Woolworths reports “solid” Q1 results

Posted by Nicole Eckersley on 21st October 2010

Woolworths logoWoolworths yesterday announced its first quarter results, with sales for the group up 4.2% to 13.9 billion, excluding petrol. Sales in the Australian food and liquor division were up 3.2% to 9.3 billion, and comparable sales were up 2%. New Zealand sales were up 4.7% to 1.37 billion.

In addition to growing sales, the company opened one new supermarket and fifteen new liquor stores in Australia, and completed refurbishment of nine supermarkets and nine liquor stores. New Zealand opened four new supermarkets and refurbished a further five.

“This sales result is a solid start to the financial year which continues to hold underlying challenges for the retail sector such as tighter consumer spending and the deflationary impacts of the Australian dollar,” said Woolworths CEO Michael Luscombe.

Woolworths said that its “strategy of reducing shelf prices, continuing to evolve new formats and customer engagement have enabled us to maintain market share and grow customer numbers, items sold and basket size”.

The company attributed a comparable sales rise of 4.5% to the success of the “improved customer offer” – a combination of the new format stores, increased private-label offerings in the Home Brand and Select ranges, and improved range and in-stocks.