Woolworths Australian Food total sales increased by 6.9% in Q1 with strong customer engagement driven by value initiatives, promotional activity and the Ooshies campaign in the first half of the quarter.
“We are pleased with the start to the year in Australian Food with more customers choosing Woolworths first,” said Woolworths Group CEO Amanda Bardwell.
“Customers continue to respond to the progress we have made to improve value, enhance our range and provide more convenience.”
Woolworths Food Retail
Woolworths Supermarkets store-originated sales grew 4.3% driven by strong item growth in core Fresh and Grocery Food categories. Everyday Needs sales grew modestly in the quarter with a stronger performance early in the quarter benefitting from supplier participation in Ooshies.
Own and exclusive brand sales increased 8.5%in Q1 supported by a strong performance in Fresh and Meat. During the quarter, 151 new own brand products were launched, including expanded value lines such as sausages and confectionery.
Average prices (ex Tobacco) in Q1 declined by 0.7% reflecting the eleventh consecutive quarter of lower average prices. Lower prices were supported by the expansion of the Lower Shelf Price program and price reductions, particularly in Everyday Needs categories.
“Lower Shelf Price continued to grow during the quarter with over 1000 products now part of the range, including more branded favourites, and we have seen record boosting of Everyday Rewards offers by members as customers continue to look for value,” said Ms Bardwell.
During the quarter two Woolworths Supermarkets were opened, one Metro was closed and14 renewals were completed.
WooliesX
eComX sales increased by 20.2% in Q1 with penetration reaching 18.2%, up 2 pts on the prior year. On Demand continues to drive eCommerce delivery growth at Woolworths, with 48% of delivery orders fulfilled within two hours, up 5 pts on the prior year. This was supported by the expansion of On Demand fulfilment capabilities with 703 stores offering Direct to Boot Now and Delivery Now available from 776 stores at the end of the quarter.
Complementary services (Media, Wpay, Rewards& Services) sales increased by 4.4% in Q1. Cartology revenue was largely unchanged on the prior year with strong digital media growth, led by Sponsored Search and Off Network, offset by InStore and Publishing channels. Supplier uptake of major events during the quarter remained strong, including Ooshies and Fissler.
Everyday Rewards member engagement continued to increase in the quarter with active members up 3.7%to 10.9 million and member sales growing ahead of non-member sales. Member engagement was supported by strong promotional campaigns in the period including Ooshies and Fissler with strong growth in boosting members.
Australian B2B
B2B Food sales increased by 4.4% in Q1 driven primarily by PFD. PFD sales increased by 3.9% with growth in the QSR channel remaining the highlight. Food Service channel growth improved relative to Q4 F26; however, it was somewhat offset by the known exit of some customers in the Key Accounts channel with new customers coming on board in Q2.
Export meat sales increased by 1.6% in Q1 with higher prices across the international beef market offset by lower volume available to sell.
B2B Supply Chain sales increased by 4.5% largely driven by double-digit PC+ revenue growth through higher volumes in domestic freight and rail as partners seek cost-efficient transport solutions. SIW sales were broadly flat as Grocery volume growth was offset by Tobacco sales declines.
Outlook
In October to date, sales growth in Australian Food (Woolworths Food Retail) is broadly in line with the Q1 post Ooshies trading and the business is well positioned for the key Christmas and holiday period, says Ms Bardwell.
“We recognise that many of our customers remain under significant pressure and we are committed to making Christmas special and affordable with a range of over 500 budget-conscious festive products,” she said.
