Woolworths Group posts 9.5% sales growth in Big W segment

01 Jun '20

2 min read

Pic: Big W

Woolworths Group, an Australian diverse group of retail, posted 10.7 per cent sales rise to $16.49 billion in third quarter (Q3) FY 20 ended on April 5, 2020 compared to $14.89 billion in same period prior year. Group online sales during the quarter jumped 34 per cent to $817 million. Big W sales grew 9.5 per cent to $866 million (Q3 FY19: $791 million).

“Group sales growth for the quarter was strong across all businesses apart from Hotels following the mandatory closure due to government restrictions in late March. After a slower start to the quarter, Australian and New Zealand Food sales increased materially from late February,” Brad Banducci CEO at Woolworths Group, said in a press release.

While already trading well in January and February, Big W’s sales growth also accelerated in March, although the sales mix shifted towards lower-margin everyday needs and leisure.”

Australian Food sales were $11.1 billion ($10.03 billion). New Zealand Food sales grew to $1.8 billion (Australian Dollar).

Group also reported that category mix shifted in Q3 with home essentials, leisure and toy categories performing strongly while apparel sales declined in March. Comparable transactions declined, particularly during the Covid-19 period, as customers shopped less frequently but increased their average basket size.

During the quarter, Big W continued its Free Books for Kids initiative, partnering with The Wiggles. Three stores were closed during the quarter as part of the ongoing network review, with 180 stores at the end of the quarter.

“Our team have played a critical role during these unprecedented times and while the outlook for the rest of the financial year is uncertain, we remain in a strong operational and financial position,” Banducci said.

Fibre2Fashion News Desk (JL)

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