Woolworths sales for the September quarter are 4.1 percent higher on the corresponding quarter last year, with gross sales of $13.9 billion during the reporting period.
Woolworths’ Chief Executive, Michael Luscombe said the September quarter result was a positive one given the deflationary effect of the high Australian dollar on gross sales.
“This sales result is a solid start to the financial year which continues to hold underlying challenges for the retail sector such as tighter consumer spending and the deflationary impacts of the stronger Australian dollar” said Mr Luscombe.
Woolworths food and liquor sales in the September quarter were 3.1 percent higher, with food prices increasing 1.8 percent on the back of increased tobacco excise in the period and contributing to the gross sales increase. Woolworths’ Petrol business increased its sales 3.3 percent in the year, with fuel prices in line with last year over the quarter (123.5c/litre last year, and 123.3c/litre this year).
Woolworths’ Big W department store saw a 2.7 percent slump in sales compared to last year, with the effects of last year’s Federal Government stimulus package absent in this years results. Price deflation played a role in Big W’s poor result, with an increase in total customer numbers recorded, but the average price paid per visit falling.
Woolworths’ consumer electronics brand Dick Smith recorded a 0.9 percent increase in sales for the September quarter compared to last year, with consumers tightening spending with increased competition in the sector and the strong Australian dollar pushing down prices for consumer electronics.