Big W Soars As Sales Pass $2.5 Billion
Big W has surged in the six months to January 2021, with EBIT more than doubling year-on-year.
The retailer pulled in $2.58 billion in sales over the half, up 20.1 per cent, while EBIT skyrocketed 165.7 per cent to $133 million. Sales for the Big W X e-commerce division were also up 120 per cent in the half.
Brad Banducci, CEO of Woolworths Group, praised the second half of 2020 as “very strong” for Big W, with all key metrics including customer metrics improving.
“Sales increased in all destination areas and were buoyed by seasonal sales events such as Halloween, Click Frenzy, Big Sale (Black Friday) and Christmas.
“eCommerce sales through Big W X increased by 120%, with penetration in H1 of 9.5%. EBIT growth was driven by strong sales, gross margin improvements and good cost control despite higher COVID-related costs,” he said.
The store network stayed at 179 outlets over the half, though three stores were closed in January; Woolworths will also proceed with plans to close its Monarto distribution centre as it transitions to a third-party distribution network including new sites in Kewdale, WA, and Hopper’s Crossing, Victoria.
Woolworths Group overall pulled in $35.8 billion in sales during the half, with an EBIT of $2.1 billion. According to Banducci, the pandemic remained an important factor in trading.
“The first half of F21 continued to be impacted by COVID, with elevated sales and higher costs as we worked to maintain a COVIDSafe environment for our customers and team.
“While we have all been living in this uncertain environment now for 12 months, ongoing localised outbreaks remind us that we need to remain both vigilant and agile,” he said.