A slow start to seasonal winter sales is affecting growth in Big W’s apparel category in the third quarter of FY23, despite overall sales growth of 5.7%.
The discount department store reported total sales in Q3 increased to over $1 billion, with a 4-year compound annual growth rate (CAGR) of 7.2%.
Homewares, leisure and toy sales recorded the strongest gains, offset by more subdued growth in apparel.
While eCommerce sales declined 1.9% to $91 million, store sales grew 6.5% to $955 million in the quarter.
This was driven by an increase in comparable transactions of 6.8% as customers returned to shopping in store more frequently. However, this was somewhat offset by a decline in items per basket.
Sales growth moderated through the quarter after cycling the COVID-driven impact in the prior year.
Woolworths Group CEO Brad Banducci said inflation in many areas remains "frustratingly elevated" with plans to provide customers with greater value in their shopping baskets.
This includes leveraging own and exclusive brands, its Price Dropped program and personalised Everyday Rewards member offers across its portfolio.
“Our current focus is on continuing to improve our customer experience, especially value for money and product availability, and we remain cautiously optimistic that Woolworths Group is well-placed to navigate and respond to the current trading challenges successfully for all key stakeholders – our customers, our team, our suppliers and community partners, and our shareholders.”
Big W has already leveraged sales across MyDeal, which was acquired by Woolworths last year.