones and it will now try to export its high-end grocery shopping concept to Australia.

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