Woolworths’ online sales surge for grocery and retail shopping

One of the nation’s major supermarkets says online sales are still booming as it released its third-quarter results.

Woolworths has revealed e-commerce sales are still surging since the start of the pandemic, with more customers opting to shop online.

Releasing its third quarter sales results, the major retailer flagged shopping habits were beginning to normalise; however, more Australians were shopping online at Woolworths, BigW and its liquor stores.

Group sales rose 0.4 per cent on the corresponding period last year to $16.57bn, reflecting a softening in the panic buying that occurred in the third quarter last year due to COVID-19.

Woolworths chief executive Brad Banducci said third quarter results were a tale of two halves.

Woolworths CEO Brad Banducci said third quarter results were a tale of two halves. Picture: Supplied

“Despite the volatile trading over the quarter on a one-year basis, two-year average growth rates in Australian Food, Endeavour Drinks and BIG W remained above trend,” he said.

‘While food customers are still shopping less frequently, the growth in the number of items customers put in their baskets is slowing.

“Customers are also shopping more on weekends, state-based performance is becoming more balanced and there is less divergence in trading across the fleet other than in CBD and transit locations.”

The company’s online sales jumped 64.2 per cent over the period to $1.34bn.

Mr Banducci noted the switch to online was expected to continue to trend upwards, with the major retailer heavily investing in fulfilment centres to meet the growing demand.

Woolworths on Tuesday announced its plan to build a new customer fulfilment centre in Auburn, Sydney, that is set to be fully operational by 2024.

Woolworths says online sales are surging. Picture: Supplied.

The centre is expected to fulfil 50,000 orders a week.

“Customer digital engagement remains a priority,” Mr Banducci said.

“Average weekly traffic to Woolworths’ digital assets increased by 48 per cent to 12.4 million visits per week.”

Stores located in CBD locations and transport are still trading below normal levels as a result of the lower foot traffic. Metro store sales over the quarter declined 15 per cent.

Mr Banducci said the group was focusing on neighbourhood stores and hoped a return to normal shopping habits would assist the revival of inner urban shops.

BigW sales remained elevated despite three stores closing within its network.

Total sales in the group’s liquor business Endeavour Drinks jumped 6.3 per cent over the period, with new additions of gins and seltzers driving the rise in trading.