Woolworths Group is focused on rebuilding momentum, with its Q1 results revealing there remains “more to do”.

The Group reported Q1 F26 sales of $18.5 billion, up 2.7% on the same period last year. Australian Food sales were up 2.1%, with Woolworths Food Retail sales up 3.8% (ex. tobacco). Group ecommerce sales were up 13.2%.

“While the Q1 sales performance was below our aspirations and there remains more to do, the changes we are making to improve value, convenience and availability are being recognised by our customers,” said Woolworths Group CEO Amanda Bardwell.

“Group VOC NPS increased by three points compared to the prior year and four points compared to Q4 F25, largely driven by improvements in Australian Food and New Zealand Food.”

Australian Food

Woolworths Food Retail sales amounted to $13,731 million in the quarter. While store-originated sales continue to hold the largest share, there has been strong growth in pick-up (up 19.4%) and delivery (up 8.9%) ecommerce sales. On demand growth remained a highlight, with ecommerce sales delivered or picked up in under two hours increased by 39% as customers seek greater convenience.

“In September, we increased customer engagement through Rewards offers, ecommerce investment and weekly promotions to drive traffic and sales with item growth showing a modest improvement in trend during the quarter,” Ms Bardwell said.

Woolworths also added over 100 products to its Lower Shelf Price program, bringing the total to over 750 products with low double-digit unit growth across the program and supporting a strong improvement in Value for Money VOC.

“Average prices (ex. tobacco) compared to the prior year have now declined for seven consecutive quarters,” Ms Bardwell said.

By category, fresh and grocery food were solid in Q1 while pet and baby continued to underperform in store and tobacco sales declined by 51%.

During the quarter, nine Woolworths supermarkets and one Metro renewal was completed, and three net new supermarkets were opened.

Broader group results

Australian B2B total sales increased by 6.2% in Q1 F26 to $1,565 million with sales driven by growth in B2B Food (up 13.1% to $981 million). PFD sales increased by 6.2% (normalised), with growth driven by the foodservice and QSR channels.

Cartology revenue increased by 4.6% driven by growth in Australian Food, particularly in digital. Highlights for the quarter include the roll out of Ads Manager, a self-service reporting platform for customers.

Everyday Rewards & Services sales growth was driven by Everyday Mobile and Insurance with combined customer growth of 5% compared to the prior year. Everyday Rewards active members reached 10.5 million, an increase of 4.5% on the prior year. Everyday Rewards also continued to expand its partnerships with ANZ and American Express both launching in October.

New Zealand Food’s total sales increased by 3.2% in Q1 F26 to $2,189 million largely driven by strong ecommerce growth (up 15.8% with ecommerce penetration reaching 16.8%). During the quarter, one store was opened, one Metro was closed and one SuperValue store was converted to a FreshChoice. A further 24 stores were rebranded to Woolworths New Zealand in Q1 with all stores expected to be rebranded by the end of Q2.

W Living total sales in Q1 F26 increased by 3.3% to $1,390 million reflecting strong Petstock sales growth (up 15.8% in Q1 to $238 million). BIG W total sales increased by 1.0% in Q1 to $1,138 million. MyDeal saw sales of $14 million until the closure of the customer website on 30 September.

Cautious optimism for Christmas

Looking ahead, Ms Bardwell said Woolworths Group is “cautiously optimistic” about its key trading quarter (Q2).

“We have strong plans in place for our customers for the festive season including a refreshed seasonal range,” she said.

“Woolworths Food Retail sales in Q2 to date have increased by 3.2% (5.0% ex. tobacco) as we continue our focus on rebuilding momentum.

“It will take some time for the full benefits of our strategic actions to be realised but we remain confident the steps we are taking will lead to meaningful improvements for our customers and our shareholders.”