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Highlights
- Woolworths' e-commerce sales rise by 15.7% in Q1
- Big W forecasts a $70 million half-year loss
- Group sales up 3.2% year-on-year to $17.3 billion
Woolworths Group (ASX:WOW) has reported strong momentum in its e-commerce division, with online sales jumping 15.7% to reach $2.2 billion in the first quarter of the fiscal year. This robust digital growth helped lift total group sales by 3.2% year-on-year, amounting to $17.3 billion.
However, the group's overall performance was tempered by challenges at Big W, its discount department store division. Big W experienced softer trading conditions, prompting Woolworths to revise its profit expectations. The company now anticipates a half-year loss of $70 million for the segment, citing subdued consumer spending and a competitive retail environment.
Australian food sales remained a bright spot, rising 3.6% year-on-year, as the company continued to focus on strategic priorities laid out earlier in the year. Woolworths Group CEO Amanda Bardwell acknowledged the difficult operating environment but expressed confidence in the long-term strategy.
“While the market remains competitive and consumer outlook uncertain, we are making progress on our priorities set out in February and will provide a more detailed update at our full-year results in August,” Bardwell noted in the update.
The boost in digital sales is a testament to the growing importance of online platforms in the retail sector. This trend is particularly relevant as more investors look toward innovative business models and resilient revenue streams in today's evolving economic landscape.
Despite challenges in discretionary retail through Big W, Woolworths’ core supermarket business remains stable, supported by demand for essential goods and strong online integration. This aligns with the broader performance seen across many consumer staples firms on the ASX200, where consistency and scale continue to drive investor interest.
For market watchers exploring reliable dividend-paying names amid a mixed economic backdrop, established players in the consumer staples sector may provide valuable insights. Woolworths is often included in discussions around ASX dividend stocks due to its history of stable returns.
As the full-year results draw closer, all eyes will be on how Woolworths (WOW) balances its digital growth trajectory with performance recovery efforts at Big W, particularly in light of shifting consumer behaviors and persistent cost pressures.
