Woolworths Boosts Q1 Sales 2.7% with eCommerce and Customer Satisfaction Gains
Woolworths Group reported a 2.7% increase in first quarter sales to $18.5 billion, driven by robust growth in eCommerce and improved customer satisfaction metrics. The retailer remains cautiously optimistic as it prepares for the key festive trading period.
- Total group sales up 2.7% to $18.5 billion
- Australian Food sales rise 2.1%, Woolworths Food Retail up 3.8% excluding tobacco
- Group eCommerce sales grow 13.2%, with On Demand deliveries up 39%
- Australian B2B sales increase 6.2%, led by PFD and export meat growth
- BIG W sales up 1.0% with 46.3% surge in eCommerce gross transaction value
Solid Start to FY26 with Broad-Based Sales Growth
Woolworths Group kicked off the 2026 financial year with a 2.7% rise in total group sales, reaching $18.5 billion for the 14 weeks ended 5 October 2025. This growth was underpinned by gains across its Australian Food, Australian B2B, New Zealand Food, and W Living segments, reflecting a steady recovery in consumer demand and the effectiveness of ongoing strategic initiatives.
Australian Food sales increased by 2.1%, with Woolworths Food Retail stores and eCommerce channels contributing a 3.8% lift when excluding tobacco, which saw a sharp 51% decline. The retailer’s focus on value and convenience is evident in its expansion of the Lower Shelf Price program, now featuring over 750 products with strong unit growth, and a seventh consecutive quarter of average price declines (excluding tobacco).
eCommerce and Customer Experience Drive Momentum
eCommerce remains a standout performer, with group online sales surging 13.2%. Woolworths’ On Demand delivery service, which promises orders in under two hours, grew by an impressive 39%, highlighting shifting consumer preferences for convenience. The WooliesX platform, encompassing digital, media, and home delivery services, saw sales climb 11.3%, supported by enhancements to the Woolworths app and personalized offers through the Everyday Rewards program.
Customer satisfaction metrics also improved, with the Group’s Voice of Customer Net Promoter Score (VOC NPS) rising by three points year-on-year and four points compared to the previous quarter. This uplift was driven by better perceptions of value for money, availability, and store experience, although Woolworths acknowledges that budget-conscious shoppers remain an area for further engagement.
B2B and New Zealand Segments Show Strength
The Australian B2B segment grew 6.2%, buoyed by strong performance from PFD Food Services and a 31% jump in export meat sales, reflecting elevated international beef prices. Excluding the benefit of an additional week in the retail calendar, B2B sales still rose a healthy 2.2%. Meanwhile, New Zealand Food sales increased 3.2%, with eCommerce penetration reaching 16.8% and strong growth in fresh categories like fruit, vegetables, and meat. The ongoing rebranding of stores to Woolworths New Zealand and expansion of Mini Woolies locations underscore the group’s commitment to this market.
Mixed Results in W Living and BIG W
W Living sales rose 3.3%, driven largely by Petstock’s 15.8% growth through network expansion and wholesale revenue gains. BIG W reported a modest 1.0% sales increase, with clothing performing better thanks to improved availability and a strong start to the summer season. Notably, BIG W’s eCommerce gross transaction value jumped 46.3%, propelled by the BIG W Market platform’s 148% growth, reflecting the group’s digital marketplace strategy.
Looking ahead, Woolworths CEO Amanda Bardwell expressed cautious optimism for the upcoming key trading quarter and festive season. While acknowledging that the full benefits of strategic initiatives will take time to materialize, the group is focused on delivering enhanced value, convenience, and availability to customers, aiming to rebuild momentum and shareholder confidence.
Bottom Line?
Woolworths’ early sales momentum and customer gains set a positive tone, but the path to sustained growth hinges on executing its strategic plans amid evolving market dynamics.
Questions in the middle?
- How will the sharp decline in tobacco sales impact Woolworths’ overall margins and profitability?
- Can Woolworths sustain its strong eCommerce growth as competition intensifies and consumer habits evolve?
- What strategies will Woolworths deploy to better engage budget-conscious shoppers and improve underperforming categories like Pet and Baby?