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E-commerce

Woolworths’ e-commerce division sees significant sales growth

Woolworths’ digital media, Everyday Rewards system, and e-commerce arm, WooliesX, saw a significant growth of 16 per cent in sales to $9.6 billion in the last fiancial year.

WooliesX’s e-commerce segment, EComX, reported a 17.4 per cent increase in sales to $7.3 billion, driven by its same-day and on-demand offerings, with its Milkrun service expanding to 515 stores in the last fiscal year.

In digital and media, weekly average traffic to group digital platforms reached 29.2 million in the last quarter of the financial year, with Woolworths app users increasing by 14.8 per cent.

Big W discount department store business, a part of Woolworth’s W Living arm, reported its e-commerce sales at $489 million, while seeing a decline in sales of 0.8 per cent to $4.46 billion.

In June, Woolworths announced the closure of its MyDeal marketplace to instead focus on its retailer-led marketplaces, including Big W Market and Everyday Market, resulting in a non-cash impairment of $45 million.

Group results

Woolworths has reported a 3.6 per cent rise in its group sales to $69 billion for the current financial year despite major disruptions during the first half.

The group’s net profit after tax dropped 17.1 per cent to $1.3 billion year-on-year, reflecting increased financial costs and a lower EBITDA, which fell 3.5 per cent to $5.7 billion. Gross margin declined slightly from 27.3 per cent to 27.2 per cent.

The group’s Australian food arm sales rose 3.1 per cent to $51.4 billion, its gross margin flat at 28.6 per cent, while its EBITDA fell 3.9 per cent to $4.7 billion. The segment’s growth was attributed to health and wellness, drinks, and frozen food sales, with its own-brand sales growing 5 per cent, outperforming branded sales growth.

The company’s Everyday Rewards and services sales increased by a normalised 9.8 per cent, with active members reaching 10.4 million, including 500,000 new members joining over the year.

The Everyday Rewards program added Petstock, Chargefox, and Westpac as rewards partners.

Woolworths’ B2B sales grew 4.1 per cent to 5.7 per cent, with its EBIT increasing 15.8 per cent to $137 million, driven by improved utilisation of cross-dock warehouses and double-digit growth from PFD Foods.

“In F26 we expect to return to profit growth following a disappointing F25,” said Woolworths group CEO Amanda Bardwell.

“We will continue to rebuild customer trust through compelling value and retail execution excellence, simplify the way we work, and become a more focused, lower-cost retailer with a differentiated food offer at our core.”

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