Masters Investment Paying Off For Woolworths Home Entertainment Brings Big W Unstuck
Masters sales for the quarter were $238 million, up 30.8% on the previous year. The number of Masters Stores at the end of the quarter remains unchanged at 49, in line with our plan for the period.
Not so good were Big W sales that were impacted by an exit from the consumer electronics home entertainment market.
Big W sales for the quarter were $1.1 billion, a decrease of 0.4% on the previous year. Woolworths said that Big W was adversely impacted with comparable sales decreasing 4.1% for the quarter, impacted by the cycling of Hard goods clearance activity in the prior year, particularly in the home entertainment category the Company said.
Rationalisation of the Big W business saw comparable sales decreased 0.8% for the quarter. The Company said that transformation will continue to adversely impact results in FY15.
Sales were also impacted by increased promotional activity in the current period to clear seasonal apparel following an unseasonably warm winter and ongoing price deflation.
Alistair McGeorge, Managing Director of Big W said: “While the business transformation will continue to adversely impact results, positive comparable sales growth in Soft goods during the quarter is an indication that we are making progress with our new offer. Children’s wear performed particularly well with a successful Baby event as well as the launch of Peter Morrissey Kids.”
Woolworths opened one new Big W store during the quarter, bringing the total to 183 and one new EziBuy store, bringing the total to five.
Woolworths is set to expand their branded appliance range via their Masters stores. Currently the Company sells a mix of house brand appliances and branded. A move into small appliances is being planned.