Australian low-price retailer Big W has reported a 5.5% decline in sales over the first quarter of FY24 to $1.13 billion.
Comparable item growth was down 7.6% on the prior year, with the retailer citing a more challenging trading environment as customers cut back on discretionary categories.
Big W dropped prices on more than 1700 products over the quarter, launched Member Prices for Everyday Rewards members in-store and online and a reduced lay-by service fees to combat the discretionary spend slip.
Woolworths Group CEO Brad Banducci said summer apparel sales are starting to improve in the lead up to Christmas.
“BIG W sales declined by 5.5% on the prior year with a modest improvement in trend in the latter part of the quarter.
“While customers continue to be cautious and are trading down within categories, we are seeing solid growth in summer clothing and in opening price point products that offer real value.
"While profit in the half to date has been impacted by the decline in sales and higher wage costs, the Christmas trading period will determine the success of the half.”
Everyday Rewards scan rates increased to 54.7% due to growth in active members and popularity in member pricing.
Big W’s network size was unchanged with 177 stores at the end of the quarter.