Woolworths Ltd today (23 July) revealed it was able to grow its full-year sales, despite the Australian retailer’s supermarkets reporting falling prices.
In an announcement to the Australian stock exchange, Woolworths said sales rose by 4.7% in the year to 24 June. Food and liquor sales were up 3.8%, while home improvement sales jumped 24.7% and petrol sales gained 11.4%.
The company said its supermarket unit was able to grow its share of a market characterised by “subdued customer confidence” and “highly competitive trading conditions”. The retailer said it increased market share, customer numbers and items sold during the year.
On average, food prices fell 4.4% in the second half of the year. In the first six months, they were down 3.7% year-on-year. Deflation has been driven by the fierce price-war raging between Australia’s two largest supermarket groups, Woolworths and Coles.
“These results have been achieved at a time when our customers are benefiting from lower prices due to strong competition and deflation across our business,” CEO Grant O’Brien emphasised.