In its latest quarterly report, Woolworths Group (ASX:WOW) announced a 4.5% increase in total sales, reaching $18bn, for the 14-week period ending 6 October 2024. This growth reflects consumer demand and strategic pricing adjustments, particularly as inflation in food categories like meat and vegetables showed signs of moderation. CEO Amanda Bardwell emphasised the company's efforts to provide value during challenging economic times by expanding Own Brands and increasing promotional discounts.
Sales in the Australian Food division rose by 3.8%, with the group highlighting significant eCommerce growth at 23.6%, driven by convenience-oriented services like direct-to-boot and same-day delivery. However, the company noted a lower-margin sales mix due to increased promotional activities.
Woolworths also reported steady gains in its Australian B2B segment, with a 6.9% sales rise, bolstered by strong growth in PFD Foods. (PFD Foods provides a range of products, including frozen, chilled, and dry goods, fresh seafood, meat, paper products, and cleaning supplies to businesses across the hospitality, retail, and healthcare sectors. Woolworths had acquired a 65% stake in the company in 2021, with plans to acquire the remainder by 31 October 2024. Woolworths sold its stake in Endeavour Group (ASX:EDV) in early September in preparation for the final phase of the acquisition.)
In New Zealand, Woolworths saw a 2.7% sales boost, supported by brand transformation and a focus on fresh produce. The new W Living segment, established at the beginning of the 2025 financial year to bring together Woolworths' non-grocery businesses under a single umbrella, experienced a 17% increase, primarily from its recent Petstock acquisition, furthering Woolworths' diversification. W Living brands include BIG W, Healthylife and Woolworths MarketPlus.
Look ahead, Bardwell expressed cautious optimism. "We know our customers have many choices, and we don’t take their support for granted. Our goal is to offer the value and convenience that keep them coming back, especially through the critical holiday season.” The company is expected to continue its focus on cost-effective offerings and expanded digital engagement.
