Woolworths Ltd said it shrugged off “consumer uncertainty” and deflation to post “solid” first-quarter sales.
Australia’s largest retailer said sales from continuing operations rose 6.1% to A$15.68bn (US$14.84bn) during the three months to 6 October. Total sales were slightly lower thanks to the impact of discontinued business, rising by 3%.
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The result was boosted by Woolworths’ Australian food and liquor business, where a focus on “price leadership” allowed it to grow customer numbers. The supermarket group said it was able to attract, on average, an additional 1.1m customers a week during the period. The supermarket business grew sales by 6.4% in the period in spite of food deflation which stood at 4.3%. Comparable-store sales for the quarter increased 2.5%
“This was a pleasing start to the year, underpinned by growth in our Australian food and liquor business. Our ongoing commitment to price leadership continues to drive unit and customer growth as we reinforce Woolworths’ position as Australia’s lowest priced full range supermarket,” CEO Grant O’Brien said.
