Woolworths total sales rise 2.8 percent

Woolworths Group saw its total sales rise 2.8 percent to $16.8 billion, according to its latest third quarter sales results. 

The major retailer also saw its group ecommerce sales reach $1.93 billion, a 17.6 percent increase from the same quarter last year. 

However, Woolworths also noted its group ‘voice of the customer’ dropped four points from March 2023. 

The supermarket chain posted its results Thursday with outgoing Woolworths Group CEO, Brad Banducci noting, “It was a challenging quarter across the group with a noticeable shift in customer sentiment and shopping behaviours since Christmas.

“Customer metrics and sales growth across the group have been impacted but encouragingly unit volumes and customer metrics improved as the quarter progressed and we expect more stable trading in Q4.”

Banducci added that its total food sales increased by 1.5 percent as well. 

“Adjusted total sales growth in April was broadly in line with Q3 with inflation continuing to moderate and items showing ongoing modest growth.

“WooliesX ecommerce sales momentum continued during the quarter increasing by 18.4 percent driven by a double-digit increase in active customers and item growth.  

“Convenience remains critically important for customers with 86 percent of B2C ecommerce orders now fulfilled within 24 hours of order placement.  

He said that the country's sales rose by 3.2 percent with sales growth impacted by the exit of its international businesses in the second half of last year. 

“BIG W total sales for the quarter declined by 4.1 percent reflecting increased consumer caution and downtrading most evident among budget customers,” Banducci added. 

“Our ‘Play and Everyday’ segments have been solid but there remains more to do in clothing and home. 

“Sales declines in April have been broadly in line with Q3 with a slow start to autumn/winter clothing sales creating some downside risk to our previous expectations of EBIT breakeven in H2. 

Banducci also said the inclusion of the Petstock division helped boost other sale areas “for the first time from January.”

“Petstock sales were marginally below the prior year reflecting lower sales in discretionary categories. The process for the disposal of Petstock stores required under the ACCC undertaking is well progressed and remains subject to ACCC approval.”

He said Woolworths' focus for the rest of the 2024 financial year “remains on providing value for our customers reflecting their cost-of-living pressures.

“We expect trading conditions to be challenging for the next 12 months due to competition for customer shopping baskets and as inflation returns to a very low single-digit range. 

“However, we are well positioned to manage this more challenging environment through an ongoing focus on our customers and team and our end-to-end productivity plans.”