Australian retailer Woolworths Ltd said price cuts and poor weather had an effect on sales in the third quarter of its financial year.

The supermarket giant today (20 April) announced a 3.8% increase in total group sales to A$14.1bn (US$14.57bn) in the 13 weeks to 1 April. Excluding fuel, sales rose 3.3%.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

Sales from continuing operations, which exclude the electronics unit Woolworths plans to sell, grew 3.9% to A$13.7bn.

However, same-store sales at its Australian food and liquor operations were, however, flat in the quarter.

Woolworths said the rate at which prices fell accelerated in the quarter. Deflation was 4.4% in the third quarter, compared to 4.1% in the previous three-month period.

Sales also hit by the impact of weather in the quarter and a year earlier. Cooler weather during the quarter across the Eastern States of Australia also affected sales, particularly for items such as ice cream and deli products including salads and cold meats.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Woolworths said the business was also lapping last year’s Queensland floods and Cyclone Yasi, which drove sales as a result of panic buying and the temporary closure of rival stores within some affected areas.

Total sales from Woolworths’ Australian food and liquor division rose 2.9% to A$9.4bn.

Sales from Woolworths’ supermarkets in New Zealand increased 2.9% to NZ$1.4bn (US$1.47bn). Comparable sales grew 2.9% in the period.

“Whilst the quarter saw an improving sales trend, we continue to remain cautious about the sales outlook for the fourth quarter, particularly given consumer and business uncertainty about the impact of the carbon tax and interest rates,” said Woolworths’ CEO Grant O’Brien.

Click here to view the full release.

Just Food Excellence Awards - The Benefits of Entering

Gain the recognition you deserve! The Just Food Excellence Awards celebrate innovation, leadership, and impact. By entering, you showcase your achievements, elevate your industry profile, and position yourself among top leaders driving food industry advancements. Don’t miss your chance to stand out—submit your entry today!

Nominate Now