Woolworths reported group sales of $19.3 billion for the first quarter of the FY27 financial year, a rise of 4.7%, The Nightly reported. Australian food retail sales for the quarter totalled $14.8 billion across the 14 weeks to 4 October, up 6.9% year-on-year from $13.9 billion.
The retailer attributed part of the stronger food sales result to momentum from its Disney Ooshies collectables campaign. Under the promotion, shoppers could collect plastic figurines after a $30 spend.
Demand was far higher than expected and stock disappeared from Woolworths stores with more than 10 days still to go before the advertised finish date of 25 August. Some schools banned the Ooshie toys and environmental critics described them as future landfill.
Average prices across Woolworths stores were lower than at the same point last year. More than 1,000 products are included in the retailer's lower shelf price campaign, including branded goods, which has cost Woolworths more than $100 million over the past year. Chief executive Amanda Bardwell pointed to a half-leg ham priced at $8 per kilogram as an example of festive value, noting that price had been held for four years and matched the price in 2014.
Sales in the W Living division, which includes Big W and Petstock, fell 0.7% to almost $1.4 billion. Big W's result was attributed to increased price discounting, a broader own-brand range, and weak performance in technology and appliances.
Bardwell described customers as dealing with rising interest rates, shrinking savings and higher costs, with fuel prices still elevated. Shoppers were watching their spending closely and weighing up each purchase, she said, adding that young families were under major financial pressure and would make trade-offs to prioritise making Christmas special for their children. The retailer said it was well positioned for the Christmas and holiday period and committed to making the season special and affordable for customers under significant pressure.
Woolworths reported that assaults on staff were running at more than 21 per day, amounting to around 7,800 incidents a year. Bardwell said the level of violence occurring across Woolworths was totally unacceptable and called on customers to treat staff with kindness and respect during the busy Christmas trading period, noting that many team members were in their first job.
Shoppers seeking to reduce grocery bills may find more than 1,000 products available at lower shelf prices at Woolworths, including branded goods, as the retailer has committed to investing in further value offerings.
Reporting: The Nightly
Background: The Guardian, 7NEWS
Written by Pick & Scroll News from the reporting and documents linked above.
