Big W’s Sales Up 31.8%, Driven By Home Office & Appliance Demand
Big W’s sales accelerated in Q4 FY20 under COVID-19 lockdowns, increasing by 31.8% year-on-year (y-o-y). Over the whole financial year, the retailer’s total sales rose by 10.5% to hit $4.1 billion.
“We are especially proud of the achievement of the Big W team which resulted in FY20 EBIT of $39 million. Big W had strong sales momentum prior to COVID but sales growth increased materially from March,” said Woolworths Group Chairman Gordon Cairns.
The Woolworths Group earnings report revealed that Big W witnessed particularly strong demand for home appliances, office equipment, heating, and cleaning, while toys and leisure also witnessed significant growth in Q4 from their annual toy sale event.
As for many retailers, online channels have become increasingly important for Big W during the COVID-19 crisis. Online sales grew by 180.9% to $92 million in Q4 FY20, accounting for 8.4% of total sales that quarter.
Over the whole of FY20 online sales increased by 67%.
These strong results have continued into FY21, with sales over the first 8 weeks of the financial year up 21.1%. “However, from 5 August, 22 stores in metro Melbourne have been closed to in-store customers. Since then, we have seen sales slow to mid-single digits,” said Brad Banducci, CEO of Woolworths Group.
“We also need to ensure that our shelves are full of the products that customers are looking for in the current environment. Inventory levels are below typical levels but we expect inventory to improve from mid-September.”