Metro Food Stores sales increased 27.9 per cent to $309 million in Q3 2023, while Woolworths’ total sales increased 8 per cent on the prior year.
The increase in Metro Food Stores (store-originated) growth was strong as customers shopped more in-store after Covid-impacted sales in the previous period, particularly in on-the-go stores.
Brad Banducci, CEO of Woolworths Group, said availability scores in their food businesses are improving as supply chains slowly recover, but customers are concerned about the impact of ongoing inflation on household budgets.
“In general, customer spending is stable. However, value-conscious customers are becoming more thoughtful about their discretionary spend, trading into more affordable options such as our own brands and looking for additional ways to save in store or through our Digital, Rewards and eCommerce platforms.”
Woolworths own and exclusive brand sales grew 9.1 per cent as customers turned to cheaper, house-brand alternatives in response to the rising cost of living, with strong growth in pantry and chilled dairy which both grew over 20 per cent.
“Our current focus is on continuing to improve our customer experience, especially value for money and product availability, and we remain cautiously optimistic that Woolworths Group is well placed to navigate and respond to the current trading challenges successfully for all key stakeholders – our customers, our team, our suppliers and community partners, and our shareholders,” said Banducci.
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