Woolworths Ltd has reported another set of weak results for its latest fiscal quarter, hurt by stagnating food and liquor sales.
Sales for the third quarter were down 0.3% to A$14.9bn, while underlying revenues (excl. home improvement) were down 0.7% to A$14.4bn. The group’s core supermarket and liquor division saw sales edge up 0.4% to A$10.66bn, but they declined by 0.9% on a calendar-adjusted basis. Meanwhile, the Big W chain was hit by a 4.6% drop to A$865m.
Woolworths said volumes and customer traffic rose during the period, but this was offset by “high levels of deflation, predominantly from our price investment”. CEO Brad Banducci admitted: “We tried to do too much in the first half and that led us to not doing anything very well”. He added: “It will be a three to five year journey to rebuild Woolworths supermarkets, but we are confident we are on the right track.”
Banducci also kicked off a major review of the group, saying Woolworths will now take a more “objective” approach to its non-food operations. The review will look at the plans for new store openings, the recently-revamped customer loyalty programme, and options for more cost savings.
- The rapid growth of ALDI over five years, added to the increasing popularity of private label, have put pressure on Woolworhs and Coles
- …with the impact on Woolworths being obvious in these figures…
- Watch this space…