While it may appear nothing but doom and gloom in the retail sector, Woolworths has posted slightly positive sale results.
The company’s full year sale were $54.1 billion, a 4.7 per cent increase on the previous year from $51.7 billion if petrol was excluded.
Woolworths CEO Michael Luscombe said the results are pleasing given the difficult conditions.
"This result has been achieved in a very challenging year for retail which saw continuing deflationary effects, the disruption caused by natural disasters, increased consumer caution and higher domestic savings rates,” he said.
Its key Australian food and liquor division saw total sales increase by 4.3 per cent from $35.1 billion to $36.2 billion. Meanwhile, comparable sales in Woolworths supermarket increased by 3 per cent.
The company highlighted that will trading continues to be impacted by tighter consumer spending, the results of its supermarkets reflect the increased market share, customer numbers, basket size and items sold in the year.
Positive results were also reported for its Dick Smith stores where total sales increased 1.4 per cent to 2.1 per cent year-on-year to $1.3 billion.
However, its BIG W division saw a 0.8 per cent decrease in its total sales for the full year over the previous year down to $4.2 billion where it continues to be affected by deflation as a result of the stronger Australian dollar forcing cost price reductions to be passed on to customers.