Big W records $85m loss

During FY19.

Big W has suffered a loss of $85 million for the year ended 30 June, 2019. This was an improvement from a loss of $110 million in FY18.

Sales increased 6.5% to $3.56 billion (or 4.2% on a normalised basis) for the year ended 30 June, 2019. Comparable sales were up 5.3% with growth across all categories. Normalised online sales increased by 128% in FY19 with pick-up consistently delivering strong sales growth.

Parent company, Woolworths Group, has attributed the sales momentum to an increase in customer transactions and increased items in their baskets.

In FY20, Big W will focus on creating a sustainable business that is simpler to operate, and continue providing customers with low prices and more convenient, connected solutions in-store and online.

Woolworths Group CEO, Brad Banducci commented, “We were pleased with the material improvement in sales growth in Big W over the course of FY19 with customers noticing the improvements we have been making to price, range and in-store experience. In FY20, we expect a further reduction in losses as the turnaround of the business continues and unprofitable stores are closed.”

A store and DC network review was announced in April with the intention to close approximately 30 Big W stores over the next three years and two distribution centres at the end of their leases. The network review is ongoing with three stores recently announced to be closed in FY20.

Woolworths Group sales were up 5.3% to $59.98 billion (or 3.4% on a normalised basis) for the year. Net profit after tax (NPAT) increased 9.2% to $1.75 billion (or 7.2% on a normalised basis).

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