Big W Posts Record Sales As Woolworths Surges
Big W has enjoyed a solid financial year, with record annual sales as well as 344.9 per cent growth in EBIT making it a strong performer for owner Woolworths.
The retailer grew sales 11.6 per cent to a new high of $4.58 billion, with strong annual growth across all major categories. Gross margin was up 180bps to 33.6 per cent, with sales per square metre rising 14 per cent to $4517; sales dipped 10.4 per cent in the fourth quarter, however, as the new lockdowns hit in Sydney and Melbourne. Customer metrics were also up, with store-controllable VOC increasing to 83 per cent.
Big W also continued its digital transformation, as eCommerce sales grew 4.6 per cent and penetration reached a record 9.9 per cent; this is up from 8.4 per cent in the previous year. The retailer expanded its data capabilities through the establishment of its Data, Analytics and Insights team, as well as implementing direct-to-boot locations; ten online hub stores for home delivery; and contactless pickup in all stores, as well as a new website and enhanced eLayby.
According to Woolworths CEO Brad Banducci, Big W has achieved big success during the year.
“Big W had another fantastic year with improved customer scores and strong sales and EBIT growth. After sales growth of 20.1 per cent in H1, growth moderated in H2 but remained positive at 2.3 per cent, despite the negative impact of lockdowns in the half. EBIT increased by over 300 per cent in the year to $172 million,” he said.
Moving into FY22, Woolworths says Big W plans to unlock “best-in-class availability” with the right product in the right place at the right time; enhancing the digital experience for customers; and staking out a leadership position in value and destinations.
Woolworths Group’s overall sales climbed 5.7 per cent to $67.28 billion, with group NPAT up 22.9 per cent to $1.97 billion; eCommerce sales were up 58.1 per cent to $5.6 billion.
The supermarket and retail giant today announced a $2 billion off-market share buyback.