AUSTRALIA'S largest grocery chain Woolworths has increased full-year sales by 4.2 per cent as its strategy of discounting and offering rewards pays dividends.
Sales rose to $51.69 billion for the 52 weeks to June 27, 2010, from $49.6 billion a year earlier, Sydney-based Woolworths said.
Australian food and liquor sales for the year were $34.68 billion, an increase of $1.7 billion, or 5.1 per cent, over the year before.
For the full year, petrol sales were $5.5 billion, in line with the year before.
Petrol comparable sales decreased by 1.7 per cent, even as comparable volumes increased 0.7 per cent over the year.
Chief executive Michael Luscombe said he was pleased with the sales increase across the group in what had been a challenging year for the retail sector.
"Our business-wide strategy to deliver optimum value for our customers has resulted in solid sales at a time when consumers are doing it tough and tightening the purse strings," he said.
Start of sidebar. Skip to end of sidebar. End of sidebar. Return to start of sidebar. "In particular, our supermarkets division has responded well to customer demand for value and has further enhanced its position in the market."
New Zealand supermarket sales for the year were $NZ5.2 billion ($4.1 billion), a 4.6 per cent increase over the year before with comparable sales for the year increasing by 4 per cent.
Big W sales were $4.2 billion, a decrease of 1.7 per cent over the previous year.
Comparable sales for the full year declined 3.2 per cent.
"This result primarily reflects the cycling of the prior year Government stimulus package with sales growth last year of 10.5 per cent, combined with price deflation in key categories including home entertainment, toys and sporting goods," Woolworths said.
Total consumer electronics sales grew by 3.4 per cent over the previous year.
Hotel sales of $1.1 billion for the year represent a decrease of 0.7 per cent with comparable sales declining three per cent.
This result was hit by the cycling of the government stimulus payments, tightened consumer spending and alterations to the regulatory environment, in particular, reduced trading hours in Queensland and changes to regulation in Victoria, the company said.
Shares in Woolworths declined 50 cents, or 1.87 per cent, to $26.18 by 10.34am (AEST).
GRB Price at posting:
7.0¢ Sentiment: None Disclosure: Held
