Woolworths Group has reported a 2.7 per cent increase in group sales to $18.5 billion for the 14-week first quarter ended 5 October. The group’s Australian Food sales rose 3.2 per cent in the first weeks of October and will be launching more than 650 new products for the Christmas holiday period.
CEO Amanda Bardwell said while the results were below internal expectations, they reflected early progress from strategic changes aimed at improving value, convenience and availability.
“We’re cautiously optimistic about our key trading quarter ahead, and we have strong plans in place for the festive season,” Bardwell said.
Food and B2B Divisions Drive Growth
Australian Food sales rose 2.1 per cent to $13.9 billion, with Woolworths Food Retail increasing 3.8 per cent excluding tobacco. Gains were led by the fresh and grocery categories, offsetting weaker results in pet and baby products. Average prices excluding tobacco declined 0.3 per cent – the seventh consecutive quarter of lower prices – supported by the retailer’s expanded Lower Shelf Price program.
Australian B2B sales grew 6.2 per cent to $1.57 billion, driven by foodservice and export meat growth through PFD Foods and international beef markets. The segment benefited from the alignment of retail calendars, which added an extra trading week compared with the prior year.
Digital Momentum Builds
Group eCommerce sales surged 13.2 per cent to $2.7 billion, with penetration reaching 16.2 per cent of total Australian Food sales. Woolworths’ on-demand and same-day services remain key growth drivers, while MILKRUN – now available in 628 stores – continues to expand rapidly. Pick-up orders rose 19.4 per cent, and delivery orders fulfilled within two hours jumped 39 per cent.
New Zealand and Pet Divisions Solid
In New Zealand, food sales increased 3.2 per cent in local currency terms to NZD 2.19 billion, supported by 15.8 per cent growth in eCommerce and stronger performances in fruit, meat, and chilled categories. Rebranding to Woolworths New Zealand is on track to complete by the end of Q2.
W Living, which includes BIG W, Petstock, and MyDeal, lifted 3.3 per cent to $1.39 billion, buoyed by a 15.8 per cent increase in Petstock sales following network expansion and the inclusion of wholesale revenues from distributors Big Dog and TimePet.
Customer Metrics Improve
Customer satisfaction continued to strengthen, with Woolworths’ Group Net Promoter Score rising three points year-on-year to 49. Bardwell said customer recognition of Woolworths’ focus on value was evident.
“Average prices have now declined for seven consecutive quarters, and customers are responding positively,” she said.
Outlook
Looking ahead, Woolworths expects improved momentum through the key Christmas trading period, with Food Retail sales in Q2 to date already up 3.2 per cent (5.0 per cent excluding tobacco).
The retailer said it will continue investing in price, convenience, and digital platforms to deliver meaningful long-term improvements for both customers and shareholders.
