Woolworths Group CEO Amanda Bardwell was pleased with the start of the year in Australian Food, with more customers choosing Woolworths first.
She said customers have continued to respond to progress made to improve value, enhance our range, and provide more convenience.
Australian Food total sales increased by 6.9 percent in Q1, with Woolworths Food Retail sales also increasing by 6.9 percent driven by strong item growth. Sales growth in the early part of the quarter benefitted from the successful Disney Ooshies collectibles campaign, but growth remained strong throughout the quarter.
eComX sales increased by 20.2 percent in Q1 with On Demand remaining a key growth driver.
Bardwell said Lower Shelf Price continued to grow during the quarter, with over 1,000 products now part of the range, including more branded favourites, and noted record growth in Everyday Rewards offers as customers continue to look for value. This has contributed to average prices declining on the prior year again this quarter.
Australian B2B sales increased 4.4 percent with PFD sales remaining solid, driven by QSR; however, Food Service sales are seeing some impact from increased cost-of-living pressure.
In W Living, BIG W sales declined 0.9 percent in a deteriorating discretionary retail environment. Three of the four businesses grew items in the quarter, but Everyday remains challenged.
Petstock sales grew 6.1 percent in the quarter with strong eCommerce growth.
“In October to date, sales growth in Australian Food (Woolworths Food Retail) is broadly in line with the Q1 post Ooshies trading, and we are well positioned for the key Christmas and holiday period,” said Bardwell.
“We recognise that many of our customers remain under significant pressure and we are committed to making Christmas special and affordable with a range of over 500 budget-conscious festive products.”
In New Zealand Food, sales increased by 2.9 per cent in Q1, also benefiting from Ooshies early in the quarter. Sales growth has moderated since the campaign ended, reflecting a weakening macro environment and a highly competitive market.
“In New Zealand, Food and BIG W, our focus remains on building sales momentum,” she added.
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