Woolworths extends lead over Coles as food sales surge

WOOLWORTHS has logged another positive sales report, again beating key rival Coles as the grocery giants prepare for the critical Christmas trading period.

Woolworths chief Brad Banducci.

WOOLWORTHS has logged another positive sales report, again beating key rival Coles as the supermarket heavyweights prepare for the critical Christmas trading period.

Australian food sales at Woolworths supermarkets rose 4.7 per cent to $9.6 billion for the 14 weeks to October 1, the group said this morning.

The more closely watched like-for-like sales, which strip out the impact of stores opening and closing, rose 4.9 per cent.

Coles last week reported like-for-like food sales growth of 0.3 per cent for the quarter — the lowest rate of growth since Wesfarmers bought the business a decade ago.

Woolworths chief Brad Banducci said the supermarket had continued the good sales momentum from the second half of the 2017 financial year.

“We are focused on working together to create better customer and team experiences across the Group,” he said.

“We are also conscious of the changing needs of our customers who are looking for increasing levels of convenience and we are working hard to meet this need, with pick up one of the many initiatives we have underway.

“While we are pleased with the progress during the quarter, there remains much more to do with our focus now firmly on the important Christmas trading period.”

Woolworths has spent more than $1 billion over the past two years lowering prices, updating stores and investing in service in order to regain its momentum against Coles and newer rivals Aldi and Costco.