Woolworths sales boom down to Ooshies and COVID-19 pandemic, retail giant says

Retail giant Woolworths says its sales surge is partly due to the colourful figurines that become a hot collector’s item.

Retailing giant Woolworths has experienced a sales surge. Picture: supplied

Retail giant Woolworths says its popular Ooshies promotion has bolstered a sales surge prompted by the stay-at-home culture sparked by COVID-19.

In a first quarter sales update lodged to the Australian Stock Exchange on Wednesday, Woolworths said a switch to eating at home and online shopping fuelled a 12.3 per cent rise in total sales compared to the prior corresponding period.

The food and retail behemoth booked a total group sales figure of $17.9 billion across its supermarket and leisure brands for the first three months of financial year 2021.

Woolworths chief executive Brad Banducci noted the growing cult-like popularity of its Ooshies promotion helped push sales up over the quarter.

The colourful figurines have become a collector’s item and also featured in a viral breakfast TV segment in which a farmer beheaded a rare furry Ooshie in a protest against online abuse.

The bumper increase is predominantly off the back of strong turnover in both supermarket and department store retailing, with both major categories witnessing soaring growth in e-commerce channels.

“Australian Food total sales increased by 12.9 per cent in Q1 as customers consumed more at home, demand for e-commerce services showed no sign of slowing and the team delivered a successful Disney+ Ooshies program,” Mr Banducci said.

A rare furry Simba Ooshie (pictured) was beheaded on breakfast TV as a protest against online abuse. Woolies says the popular promotion has bolstered a sales surge. Image: Supplied.

Mr Banducci said the company is turning its attention to preparing for a COVID-19 safe Christmas retailing period, and is expecting sales in food categories to remain elevated over the period.

“For the rest of the calendar year, we expect elevated sales and costs to continue as customers spend more time at home, continue to embrace e-commerce and we ensure our stores and distribution centres remain COVIDSafe,” Mr Banducci said.

For the 14 week period ending October 4, Woolworths Supermarket sales rose 13.4 per cent, with digital supermarket channel usage increasing 100 per cent.

The group’s total Australian food sales grew 12.9 per cent. Total group digital sales rose 86.7 per cent.

Big W sales grew 20.4 per cent over the period despite 22 stores being forced to close in Victoria due to stage four restrictions. Big W digital sales grew 175.2 per cent and is now representing 9.3 per cent of the department stores total sales.

Comparable sales growth in its liquor business grew 20 per cent, while its New Zealand supermarket operations experienced a 4.7 per cent rise.