Big W sold more clothing items in the first quarter, even as the discount department store’s total sales fell 0.9 per cent to $1.127 billion.
Woolworths Group’s latest trading update showed that item volumes grew year on year in clothing, home and play. The group attributed this to an improved customer offer. It reported that clothing performance remained solid and that the seasonal transition of stock and winter clearance were well managed, although spring/summer got off to a slower start than last year. The group did not disclose sales figures for the clothing category.
“In W Living, Big W sales declined 0.9 per cent in a deteriorating discretionary retail environment,” Woolworths Group CEO Amanda Bardwell said. “Three of the four businesses grew items in the quarter, but Everyday remains challenged.”
Own brand sales grew 7.2 per cent in the quarter, which the group linked to the range’s value proposition and improvements to range. Brand value perception rose three points on the prior year. Woolworths Group credited this to lower prices through its Big Price Drops campaign and expanded own-brand ranges.
That push on price weighed on the top line. Comparable sales fell 1.3 per cent, compared with 0.6 per cent growth a year earlier. Woolworths Group put the decline down to fewer items per basket and lower average selling prices, which reflected its investment in value and higher own brand penetration.
Comparable transactions were flat and comparable items per basket fell 0.6 per cent. The group reported that growth in August and September was softer, as these are lower-sales trans-seasonal months.
Sales through Big W’s physical network also slipped. Store-originated sales fell 1.9 per cent to $996 million, while eCommerce sales rose 7.3 per cent to $131 million. eCommerce gross transaction value (GTV) grew 7.7 per cent, lifting online GTV penetration 1.5 points to 18.8 per cent.
Total GTV under the Big W brand, including its Big W Market marketplace, fell 0.2 per cent to $1.226 billion.
Big W’s same-day delivery offer has continued to grow since it launched in partnership with DoorDash in May. The retailer has since launched on the DoorDash platform, with 35,000 items available from 156 stores.
Sales in the Everyday category continued to decline while the business reset is underway.
“In New Zealand Food and Big W, our focus remains on building sales momentum,” Bardwell said.