Woolworths Group delivered strong quarterly sales growth of 4.5 percent, with group sales reaching AUD 18.1 billion in the 13 weeks ended 5 April 2026, though management’s outlook has darkened considerably due to emerging geopolitical and macroeconomic headwinds. The standout performer was eCommerce, which surged 20.2 percent to AUD 2.7 billion, continuing to capture an expanding share of the grocery wallet as customers embrace online convenience. Australian Food sales growth of 5.9 percent provided the primary engine for the group result, with Woolworths Food Retail climbing 7.3 percent excluding tobacco, underpinned by strong item growth and momentum that carried over from the previous quarter.
The eCommerce acceleration highlights Woolworths’ competitive positioning in digital retail, a segment where Australian grocery remains significantly underpenetrated compared to overseas markets. Beyond food, the group’s Media, Rewards and Services division grew 10.8 percent year-on-year, benefiting from enhanced loyalty campaigns and record active membership numbers. These results demonstrate the group’s multi-channel strategy is resonating with consumers despite cost-of-living pressures. Australian B2B sales also performed solidly with 4.9 percent growth, though strength in quick service restaurants could not offset moderation in traditional food service channels during March.
Performance outside Australia warrants closer scrutiny. New Zealand Food sales advanced only 1.4 percent, or 2.1 percent on an Easter-adjusted basis, reflecting a distinctly softer market backdrop and heightened competitive intensity. Management flagged a more subdued second-half outlook for the New Zealand division, suggesting momentum may struggle to build. Within the W Living segment, BIG W sales rose 3.9 percent, though the Easter-adjusted figure of 1.1 percent indicates meaningful seasonal uplift rather than underlying strength. That said, improved clothing performance and higher full-price sales suggest the turnaround at the department store remains on track.
Customer satisfaction metrics reveal a more complex picture. The group’s Voice of Customer Net Promoter Score increased three points compared to the prior year, reflecting gains in value perception and out-of-stock reduction. However, NPS declined relative to the second quarter, a deterioration that management attributed to seasonal trends, a sharp contraction in consumer confidence during Q3, and operational disruptions. Notably, average prices declined year-on-year despite building input cost pressures, a reflection of management’s commitment to value positioning in a weakening demand environment.
Chief Executive Amanda Bardwell’s commentary warrants close attention. While acknowledging limited impact to date, she cautioned that escalating Middle East tensions could amplify cost-of-living challenges through higher fuel costs and broader secondary inflationary effects. This cautionary tone contrasts with the quarter’s solid sales momentum and suggests management sees deteriorating conditions ahead. The ability to simultaneously drive volume growth and maintain price discipline will define the group’s resilience through the remainder of the financial year. Investors should monitor Q4 trading momentum, the trajectory of eCommerce penetration, and how management navigates cost inflation while protecting customer value. This announcement has been designated price sensitive and flagged as material by the ASX.
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About Woolworths Group Limited (ASX: WOW)
Woolworths Group is Australia’s largest supermarket operator and a major retailer, running Woolworths supermarkets, BIG W, and related businesses. It is a dominant player in Australian food and everyday needs retail.
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