Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Woolworths NZ lifts first-half sales 2.3 percent

Woolworths NZ lifts first-half sales 2.3 percent

Jan. 31 (BusinessDesk) - Australian supermarket chain Woolworths, which accounts for about 40 percent of New Zealand's supermarket sales, increased first-half revenue 2.3 percent on this side of the Tasman, even as trading conditions remain tough and consumer price growth non-existent.

The group's New Zealand supermarkets increased sales to $2.94 billion in the 27 weeks ended Dec. 30 from $2.88 billion a year earlier, the ASX-listed company said in a statement. Total group sales rose 3.2 percent to A$30.68 billion, including a A$642 million contribution from its Dick Smith Electronics stores, which it sold in the period.

"In a market characterised by low growth and even lower inflation, retail trading conditions have become increasingly challenging," said David Chambers, managing director of local supermarket unit Progressive Enterprises. "Our strong brand, new store formats and continually improving offers have enabled us to continue to increase our market share throughout the half."

Woolworths New Zealand, the local holding company, boosted annual profit 29 percent to $128.9 million in the 2012 financial year on a 3.5 percent increase in sales, according to documents lodged with the Companies Office.

Those earnings gains have come in a period when inflation is easing, and government figures this month showed the consumers' price index fell 0.2 percent in the December quarter.

The Countdown Supermarkets food price index showed inflation of just 0.1 percent in the six-month period, with second-quarter deflation in dairy products.

Woolworths said it passed on lower costs of milk, butter and cheese to its customers, and held more frequent promotions.

Shares in the Australian group fell 1 percent to A$31.35 on the ASX today.

(BusinessDesk

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news