Woolworths’ food sales have started to pull back as Sydneysiders return to dining out, but restored freedoms have sent shoppers back to Big W.
The pandemic continues to give Australian retailers a bumpy ride, with Woolworths seeing a slow down in food sales this month as lockdown restrictions in NSW ease.
The supermarket giant reported its September quarter results on Wednesday, showing group sales were up 7.8 per cent compared to the same quarter last year.
That included food sales in Australia growing by nearly 4 per cent and by almost 10 per cent in New Zealand as customers ate more at home, but store closures and trading restrictions slashed Big W sales by 17.5 per cent.
Metro Food Stores managed to increase sales by 8.7 per cent despite reduced foot traffic in city and transit stores, offset by new stores and strong sales in neighbourhood shops.
This month, however, customers in NSW started to return to eating out but Big W sales trends improved as Greater Sydney stores reopened, chief executive Brad Banducci said.
“Given recent closures and restrictions, Big W’s results will be even more dependent this year on the Christmas trading period,” he said.
“While the outlook remains uncertain, and there are likely to be challenges in the weeks ahead, we are excited about helping our customers celebrate a much-needed festive season.”
The retail giant said industry-wide shipping and distribution delays had led to slower than planned Christmas stock build-up but was not expected to have a significant impact on inventory levels during the all-important trading period.
Those supply issues had contributed to higher prices in the New Zealand food business, combined with labour shortages and raw material cost increases, particularly livestock.
In Australia, average prices decreased across all major categories except tobacco and meat.
Woolies noted in particular that fruit prices had fallen, partly due to increased supply of key items such as avocados and apples.
Business-to-business sales rocketed during the September quarter – surging more than fourfold largely due to the contentious $552m acquisition of family-owned PFD Food Services, which was given the green light by the Australian Competition and Consumer Commission in June.
Woolworths will hold its annual general meeting later on Wednesday.
Originally published as Food sales ease for supermarket giant Woolworths as Sydneysiders return to eating out
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