Jane Harper
January 31, 2013
News Limited Network
GROCERY giant Woolworths says targeted customer promotions helped drive up food and liquor sales in the run up to Christmas.
The group today reported a rise in sales across all its retail groups, with total sales up 3.2 per cent to $30.7 billion for the 27 weeks to December 30.
Australian food and liquor sales were up 4.7 per cent to $20.48 billion. Key like-for-like sales, which strip out the impact of stores that have opened or closed, increased 2.4 per cent.
Smaller rival Coles yesterday said its like-for-like food and liquor sales were up 3.8 per cent for the six months to December.
Woolworths chief executive Grant O’Brien said the supermarket business had increased market share, customer numbers, basket size and items sold, compared with the same period last year.
“Effective promotional activities, leveraging our growing customer data capabilities, and the return to inflation in produce have assisted this result,” he said.
Total supermarket sales, including petrol stations and New Zealand stores, grew 3.7 per cent to $26.2 billion.
Discount department store Big W reported a 3.6 per cent rise in sales to $2.4 billion, while like-for-like sales were up 0.7 per cent.
Woolworths said the result was hit by continued weakness in electronics sales and by an estimated 4.9 per cent drop in prices across the Big W business during the six months.
“However, we continue to see solid growth in customer numbers and units sold,” the company said.
The Masters home improvement business, which launched in September 2011, increased sales nearly 54.6 per cent to $637 million for the half year. The group opened 10 new Masters stores during the six month period.
Masters chief executive Don Stallings said sales have been impacted by a weaker demand for building and construction materials from its trade customers.
Woolworths’ hotel sales for the half year were $759 million, up 19.3 per cent on the previous year. The company said the growth was driven by the acquisition of 29 hotels in New South Wales, Queensland and Western Australia.
Woolworths confirmed it expected its 2013 net profit to be between 3 per cent and 6 per cent higher than last year. Woolworths shares were down 0.5 per cent at $31.49 by 11am today.
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