Woolworths shareholders, who have seen their investment in the retailer more than halve in just under four years, will have to forsake some of their dividends as part of the company’s plan to slash debt in its Australian operations.

The biggest general retailer in SA by market capitalisation plans to reduce debt in Australia by more than 50% as it eyes a turnaround of its struggling David Jones chain.

Woolworths recently cut the valuation of David Jones by another A$437.4m (R4.5bn), meaning the department-store chain is now worth less than half of what the company paid for it in 2014. ..