Big W sales have fallen as several CE and appliance brands question whether to continue supplying the Woolworths owned retailer with consignment stock.

Total sales for the quarter declined by 4.9% with management claiming that the slump reflects increased consumer caution with downtrading most evident among budget customers.

Several brands as well as distributors, have expressed concern to ChannelNews about the high theft rate at Big W stores with some claiming that doing business with the big retailer on a consignment basis is “not feasible”.

Management claim that sales declines in April have been broadly in line with Q3 with a slow start to the 4th quarter Autumn/Winter trading.

One Melbourne based supplier said “With Big W, a brand is having to fund stock into the store, returns and now high theft rates. While there are some who are getting the volume to support consignment, the overall cost of doing business with them is not worth when you add up the real cost”.
Brad Banducci the CEO of Woolworths the owners of Big W said, “Consumer sentiment in Australia and New Zealand has been weak for some time”.

“However, since Christmas we have seen a noticeable change in consumer behaviour as customers have adjusted their budgets and spending following the holiday period which is consistent with Ipsos data which showed that the gap between cost-of-living concerns and other concerns continues to widen”.

He added “Customers are looking for more ways to save, are cross-shopping more, buying more own brand and buying more product on promotion”.