Profit continues to struggle.
Big W has reported sales growth of 5.6% for Q3 FY19 with Easter-adjusted comparable sales increasing 7.4%, driven by strong transaction growth and items per basket driving double-digit comparable item growth.
Everyday, Leisure and Home were the best performing categories with apparel sales improving over the quarter. Online sales increased by 167% with pick up remaining the strongest contributor to growth. Online penetration more than doubled compared to the prior year and now represents 4.1% of total sales.
During the quarter, one Big W store was opened and one store was closed.
Despite the strong sales growth, profit improvement is slower than planned due to a slower recovery of higher margin categories and stock loss challenges. Big W is expected to report a loss before interest and tax of $80 million to $100 million in FY19.
Woolworths Group CEO, Brad Banducci said, “Big W sales growth has been strong…the challenge remains converting strong sales growth into improved profit.”