By Keri Algar
SYDNEY, NSW: Total consumer electronics sales have grown by 3.4 per cent over the previous year for the Woolworths Group, according to the Q4 Sales Results released today.
The annual growth is largely bolstered by Woolworths’ TATA venture in India; with consumer electronics in Australia only registering a 1.4 per cent growth.
The results, which detail a 0.5 per cent drop for Dick Smith annual sales, reflect the cycling of the 2009 Government stimulus payment and a tightening of consumer spending in Australia.
The release said increased price competition has especially affected consumer electronics and resulted in lower nationwide margins.
While New Zealand experienced a dismal performance with a 12 per cent fall, Woolworths’ undertaking with TATA in India produced a $65 million increase in annual sales (35 per cent).
Woolworths Ltd CEO Michael Luscombe announced a 4.2 per cent increase in sales across the group, despite admittedly challenging times.
“Our businesswide strategy to deliver optimum value for our customers has resulted in solid sales at a time when consumers are doing it tough and tightening the purse strings,” said Luscombe in a statement to the ASX.