Big W Sales Up 20% In Q1, Leisure Goods Soar
Woolworths-owned discount department store, Big W, has reported a notable 20.4% increase in total sales to $1.15 billion for the fourteen weeks to October 4 (Q1).
The company reported comparable sales growth of 22.3% (28.5% excluding the 22 stores in Melbourne during the quarter amid lockdown conditions).
Sales growth was lead by the Leisure and Toys categories during the quarter, however, the retailer states strong sales growth occurred every month across all major categories.
Comparable sales growth has continued to be driven by an increase in items per basket, with comparable transactions impacted by Melbourne closures.
The retailer also officially launched its digitally-savvy arm BIG WX in the quarter, with temporarily closed Melbourne stores fulfilling increased demand for home deliveries.
The stores reopened on October 28.
The investment prompt a 175% jump in Q1 eCommerce sales, with record eCommerce penetration of 9.3% of sales.
The news contrasts the prior performance of rival department store, Target, who recently reported a 2.6% slip in full-year total sales.
As Wesfarmers-owned Kmart focused on growth investments, the conglomerate has advised it does not expect Target to be profitable in FY21.
It comes as Target significantly dwindles down its store network to facilitate a more lean operation.
Wesfarmers has continued its conversion of many Target sites into Kmart or smaller K Hub stores.
“Christmas is only 50 days away and it will be very different to previous years, however, we have worked hard as a team to ensure that all Woolworths Group businesses provide our customers with the opportunity to celebrate the spirit of Christmas in an enjoyable, affordable and COVIDSafe way,” says Woolworths Group CEO, Brad Banducci.