Australian grocery retailer Woolworths Ltd has reported an increase in annual sales despite, it said, to the natural disasters in the country this year and increased consumer caution.
Woolworths, Australia’s largest retailer, said today (20 July) that sales, which include its general merchandise and hotel divisions, were up 4.7% to reach A$54.1bn (US$58.09bn). Excluding petrol, sales grew 4.1% to $48.1bn.
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Sales from the retailer’s supermarket division were up 4.6% for the year ended 26 June to reach A$44.3bn. Its Australian food and liquor division posted a 4.3% increase in sales to A$36.2bn, while sales from its supermarkets in New Zealand rose 3.4% to NZ$5.3bn (US$4.53bn).
The company said its Australian supermarkets increased market share, customer numbers, basket size and items sold over the year despite a “highly competitive and challenging environment”. It attributed the growth to the “customer acceptance” of its new 2015 store format and “overall price competitiveness”, as well as the quality and value of its fresh food.
Woolworths, meanwhile, said that the New Zealand economy remains challenging for retailers, particularly following the most recent Christchurch earthquake. Two damaged Countdown stores and one franchise outlet remain closed.
CEO Michael Luscombe said: “This result has been achieved in a very challenging year for retail which saw continuing deflationary effects, the disruption caused by natural disasters, increased consumer caution and higher domestic savings rates. This outcome reflects our ability to adapt and perform in all economic environments.”
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