Australia's Woolworths beats first-quarter sales expectations (updated)

Woolworths

28/10/2025 21:58

Reports 2.7% rise in Q1 group sales to A$18.48 bln

Q2 to date Woolworths food retail sales up 5% (ex tobacco)

Q1 group e-commerce sales gain 13.2%

Rewrites paragraph 1, updates throughout with further information on results details and background

Oct 29 (Reuters) - Woolworths WOW.AX beat estimates for first-quarter sales on Wednesday, as deeper discounts, lower pricing and focus on e-commerce pulled in more value-conscious shoppers to its Australian supermarkets and apps.

The country's largest grocer has been leaning heavily on promotions and price cuts, while absorbing cost pressures across everyday items to win back customers increasingly fixated on finding the best deals.

After a slow start to the quarter, Woolworths stepped up investment in its domestic supermarkets to boost traffic and counter mounting competition, it said.

The group, which together with smaller rival Coles COL.AX controls about two-thirds of Australia's grocery market, has been working to repair its image after facing public backlash over shelf prices during a prolonged period of high inflation.

For the quarter ended October 5, the retailer posted group sales of A$18.48 billion ($12.01 billion), well above the estimates of A$17.91 billion, according to Visible Alpha.

It reported group sales of A$18 billion a year earlier.

Sales in its Australian food division rose 2.1%, a slowdown from last year's 3.8% growth, though shoppers responded strongly to more specials and larger savings despite persistent cost-of-living pressures.

"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," group CEO Amanda Bardwell said.

The group's e-commerce sales rose 13.2% during the quarter, with Woolworths flagging that customers were seeking "greater convenience."

Food retail sales under the Australia food operations rose 5%, excluding tobacco, in the second quarter so far, though it expects the full benefits of its renewed strategy to take time to emerge.

Prices for products across the Woolworths food retail segment, excluding tobacco, fell 0.3% in the three-month period, making it the seventh consecutive quarter of lower costs for customers.

($1 = 1.5389 Australian dollars)

 (Reporting by Shivangi Lahiri and Sneha Kumar in Bengaluru; Editing by Anil D'Silva)

 ((Sneha.Kumar@thomsonreuters.com;))