BIG W Sales Surge By 27.8%, But Stock Running Low
BIG W has recorded significant growth since the COVID-19 pandemic, witnessing sales growth of 27.8% in Q4 FY20 to date (that is, over the 10 weeks to 14th June). This built upon a strong Q3 FY20, when total sales grew by 9.5%.
However, like many other retailers, BIG W’s supply chains have been disrupted by the COVID-19 crisis.
“BIG W reported very strong growth during the quarter across all major categories,” said Brad Banducci, CEO of Woolworths Group. “Inventory levels are now running below where we would like them, but the team is responding quickly to address the shortages.”
While Woolworths Group has witnessed sales growth across its entire portfolio, there has also been an increase costs associated with operating during the COVID-19 pandemic.
The group estimated that COVID-19-related operating costs (across all its retailers) in Q4 FY 2020 would amount to $220-275 million in late March, and has since said that incremental costs have been towards the higher end of this range. However, Woolworths Group expects these to begin to fall moving forward.
“As the operating environment continues to normalise, these higher operating costs, which primarily relate to store hygiene, social distancing and increased supply chain flexibility, are gradually and cautiously being wound back,” said Banducci.
Earlier this month BIG W launched its hugely popular annual Toy Mania event, starting with online only sales.