South Africa-based retailer Woolworths posted an above-forecast 24.2 percent profit increase in fiscal year-ending August, contributed by consistent consumer spending in its high-end department stores and repurchase of its outstanding shares.

During the fiscal year, Woolworths bought 286 million rand ($34.5 million) worth of its shares from the market with another 358 million rand ($43 million) worth to settle employee schemes.

Economic forecast for South Africa’s retail sales rate for the year was put at a 4.7 percent increase which was exceeded by a 3.6 percent margin, according to official data.

Similarly, Woolworths which also sells in Australia, announced a 12 percent surge in sales putting its sales at 28.6 billion rand ($3.4 billion).

Apparently, the recent wage increment above inflation levels and years of low interest rates of South Africa’s emerging economy, have encouraged spending. Another major South African retailer, Shoprite has said it would be expanding operation to reap from the opportunities the market has to offer.

Woolworths’ shares have jumped 44 percent as at August 2012.