In the March quarter, Woolworths Group reported strong sales growth of 8% to reach $16.34 billion, with the company’s food businesses leading the way. This growth was due in part to improving product availability as supply chains slowly recovered. Woolworths’ Australian Food business, in particular, saw a significant increase in sales of 7.6% to reach $12.3 billion, with same-store sales also up by 6.6%. The company’s ecommerce platform, WooliesX, also contributed to the overall growth, with sales increasing by 9% to $1.29 billion.
In addition, sales of Woolworths’ private-label items rose by 9.1% as shoppers continued to look for better value in light of tighter household budgets. While concerns about inflation remain, Woolworths CEO Brad Banducci noted that the company was seeing signs of moderation in food prices. Despite this, Woolworths remains committed to providing its customers with great value across their shopping baskets, with a focus on affordable protein, leveraging its own and exclusive brands, and offering personalized Everyday Rewards member deals.
Furthermore, Woolworths’ Australian B2B sales rose by 16.4%, and its PFD business saw a 28% increase in sales, driven by strong growth across all its major customer segments. Meanwhile, sales at the company’s discount chain, Big W, rose by 5.7% to $1.046 billion, with comparable sales increasing by 5.5%.
Overall, Woolworths’ NZ food business, Countdown, also saw a sales increase of 8.5% to reach $2.018 billion, despite continuing supply chain challenges, particularly after the impact of Cyclone Gabrielle. Despite these challenges, Woolworths remains optimistic about its future growth prospects, and the company’s sales results in the March quarter exceeded the expectations of most analysts.
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