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- Woolworths Group (WOW) posts an 8 per cent rise in sales over the three months to the end of March, bringing total sales to $16.3 billion for the quarter
- WOW CEO Brad Banducci says the rise stemmed from recovering supply chains, but he warns that Aussies are weary of ongoing inflationary pressures
- Woolworth’s Australian food arm total sales rose 7.6 per cent to $12.3 billion, while its New Zealand food arm sales were up 7 per cent to $1.8 billion
- Big W’s sales also grew by 5.7 per cent during the quarter to $1 billion
- Shares in WOW are down 1.29 per cent and trading at $38.40 at 3:15 pm AEST
Supermarket giant Woolworths Group (WOW) has posted an 8 per cent rise in sales over the three months to the end of March, reporting total sales of $16.3 billion for the quarter.
Additionally, the group posted a 5.1 per cent increase in its group eCommerce sales to $1.5 billion for the three-month period ending on April 2, 2023.
Woolworths Group CEO Brad Banducci attributed the increased sales to recovering supply chains but warned that Aussies were weary of ongoing inflationary pressures.
“In general, customer spending is stable. However, value-conscious customers are becoming more thoughtful about their discretionary spend, trading into more affordable options such as our own brands and looking for additional ways to save in-store or through our Digital, Rewards and eCommerce platforms,” Mr Banducci said.
Woolworths’ private-label items sales grew 9.1 per cent during the quarter as shoppers aimed to capitalise on better deals and value.
The giant announced that sales in its Australian Food business grew 7.6 per cent to $12.3 billion, while Australian B2B sales were up 16.4 per cent during the quarter, driven by strong growth across each of WOW’s major customer segments.
New Zealand food sales were boosted by 7 per cent in the quarter to $1.8 billion, although Woolworths said Cyclone Gabrielle affected item growth across its business.
Big W sales grew by 5.7 per cent during the March quarter to $1 billion but faced slight challenges, with apparel sales more challenged due to a slow start to seasonal winter sales.
Woolworths added that its average prices over the March quarter grew 5.8 per cent compared to the same time last year. The company claimed this was due to supplier cost price increases.
Mr Banducci said the group remained focused on improving customer experience, ensuring value for money and product availability.
“We remain cautiously optimistic that Woolworths Group is well-placed to navigate and respond to the current trading challenges successfully for all key stakeholders — our customers, our team, our suppliers and community partners, and our shareholders,” he said.
Shares in WOW were down 1.29 per cent and trading at $38.40 at 3:15 pm AEST.
