Discount store group Big W is on track to deliver close to 30% growth according to Woolworths management analysts are tipping the next quarter could “go soft”.
The business that has undergone major management shakeup this year, including the exit of their CEO and Marketing Director has moved to expand their ranging of CE and Appliances which now include several known brands.
The increase in sales were achieved as consumers moved to better control their expenditure and went looking for value brands.
Earlier today Big W owner Woolworths said that sales for the first eight weeks of fiscal 2023 for its flagship Australian supermarkets arm had fallen 0.5 per cent as the retailer cycled two years of high sales growth rates triggered by Covid-19 and lockdowns.
Chief executive Brad Banducci also outlined the Companies response to the hack attack on MyDeal trading platform that the business recently acquired.
He claimed that management had taken swift action to deal with a breach by hackers which impacted 2.2m of its customers.
He said there was no impact to Woolworths own customer data as that was kept on a separate platform to MyDeal.
“While this was an isolated incident, we take cyber security and data privacy for the entire Group very seriously and we need to remain vigilant when it comes to the protection of customer data,” Mr Banducci said as Companies such as Optus, Telstra, and Medibank who admitted today that “all” of their customers data had been stolen face similar problems.
Banducci said that sales in the first eight weeks of fiscal 2023 for its Australian food arm Woolworths Supermarkets, were down 0.5 per cent as it cycled two consecutive years of elevated sales growth.
Shares in the business fell over 3% at 12 noon.
Woolworths will release its first quarter sales performance next week, with JP Morgan tipping first quarter sales for Woolworths to fall 0.3 per cent for the period.
It’s also tipped that sales at Big W have also softened.
Earlier today Coles reported its first quarter sales, which were up 1.3 per cent.
Banducci said that Woolworths was working hard to embed its position as Australia and New Zealand’s largest first party e-commerce retailer, it had also focused on growing third party marketplace presence through its Everyday Market platform, and more recently through the acquisition of MyDeal.
“The share of sales through marketplaces in Australia is well below other mature countries, and the addition of MyDeal to the group in September, expands our marketplace ambition, particularly in furniture, homewares and an extended range of everyday needs.”
He added “We unreservedly apologise for the considerable concern that this has caused our affected customers. Importantly, no payment, drivers’ licence or password details were accessed.