Woolworths trailing Coles in coronavirus panic buying race as sales rise 10.3pc
Woolworths has reported a weaker-than-expected sales result for the third quarter of the financial year, with the groceries giant failing to keep pace with rival Coles for just the second time since 2017.
Comparable sales across the company’s supermarkets division rose 10.3 per cent amid coronavirus panic buying. But that fell short of consensus estimates among analysts for growth of 11.8 per cent and below Coles’ rise of 13.1 per cent posted earlier in the week.
Overall revenue for all of Woolworths’ divisions in the three months to the end of March came in at $16.4 billion, up 10.7 per cent when compared to the same quarter last year. Food sales comprised of $11.1 billion of its total revenue.
Struggling department store Big W posted a 9.9 per cent increase in comparable sales despite worries shoppers would avoid the discount retailer amid stay-at-home orders. Woolworths still expects to make a “small profit” at Big W for the 2020 financial year.
The company’s Endeavour Drinks division, which includes liquor sellers BWS and Dan Murphy’s, grew comparable sales 8.9 per cent, driven almost entirely by purchases throughout March.
Chief executive Brad Banducci said the last four months had been some of the “most challenging periods” in Woolworths’ history, and warned the COVID-19 crisis was far from over.
“Our team have played a critical role during these unprecedented times and while the outlook for the rest of the financial year is uncertain, we remain in a strong operational and financial position,” he said.
“This has been a real team effort and we expect to pay a recognition bonus to our permanent front-line team members at the end of the financial year to reflect their over-and-above efforts.”
More to come.
Dominic Powell writes about the retail industry for the Sydney Morning Herald and The Age.
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