Thursday, May 30, 2024

Woolworths sales rise during ‘challenging’ quarter

Woolworths has released its 2024 third quarter results, with sales revenue increasing by 2.8% to $16.8 billion.

Across the retailer’s Australian food division, total sales increased 1.5% to $12.58 billion.

“It was a challenging quarter across the Group with a noticeable shift in customer sentiment and shopping behaviours since Christmas,” says Woolworths Group CEO Brad Banducci.

“Customer metrics and sales growth across the Group have been impacted but encouragingly unit volumes and customer metrics improved as the quarter progressed and we expect more stable trading in Q4.”

Supermarkets

Woolworths’ supermarkets sales for Q3 were $10,512 million, down 0.8% (up 0.4% ex tobacco) on the prior year.

E-commerce momentum remained strong with sales increasing 18.4% to $1,539 million.

Woolworths Metro Stores sales increased 2.6% to $397 million.

Stores

During the quarter, seven Woolworths supermarket renewals were completed, two supermarkets were opened, one supermarket was closed, and one new Woolworths Metro store was opened.

At quarter end, the total network comprised 1002 Woolworths supermarkets, 104 Woolworths Metro stores, 719 direct to boots, seven CFCs, three eStores and 56 mini Woolies.

What’s next

Looking ahead, Mr Banducci says Woolworths’ focus for the rest of the financial year remains on providing value for its customers reflecting their cost-of-living pressures.

“We expect trading conditions to be challenging for the next 12 months due to competition for customer shopping baskets and as inflation returns to a very low single digit range,” he says.

“However, we are well positioned to manage this more challenging environment through an ongoing focus on our customers and team, and our end-to-end productivity plans.”

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