Australian and New Zealand food sales rose, but Big W took a hit as consumers tightened discretionary spending.
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Woolworths Group’s third-quarter sales rose 2.8 per cent year over year to $16.8 billion, amid growth in the majority of its businesses.
Australian food sales rose 1.5 per cent to $12.58 billion while Australian B2B sales grew 3.2 per cent to $1.10 billion.
Moreover, New Zealand food sales increased 1.4 per cent to $1.88 billion. However, Big W sales fell 4.1 per cent to $1.0 billion.
“Big W total sales for the quarter declined by 4.1 per cent reflecting increased consumer caution and downtrading most evident among budget customers. Our play and everyday segments have been solid but there remains more to do in clothing and home,” said Woolworths CEO Brad Banducci.
“Sales declines in April have been broadly in line with the third quarter with a slow start to autumn/winter clothing sales creating some downside risk to our previous expectations of EBIT break even in the second half.”
Meanwhile, its other segment’s sales stood at $238 million with the inclusion of Petstock for the first time beginning in 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,” said Banducci.
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