Big W Sales Fall
Big W Sales have fallen 5.5% in the latest quarter according to Woolworths, on the bright side the big discount retailer reported a modest improvement in sales in the latter part of the quarter.
Revenues fell from $1.197 billion in the same quarter 2022 to $1,131 billion in Q1 2023, online sales fell 2.2%.
Items sales was down 7.6% on the prior year reflecting a more challenging trading environment with customers continuing to cut back on discretionary categories claims Big W management.
Recently some distributors pulled out of supplying Big W on consignment, citing the high cost of carrying stock and the rising theft rates across Big W stores.
Management claims customers continue to be cautious and are trading down, within categories, consumers are buying what Big W describes as opening price point products.
They claim that the Christmas trading period will determine the success of the business in this half with the business banking on Black Friday sales.
In stores recent technology investments, including Scan Assist and electronic shelf labels, are increasingly driving the Companies productivity agenda.
“Looking ahead, we have strong plans in place for the key Christmas and holiday trading period and while sales trends in October to date have remained broadly in line with the trend lines in Q1, the trading environment remains uncertain and value.
for money remains a key focus for our customers across all our businesses.
As theft rates rise and retailers report an increased level of conflict in stores Big W management claim that “Keeping our team safe” is a high priority.
Woolworths Group CEO, Brad Banducci, said: “Importantly for our customers, inflation in our Food businesses continued to moderate over the quarter driven by deflation in Fruit & Vegetables and Meat as lower input costs in these categories have led to lower retail prices”.