Woolworths NZ Sales Growth Rebounds After Lagging Inflation
Woolworths Group's New Zealand sales growth has rebounded in the first eight weeks of the new trading period, following a year where it trailed inflation. According to the company's annual results, NZ sales rose by 2.5% last financial year, falling behind the Stats NZ official inflation rate of 4.1%. However, from June 29, local sales increased by 4.2%, suggesting that Woolworths has regained momentum in the market.
The company attributes the slower growth to a 'flight to value' among Kiwi consumers in what was described as 'a highly competitive' market. The full-year sales rose to $8.49 billion, up from $8.28 billion, with earnings before interest and tax (EBIT) increasing by 8.8% from $150 million in FY25 to $163 million.
Woolworths Group CEO Amanda Bardwell said the New Zealand business faced a challenging second half of the year, but is now seeing signs of improvement due to internal efficiencies and cost discipline.