The Woolworths-owned discount retailer has reported a 3.9% lift in total sales to $1.032 billion in the third quarter, signalling a tentative recovery in its fiercely competitive battle against rival Kmart.

Big W’s result lifted the broader Living group — which includes Petstock — to $1.269 billion in quarterly sales, up 4.8%, with Petstock outpacing its stablemate with a standout 15.9% surge in sales.The numbers offer some relief for Woolworths executives who have faced mounting pressure as Kmart’s aggressive house brand strategy has eaten into Big W’s market share. But questions remain over the sustainability of the gains, with management conceding that core everyday categories continue to struggle.

Where the Growth Came From
Clothing emerged as a clear bright spot, buoyed by strong summer sell-through, the successful launch of winter ranges, and improved stock availability driven by RFID technology. The retailer’s expanded Openook own-brand homewares range also delivered solid momentum — a direct shot across the bow at Kmart’s private label playbook.

Play and Toys delivered solid growth, though the category faced headwinds from cycling tough comparatives after several strong Tech and Gaming product launches in late 2025.

Easter-adjusted comparable sales grew just 0.7% on the prior year — a modest figure that underscores the scale of the challenge still facing the business. Comparable item volumes actually fell 2.2%, with the sales increase driven largely by higher average selling prices from a greater mix of full-price sales — a dynamic that could prove fragile if consumer spending softens.

Digital Surge Provides Genuine Momentum
The retailer’s most compelling performance came online. eCommerce sales hit $112 million for the quarter, up 17.9%, while gross transaction value through the eCommerce channel surged 30.8% to $195 million. eCommerce GTV penetration reached 17.5% — up 3.4 percentage points year-on-year — signalling a genuine structural shift in how Australians are shopping Big W.

Average weekly traffic to the Big W website and app grew 11% in the quarter, suggesting the digital investment is beginning to convert browsers into buyers.

The Pressure Points
Management’s language around everyday categories was notably cautious. The company acknowledged that Everyday “remains challenging,” with those categories failing to benefit from Easter seasonal trade — a telling admission that the turnaround is uneven at best.

Branded promotional lines in Home also underperformed, described as “more subdued,” while the broader sales lift was partially engineered by pulling back on summer clearance discounting compared to the prior year — inflating the headline numbers but reducing volume.
In response, Big W has launched its Big Price Drops campaign, now rolling out nationally, in a bid to win back price-sensitive shoppers and drive foot traffic into stores.