Woolworths still waiting for post-poll boost
Mr O'Brien said despite consumer confidence rising since the election, it should not be considered a "silver bullet" for the sector.
"We are pleased that the election is now out of the way and there is a ... higher level of certainty, and that can only help," he said.
"Because those levels of certainty cumulatively will improve customer confidence, and ultimately that's what we need, we have seen and we know very clearly that customers have money to spend and have been saving over the course of the past few years.
"The election is no silver bullet, though, for consumer confidence, and we will be watching it closely as we move closer to Christmas."
Woolworths, which owns a portfolio of retail banners including its flagship supermarkets chain, a convenience store and petrol business, Big W, Dan Murphy's, Masters Hardware and a hotels business, on Thursday said it sold more than $15.68 billion worth of goods during the three months to October 6, up 3 per cent on the same time last year. Sales were up 6.4 per cent at $13.8 billion across the company's key profit engine, the supermarkets and petrol outlets.
Mr O'Brien mirrored comments by other retailers in saying he hadn't seen any great increase in spending patterns since the change in government.
"We are buoyed by the fact the election is out of the way and we are seeing employment levels hold, interest rates continue to be low and housing looks like going in the right direction," he said.
Woolworths said its Australian food and liquor division, which has been locked in a competitive battle with Coles for the past six years, posted a 4.5 per cent lift in sales for the first quarter to $10.6 billion. Like-for-like sales, which strip out the effects of new store openings, were up 2.5 per cent for the period.
Its merchandise and apparel group Big W suffered a 3.6 per cent fall in quarterly sales to $1.06 billion, with the decline mainly driven by the timing of the annual toy sale and deflation across the home entertainment category.
Mr O'Brien said removing the impact of the toy sale, sales at Big W would have been positive. Its burgeoning Masters chain lifted quarterly sales by 52.9 per cent to $182 million.
Online sales from across Woolworths retail stores rose 37 per cent in the quarter and Mr O'Brien said the company was on track to post more than $1 billion in sales from the web this financial year.
Shares in Woolworths rose 5¢ to $34.90.
Frequently Asked Questions about this Article…
Woolworths reported a 3% increase in sales to $15.68 billion for the three months leading up to October 6, compared to the same period last year. However, they have not seen a significant boost in spending since the election.
Woolworths reported a 3% increase in sales to $15.68 billion for the three months leading up to October 6, compared to the same period last year. However, they have not seen a significant boost in spending since the election.
Woolworths' boss, Grant O'Brien, mentioned that while consumer confidence has risen since the election, it should not be seen as a 'silver bullet' for the sector. The election has brought a higher level of certainty, which is expected to gradually improve consumer confidence.
Woolworths' CEO, Grant O'Brien, mentioned that while consumer confidence has risen since the election, it should not be seen as a 'silver bullet' for the retail sector. The election has brought a higher level of certainty, which is expected to gradually improve consumer confidence.
Woolworths is optimistic that the end of the election campaign will lead to higher consumer confidence and spending, especially as they approach the Christmas season. However, they are cautious and will be monitoring spending patterns closely.
Key factors affecting Woolworths' sales growth include stable employment levels, low interest rates, and positive trends in the housing market. These factors contribute to consumer confidence and spending.
Woolworths' Australian food and liquor division saw a 4.5% increase in sales to $10.6 billion. Big W experienced a 3.6% decline in sales, mainly due to the timing of the annual toy sale and deflation in home entertainment. The Masters chain saw a significant 52.9% increase in sales.
Woolworths' Australian food and liquor division saw a 4.5% increase in sales to $10.6 billion. However, Big W experienced a 3.6% decline in sales, mainly due to the timing of the annual toy sale and deflation in the home entertainment category.
Woolworths' online sales rose by 37% in the quarter, and the company is on track to achieve over $1 billion in online sales for the financial year.
Woolworths' online sales rose by 37% in the quarter, and the company is on track to achieve over $1 billion in online sales this financial year, indicating a strong growth trajectory in their e-commerce segment.
Following the sales report, shares in Woolworths rose by 5 cents to $34.90.
Woolworths' Masters chain experienced a significant 52.9% increase in quarterly sales, reaching $182 million, showcasing strong growth in this division.
Big W faced a 3.6% decline in sales, attributed to the timing of the annual toy sale and deflation in the home entertainment category. However, excluding the impact of the toy sale, sales would have been positive.
Big W faced a 3.6% decline in quarterly sales, primarily due to the timing of the annual toy sale and deflation in the home entertainment category. However, sales would have been positive if the impact of the toy sale was removed.
Key factors include the end of the federal election campaign, stable employment levels, low interest rates, and positive trends in the housing market, all of which contribute to a more favorable business environment for Woolworths.
Woolworths is focusing on leveraging the increased consumer confidence brought by the election's conclusion, along with stable employment, low interest rates, and positive housing trends, to encourage consumer spending as they approach the holiday season.
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