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Big W Sales Up 15%, CEO Warns Of Cost Pressures

Big W saw its sales jump 15.3 per cent during the last six months of 2022 as customers return to value shopping and cut discretionary spending.

Sales amounted to $2.7 billion, a jump of 8 per cent over a three-year period. September quarter sales jumped 30.1 per cent compared to the same period in 2021, when stores were shut.

The December quarter saw Big W cycling a period of normal trading, delivering a 5.8 per cent sales leap, “buoyed by a strong performance in seasonal events including Halloween, Black Friday and Christmas,” according to the company.

Instore sales for the half were up 25.4 per cent, while online sales through its Big W X eCommerce channel fell by 31.4 per cent, driven mainly by a 51.8 per cent fall in the September half, again, due to cycling a period where stores were closed.

Big W notes online sales have jumped 36.6 per cent over the past three years.

EBIT increased by an impressive 437.5 per cent to $134 million, up 3.9 per cent from the same period in 2019.

BIG W sales growth for the first seven weeks of 2023 was strong at 9.7 per cent, but Woolworths CEO Brad Banducci is measured when looking forward.

“We remain cautious about the impact of cost-of-living pressures on discretionary retail spend in Australia but believe that BIG W’s range and value proposition positions it well in the current environment.

“As a reminder, EBIT in H2 is typically much lower than H1, with H1 EBIT expected to be approximately 75-80 per cent of total F23 EBIT.”

Overall, Woolworths Group posted a 14 per cent leap in net profit to $907 million, driven largely by supermarket inflation.

Reported profits were 88 per cent lower, although this was stacked against a prior year which included profits from the sale of Endeavour Group.

Group revenue rose 4 per cent to $33.2 billion.



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