Food, liquor boosts Woolworths sales to $15.2bn

AAP
October 18, 2012

STRONG performances across its supermarket and Big W business have helped retail giant Woolworths chalk up a 4.3 per cent rise in first quarter sales.

The company said this morning sales for the 14 weeks to September 30 were $15.2 billion, up from $14.6 billion in the same period last year.

The group’s food and liquor sales from its Australian supermarkets grew by 4.6 per cent to $10.1 billion. Key like-for-like sales, which strip out the impact of stores that have opened or closed, increased 2.3 per cent.

Supermarkets managing director Tjeerd Jegen said customers had been responding well to promotions during the quarter and sales had been boosted by an increase in fresh produce prices.

The group’s discount department store Big W reported a strong performance, with sales up 6.2 per cent to $1.1 billion.

Chief executive Grant O’Brien said the stores had benefited from both higher customer numbers and an increase in items sold.

“This improving trend reflects work undertaken to improve marketing, range and price perception,” Mr O’Brien said.

The company’s new home improvement chain Masters continued to grow as the group opened seven new stores during the quarter, bringing the total to 22. Sales increased 62.2 per cent to $305 million, with Masters chief executive Don Stallings saying the business’s brand campaign launched in September had enjoyed a strong response.

Sales from Woolworths’ hotels for the quarter were $379 million, up 17.3 per cent from last year. Mr O’Brien said this was driven by the opening of 32 new hotels during the quarter and strong food and bar sales.

Woolworths’ consumer electronics sales fell 12.6 per cent to $285 million, as the group restructured the Dick Smith’s business ahead of its sale last month to Sydney private equity group Anchorage Capital Partners for $20 million.

Mr O’Brien said the group was now looking ahead to the crucial Christmas trading period.

“This was a pleasing start to the year with momentum created towards the end of the last financial year continuing through the first quarter,” he said.