Countdown sales rise with looks to Christmas for profit

Friday 28 October 2016 12:46 PM

Countdown sales rise 1.9% in 1Q as Woolworths looks to Christmas for profit

By Sophie Boot

Oct. 28 (BusinessDesk) - Sales at Countdown supermarkets rose 1.9 percent in the first quarter of the 2017 financial year, which Australian parent Woolworths attributed to a focus on low prices.

New Zealand food sales in the 14 weeks to Oct. 2 were $1.59 billion, up from $1.56 billion in the same quarter of the 2016 financial year, Woolworths said in an update to the Australian stock exchange. In Australian dollars, sales gained 8.1 percent to A$1.5 billion, with the larger gain down to the stronger New Zealand dollar against the Australian dollar.

Comparable sales dipped 0.7 percent in the first quarter, with deflation at 0.5 percent, as the company "cycled the impact of last year's bulk gift card sales and successful dominoes promotional campaign," Woolworths' commentary to the results said, adding that its "focus on low prices continues to drive positive customer growth."

There are now 183 Countdown stores in New Zealand, with the company opening one and closing two in the quarter, while the number of franchise stores was unchanged at 64.

The ASX-listed parent reported a 1 percent gain in total first-quarter sales to A$15.3 billion, which includes its income from its Australian supermarkets, petrol sales, its Big W chain and hotels. The trading performance over Christmas will be crucial to Woolworths' 2017 financial performance, chief executive Brad Banducci said in his commentary.

The shares last traded at A$24.80 on the ASX, and have gained 1.2 percent this year.

(BusinessDesk)

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