Woolworths Group lifted Australian Food sales 6.9 per cent to $14.84 billion in the first quarter of FY27, driven by higher volumes as average prices fell for an eleventh straight quarter.
Group sales for the 14 weeks to 4 October, rose 4.7 per cent to $19.35 billion. eCommerce sales grew 16 per cent to $3.1 billion.
Woolworths Group CEO, Amanda Bardwell, said more customers were choosing Woolworths first.
“Customers continue to respond to the progress we have made to improve value, enhance our range and provide more convenience,” Bardwell said.
Comparable sales at Woolworths Food Retail rose 6.1 per cent, with comparable item growth of four per cent driven by more transactions. Woolworths said the Disney Ooshies collectibles campaign lifted sales in the first half of the quarter, but growth stayed strong after it ended.
Fresh sales grew 8.1 per cent, led by meat, particularly beef mince and value-added proteins, along with chilled and bakery. Long Life sales rose 5.9 per cent, with health and international foods, drinks, freezer and snacking the strongest categories.
Average prices, excluding tobacco, fell 0.7 per cent. Woolworths’ Lower Shelf Price program now covers more than 1000 products, including more branded lines.
Own and exclusive brand sales rose 8.5 per cent, ahead of total sales growth, with 151 new own brand products launched in the quarter, including sausages and confectionery.
eCommerce penetration reached 18.2 per cent, up two points, with eComX sales up 20.2 per cent. Almost half of delivery orders were fulfilled within two hours.
Cartology, Woolworths’ retail media business, posted largely flat revenue. Growth in digital media was offset by in-store and publishing, though Woolworths said supplier uptake of events such as Ooshies remained strong.
In Australian B2B, sales rose 4.4 per cent to $1.63 billion. Foodservice distributor PFD grew 3.9 per cent, led by quick service restaurants, while Woolworths said other foodservice customers were feeling cost-of-living pressure. Export meat sales rose 1.6 per cent, with higher global beef prices offset by lower volumes.
New Zealand Food sales rose 2.9 per cent to NZ$2.25 billion, slowing after Ooshies in a weakening economy and highly competitive market. BIG W sales fell 0.9 per cent.
Bardwell said Australian Food sales growth in October was broadly in line with post-Ooshies trading in the first quarter. She noted many customers remain under significant pressure, citing a late September interest rate rise and rising fuel prices.
The result follows a stronger FY26, when Australian Food sales rose 4.6 per cent to $53.85 billion and segment EBIT grew 8.5 per cent.
