Woolworths CEO Amanda Bardwell admits gross sales ‘below our aspirations’ as first quarter misses goal | USAEMALL.com

Woolworths chief executive Amanda Bardwell has conceded first quarter sales for Australia’s biggest supermarket chain have come in “below our aspirations”.

The grocer, which also owns Big W, on Tuesday reported group-wide sales of $18.5 billion — up 2.7 per cent on the same period last financial year.

Australian food sales were up 2.1 per cent while Woolworths food sales, excluding tobacco, rose 3.8 per cent.

Ms Bardwell said the benefits of changes Woolworths was making to improve value, convenience and availability for shoppers were starting to take effect but “there remains more to do”.

She said momentum was building in the second quarter, with Woolworths food sales, excluding tobacco, since October so far up 5 per cent.

That was supported by easing pressure at the tills, with average prices, excluding tobacco, compared to the previous year now down for seven consecutive quarters.

“In September, we increased customer engagement through Rewards offers, ecommerce investment and weekly promotions to drive traffic and sales with item growth showing a modest improvement in trend during the quarter,” Ms Bardwell said.

“We also added over 100 products to our Lower Shelf Price program, bringing the total to over 750 products with low double-digit unit growth across the program.”

The market update showed while sales of fresh and grocery foods were solid in the three months to the end of September, pet and baby items continued to underperform.

Tobacco sales halved but online sales soared 12.9 per cent.

Woolworths also reported a 39 per cent jump in the take-up of its “on demand” option — where orders can be delivered or picked up in under two hours — as customers seek greater convenience.

Big W continued to lag, with sales up just one per cent compared to the same period last year to $1.14b.

Clothing sales were up thanks to improved availability and a solid start to the summer season and aided by warm weather while new product launches and category expansions lifted toy sales. Home growth was supported by improved winter sell-through, driven by volume growth in new on-trend homeware ranges at low prices.