Big W's clothing category is emerging as the low-price retailer's most consistent performer, with strong summer sell-through, a successful winter range launch and improved on-shelf availability underpinning the chain's Q3 results.
This came as Big W sales lifted 3.9 per cent in the third quarter, hitting just over $1 billion, which includes the retailer’s marketplace arm.
In these numbers, Big W’s store-originated sales grew by just 2.4 per cent, hitting $920 million, with e-commerce sales surpassing $100 million in the third quarter, up by 17.9 per cent. Owned merchandise sales grew as well by 12.9 per cent to $99 million, with Big W Market sales up 79 per cent to $13 million.
By trading segment, Clothing continued to strengthen, benefitting from strong sell-through of summer styles, a successful launch of winter ranges and improved availability supported by RFID technology.
Big W also saw solid growth in its Play category, driven by toys, which offset the impact of cycling several strong product launches across Tech and Gaming in the prior year.
The retailer also noted that trading momentum in Home continued with a strong performance in expanded Openook own brand ranges; however, branded promotional lines were more subdued.
One of the more challenged categories is Everyday, with categories not benefitting from Easter seasonal trade below the prior year. According to Big W, plans are underway to improve performance including the Big Price Drops campaign launched in April.
Adjusted for Easter, total Q3 sales for Big W lifted 1.1 per cent, with comparable sales up just 0.7 per cent. Total dollars transacted under the Big W brand (total GTV sales) increased by 6.5 per cent or 3.8 per cent on an Easter-adjusted basis.
Summer seasonal clearance activity in the prior year led to comparable items decreasing by 2.2 per cent, however this was offset by an increase in average selling prices from a higher mix of full price sales.
All this buoyed the financial metrics of Big W’s parent company Woolworths Group, owner of the Woolworths supermarket chain which is its largest subsidiary.
Total group sales lifted 4.5 per cent to just over $18 billion.
Woolworths Group CEO Amanda Bardwell said that while sales are going strong in FY26, the conflict in the Middle East is bringing early signs of impact to the group’s customers and team, many of whom were already experiencing significant cost-of-living pressures.
“Our primary focus since March has been to take the necessary steps across the Group to minimise the impact on customers, while also recognising the genuine cost pressures being felt by our suppliers and transport partners,” Bardwell said. “The group has mobilised rapidly to respond to this environment and we are engaging regularly with Government as their response plans are developed.”
Fundamental to the group’s plans include a company-wide commitment to making every dollar count, Bardwell added. “This will enable us to continue to invest in lower prices, better experiences, and greater convenience for our customers which will deliver long-term value creation for shareholders.”
While Big W sales growth remains modest, the quality of sales is strong and, according to the Group, Big W remains on track to deliver positive EBIT and cash flow for FY26 in line with previous expectations.