Woolworths posts 3.2pc lift in third quarter sales but Big W trading challenged

Woolworths has posted a modest improvement in group-wide sales for the third quarter, driven by the strength of its supermarkets division despite cost-of-living pressures that remained front of mind for shoppers.

But it revealed its long-struggling discount department store Big W is set to cop a $70 million loss in the second half.

Woolworths on Thursday said sales at its Australian grocery business lifted 3.6 per cent to $13.05 billion in the 13 weeks to the start of April, contributing a 3.2 per cent uplift in group sales to $17.3b.

Excluding fruit and vegetables and tobacco, average prices across its store network declined by 1.2 per cent. But higher meat prices offset falls in the cost of long life categories such as pantry, snacking, freezer and everyday needs.

Group e-commerce sales jumped 15.7 per cent to $2.2b.

“Cost of living remains a concern for customers, however customer scores were largely stable during the quarter and sales growth rates improved modestly across the group,” Woolworths chief executive Amanda Bardwell said.