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Australian discount department store the Big W has announced a drop in sales - but apparel lines are flourishing.

The group, which is a division of Woolworths Ltd, sells a huge range of clothing and footwear for men, women and children, as well as household goods, toys and electronics.

Despite overall sales for Woolworths Limited being up by 4.9 per cent in its first quarter, sales at the Big W for the same period dropped by 2.7 per cent.

Quarterly sales were $1,066million in the last financial year, compared to $1,037million this year.

Comparable store sales for the quarter also decreased by 4.2 per cent.

Director of the Big W, Julie Coates, said customer transactions and unit sales were down 'slightly' and price deflation continued, averaging at 5 per cent during the quarter.

“Toys, footwear, home and menswear traded well in the first quarter,” Coates said.

“What is particularly pleasing is the performance of Emerson and Mambo in our apparel area.”

One new Big W store opened in the first quarter bringing the total to 166 and three more are set to open before Christmas 2011.

CEO of Woolworths, Grant O’Brien, said overall it was a solid start to the year considering retail conditions remain 'challenging'.

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