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First quarter sales results – Financial year 2019 14 weeks to 30 September 2018

Customer and brand metrics remain strong despite challenging quarter, reflecting underlying health of the business

 

Please view the full results here.

 

PROGRESS AGAINST KEY PRIORITIES

 
  • Australian Food’s Voice of Customer (VOC) scores remained strong in Q1’19 despite a more challenging start to the quarter with VOC NPS of 49% and store-controllable VOC of 82% in September
  • Australian Food sales growth of 1.9% (comparable sales: +1.8%) due to impact of removal of single-use plastic bags and a competitor continuity program; however, improved momentum in September and into October

 

Group online growth of 28% and Woolworths Online awarded the Canstar Blue 2018 award for most satisfied customers

 

Endeavour Drinks sales growth of 3%; comparable sales growth of 1.7% in a low growth market

 

 Sales growth in New Zealand Food of 2.6%; comparable growth of 4.0%

 

Another positive quarter of BIG W sales growth of 1.3% (comparable growth: +2.2%) driven by strong Kids and Leisure despite a slow start to sales of summer lines

 

Slower sales in ALH Hotels impacted by the cycling of key events

 

Progress in sale or IPO of Petrol

 

Progress on environment and community with over 600 million fewer single-use plastic bags, over $7.5 million raised for drought relief, 280 payments to drought-affected dairy farmers and 500 Junior Landcare Grants

 

Woolworths Group CEO, Brad Banducci said: “While it was a more challenging quarter for sales, customer and brand metrics were strong across the Group, especially in Australian Food reflecting the underlying health of our business.

 

“In Australian Food, comparable sales momentum improved materially in September compared to August leading to growth of 1.8% for the quarter with market share by the end of the quarter broadly returning to Q4’18 levels.

 

“In WooliesX, online sales increased 26% with Pick up remaining a key driver; Woolworths Rewards members increased to 11.1 million. Online sales across the Group increased by 28% with New Zealand Food and BIG W particularly strong.

 

“Comparable sales growth for Endeavour Drinks and ALH Hotels was lower than recent trend due to a low growth drinks market and ALH Hotels cycling strong events in the prior year while BIG W’s and New Zealand Food’s comparable sales growth are both a result of ongoing investment.

 

“All businesses are now focused on delivering an exceptional Christmas experience for our customers. I would like to finish by thanking our customers for their support in helping us do the right thing for the environment.”