Woolworths posts strong H1 results

Date : 23 February 2018

Woolworths has reported H1 sales up 3.8% to AU$29,807m and earnings before interest and tax (EBIT) up 9.9% to AU$1,430m.

Australian Food sales up 4.9% to AU$19,339m

Woolwoths' Australian Food business has benefited significantly from the retailer's stronger focus on the customer in H1, with its Voice of the Customer (VOC) scores showing overall satisfaction reaching 82%, compared to 78% for the same period last year. Like-for-like (LFL) sales grew 4.9% in the half despite the retailer's investment in lowering prices resulting in 2.0% price deflation, with 4,200 items now included in its Low Price Always or Prices Dropped campaigns. In-store improvements also continued at pace with 37 renewals and 35 upgrades during the half, as well as its latest flagship concept being launched at Marrickville in Sydney a few weeks ago. During the half 10 net new stores opened, including one Metro.

Investment in supply chain operations

Huge sales growth in online grocery has been driven by a number of factors, not least the creation of WooliesX in June, which is tasked with investing in digital and data to drive an enhanced and seamless expereince. Pick up services have been rolled out to over 1,000 food sites in H1, improvements have been made to the speed and expereince on woolworths.com.au, plus second and third online customer fullfillment centres have opened in Brookvale, Sydney and West Footscray, Melbourne. The retailer will further look at accelerate this area in H2.