Woolworths has reported a 2.7 per cent increase in its group sales for the first quarter of this fiscal year, driven by food sales and the growth of its On Demand service.
The group’s total sales rose to $18.5 billion, with its e-commerce sales rising 13.2 per cent to $2.7 billion.
Australian food sales were up 2.1 per cent to $13.8 billion, driven by chilled, meat and fruit sales, while long-life sales lagged.
Drinks, snacking, and health and wellness drove long-life sales, with baby, pet, and home essentials posing challenges.
Tobacco sales declined 51.5 per cent as compared to the same period last year.
In Australia, WooliesX sales were up 12.9 per cent to $2.2 billion, driven by same-day and on-demand offerings.
Grocery-delivery service Milkrun saw the most growth across all of Woolworths’ e-commerce offerings, and is now available from 628 stores, with 113 new stores added during the quarter.
In New Zealand, total food sales were at $1.98 billion, a 2.5 per cent increase year-on-year, driven by e-commerce growth and sales in the categories of fruit and vegetables, meat, chilled, and frozen.
E-commerce sales in New Zealand grew 15.8 per cent, driven by consumer demand for convenience and the company’s same day services, with Milkrun expanding to 87 stores across the country.
Woolworths’ total W Living sales were up 3.3 per cent to $1.35 billion, driven by Petstock’s strong performance.
Petstock’s sales increased 15.8 per cent to $238 million following a network expansion of six stores and the inclusion of wholesale revenue from distributors Big Dog and TimePet.
Big W’s total sales increased by 1 per cent to $1.13 billion, reflecting a decline in items due to the cycling of winter clothing and clearance activity.
The brand’s e-commerce gross transaction value increased by 46.3 per cent to $213 million as a result of the Big W Market’s growth of 148 per cent.
“Looking ahead, we are cautiously optimistic about our key trading quarter and we have strong plans in place for our customers for the festive season, including a refreshed seasonal range,” said Woolworths group CEO Amanda Bardwell.
“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.”
