Woolworths has enjoyed a three per cent sales increase despite subdued retail conditions, with its supermarkets, petrol stations and hardware stores posting gains.
Its troubled home improvement division also showed promise but discount chain Big W suffered a sales drop.
The retail giant sold more than $15.68 billion worth of goods in the three months to October 6, an increase of three per cent compared with the same period in 2012.
Woolworths chief executive Grant O’Brien said the group’s supermarkets, liquor and hardware stores, petrol stations and hotels enjoyed gains despite consumer caution.
“As anticipated, retail trading conditions remained subdued with ongoing consumer caution reflecting cost of living pressures, higher unemployment and uncertainty prior to the federal election,” he said in a statement on Thursday.
Woolworths’ Australian and New Zealand supermarkets and petrol outlets collectively sold more than $13.8 billion worth of goods during the quarter, marking a 6.4 per cent improvement.
Big W, however, was the only division to suffer a decline, with discount store sales slipping by 3.6 per cent.
Woolworths blamed price deflation and the timing of the annual toy sale.
The group’s petrol division posted a quarterly sales lift of 12.6 per cent.
Stay informed, daily
Meanwhile, home improvement division sales increased by 28.2 per cent, after a troubled year.
“With a good start to the spring season, we remain confident that we are building a sustainable future for Masters to become a long-term profit contributor for the group,” O’Brien said.
The $391 million first-quarter sales tally for Masters and Danks hardware stores comes only three months after Woolworths announced a $139 million full-year loss for the home improvement division.
During the first quarter of fiscal 2014, Woolworths acquired online women’s apparel and homewares retailer EziBuy.
