Woolworths: challenging quarter, good results

The group recorded a significant increase in its food businesses revenue at $12.3 billion, compared to its Big W chain, where store closures due to COVID-19 lockdowns saw a 17.5 per cent decrease in sales. 

Banducci said as restrictions have started to ease the results have swapped. “In October to date, sales have slowed in Australian Food as New South Wales lockdown restrictions have eased. In contrast, Big W sales trends have improved as Greater Sydney stores reopen. “Given recent closures and restrictions, Big W’s results will be even more dependent this year on the Christmas trading period,” said Banducci. The group’s B2C ecommerce revenue accounted for 11.4 per cent of retail sales, a 53 per cent jump to $1.4 billion. Supermarket store sales for Q1 were down 0.6 per cent, recording $10.6 billion in revenue. It’s $22 million increase pcp in adjacency revenue to $51 million was due to Endeavour Group’s partnership services. Woolworths’ 65 per cent acquisition in PFD Foods in June was a major player in its B2B results. More than 66 per cent of the $656 million B2B food sales made this Q1 were related to PFD Foods. Banducci said a focus on health has been a high priority. “We will continue to prioritise health, safety and wellbeing of our team and customers. The vaccination roadmap is an example of this commitment,” he said. Woolworths’ vaccination roadmap released last week highlighted that all team members must be vaccinated in the coming months unless a legitimate exemption is provided.