Woolworths Q3 Sales Climb 3.2% Led by eCommerce Surge Amid BIG W Challenges
Woolworths Group reported a 3.2% rise in total sales to $17.3 billion for Q3 FY2025, driven by strong growth in Australian Food, B2B, and New Zealand segments, alongside a 15.7% surge in eCommerce. However, BIG W’s sales decline and profit outlook challenges temper the overall performance.
- Total group sales up 3.2% to $17.3 billion in Q3 FY2025
- Australian Food sales increased 3.6%, with eCommerce growth of 16.3%
- Australian B2B sales rose 6.3%, driven by PFD and export meat growth
- New Zealand Food sales grew 4.8%, with eCommerce up 24.3%
- BIG W sales declined 1.5%, with profit outlook impacted by clothing markdowns and slower seasonal start
Solid Group Sales Growth Despite Market Headwinds
Woolworths Group Limited has released its third quarter sales results for the 13 weeks ended 6 April 2025, reporting a 3.2% increase in total group sales to $17.3 billion. This growth was underpinned by solid performances across Australian Food, Australian B2B, and New Zealand Food segments, alongside a robust surge in eCommerce sales.
Australian Food sales rose 3.6% to $13.05 billion, with Woolworths Food Retail and WooliesX eCommerce platforms driving the momentum. Notably, WooliesX sales jumped 15.0%, supported by a 16.3% increase in eCommerce sales, reflecting consumers’ growing preference for online convenience despite weather disruptions in Queensland and Northern NSW.
eCommerce and Digital Platforms Fuel Growth
The Group’s digital transformation continues to pay dividends. eCommerce sales across the Group grew 15.7% to $2.2 billion, with strong adoption of same-day and on-demand delivery services such as MILKRUN and Direct to Boot. Woolworths’ digital platforms attracted 28.2 million average weekly visits, boosted by app enhancements including voice search and recipe planning tools.
Everyday Rewards loyalty program remains a cornerstone of customer engagement, with active members increasing to 10.3 million in Australia and 2.1 million in New Zealand. The program’s integration with promotional campaigns like the Minecraft Cubeez collectibles has driven higher scan and tag rates, enhancing customer retention and spend.
Australian B2B and New Zealand Food Segments Show Strength
Australian B2B sales grew 6.3% to $1.44 billion, led by PFD’s double-digit growth in quick service restaurant customers and strong meat export volumes. The Group’s supply chain business also contributed to this uplift despite the downsizing of Australian Grocery Wholesalers following the loss of the Ampol contract.
New Zealand Food sales increased 4.8% to NZD 2.12 billion, with eCommerce sales surging 24.3%. The segment’s customer satisfaction metrics improved significantly, reflecting successful transformation initiatives and enhanced product availability. The ongoing rebranding and store conversions to FreshChoice are progressing, aiming for completion by calendar 2025.
BIG W Faces Headwinds Impacting Profit Outlook
W Living segment sales declined 2.7% to $1.22 billion, weighed down by a 1.5% drop in BIG W sales and the divestment of Petstock stores and veterinary clinics. BIG W’s Easter-adjusted sales showed modest growth, but clothing category challenges, stemming from delayed Spring/Summer stock and markdown investments, have pressured profitability. The Group now expects BIG W’s H2 loss before interest and tax to be approximately $70 million.
Despite these challenges, BIG W’s customer satisfaction scores improved, driven by better availability and delivery metrics. The segment’s eCommerce sales rose 4.3%, with digital traffic up 20%, supported by the Minecraft Cubeez campaign and Everyday Rewards participation.
Weather Disruptions and Community Support
Woolworths faced additional costs estimated between $20-25 million due to severe weather events in Queensland and Northern NSW. The Group responded with community support efforts including airlifting essential supplies to flood-isolated areas and donating groceries to evacuation centres. These efforts underscore Woolworths’ commitment to social responsibility amid operational challenges.
Looking ahead, Woolworths remains focused on improving retail fundamentals such as value, availability, and range, simplifying operations, and unlocking the Group’s full potential. A more detailed update is expected with the full year results in August.
Bottom Line?
Woolworths’ Q3 growth story is powered by eCommerce and core food segments, but BIG W’s challenges and weather costs signal caution ahead.
Questions in the middle?
- How will Woolworths address BIG W’s profitability challenges in the second half?
- What impact will ongoing weather disruptions have on supply chain costs and margins?
- Can Woolworths sustain its strong eCommerce growth amid intensifying competition?
