Comparable dollar sales decreased 2.3 per cent for the year and decreased 2.4 per cent for the fourth quarter after adjusting. Comparable volumes decreased 2.9 per cent for the year and decreased 0.5 per cent for the fourth quarter after adjusting.Total merchandise (non-fuel) sales increased 8.3 per cent for the year (6.4 per cent adjusted) and increased 14.5 per cent for the fourth quarter (7.6 per cent adjusted).
Comparable merchandise (non-fuel) sales increased 2.4 per cent for the year and increased 4.7 per cent for the fourth quarter after adjusting.
Woolworths opened 16 petrol canopies during the year and closed one Woolworths and one Woolworths/Caltex alliance site bringing the total to 613, including 131 Woolworths/Caltex alliance sites.
Big W
BIG W sales for the year were $4.4 billion, an increase of 4.9 per cent on the previous year (2.0 per cent adjusted).
Sales for the fourth quarter were $973 million, an increase of 9.7 per cent on the previous year. Adjusting for the impact of the 53rd week, which included the launch of our annual Toy Sale event, and for the timing of Easter, sales for the fourth quarter were down 2.2 per cent.
Fourth quarter comparable sales were impacted by unseasonably warm weather which softened sales of winter apparel relative to expectations, ongoing price deflation (Q4’13: 3.1 per cent; FY13: 4.2 per cent) and strong comparable sales growth in May and June in the previous year, which was supported by government stimulus programs. Woolworths said Home Entertainment, particularly iPads, which benefited from the government stimulus programs last year, declined in the fourth quarter.
According to Woolworths the Home Entertainment category was impacted not only by prior year stimulus programs but also 11.8 per cent deflation for the year. Excluding Home Entertainment sales, comparable sales growth for the year was positive, which Woolworths said was driven by strong sales in the Home, Leisure, Toys and Sporting and Apparel categories.
“We are pleased with the result BIG W has achieved for the year against the backdrop of subdued trading conditions and continued price deflation as we have reinvigorated our product, price and promotional offers,” said Julie Coates, Director of BIG W. “Our brand campaign ‘Everyone’s a Winner with Australia’s Lowest Prices – Cha-Ching!’ and the introduction of our BIG W brand ambassador, Eric Stonestreet, during the fourth quarter have resonated well with customers.”
Hotels
Hotel sales for the year were $1.5 billion, an increase of 22 per cent on the previous year or 19.7 per cent adjusted. Sales for the fourth quarter were $357 million, an increase of 30.8 per cent on the previous year or 19.6 per cent adjusted.
Comparable sales for the year increased 10.5 per cent and increased 11.9 per cent for the fourth quarter after adjusting for Easter.
Woolworths said growth was driven by hotel acquisitions during the first half of the financial year and the Victorian gaming regulatory changes, which came into effect in August 2012.
“This is a pleasing result and reflects our focus on developing the ‘family friendly’ features of our venues including an improved Food offer in terms of quality and value,” said Bruce Mathieson Jnr, Chief Executive Officer ALH Group. “The year has not been without its challenges with subdued bar sales across most States and the impact of the removal of ATMs from venues in Victoria as a result of the gaming regulatory changes.”
Home Improvement
Home Improvement sales for the year were $1.2 billion, an increase of 49.6 per cent on the previous year (46.7 per cent adjusted). This included Danks sales of $710 million, up 4.1 per cent on the previous year and Masters sales of $529 million, up 262 per cent on the previous year on a 53 week basis.
Sales for the fourth quarter were $312 million, an increase of 52.2 per cent on the previous year or 40.5 per cent adjusted.
Woolworths said the 15 Masters stores opened for more than 12 months are in line with its business case sales target.
According to Woolworths, Danks’ high reliance on the trade and building sectors and the softness of the segment has affected delivery of sales relative to its expectations in FY13. Budgeted sales levels were higher than those achieved during FY13. This reflects the softness in the market and lower levels of acquisition activity than expected, according to the Company.
“Masters opened a further 16 stores across the country in FY13, giving us 31 stores trading at the end of the financial year,” said Melinda Smith, Director of Masters. “Store roll outs are critical to our success and have been delivered on schedule with a further 18 stores planned for FY14,” she said.
Woolworths said customer response to its differentiated product range and pricing strategy had been positive, and that Whitegoods, Kitchens and Paint categories had performed particularly well.
