Woolworths’ NZ supermarket sales barely budge in 3rd qtr in face of ‘subdued, competitive’ market

Woolworths 12-month price history (ASX.com)

Woolworths [ASX: WOW], Australia's biggest supermarket operator, said third quarter sales barely budged at its Countdown chain in New Zealand, in the face of a subdued, highly competitive market.

New Zealand supermarket sales edged up 0.1 percent to $1.4 billion in the 13 weeks ended April 6, the Sydney-based retailer said in a statement. The strength of the kiwi dollar meant sales rose 16 percent in Australian dollars.

The 167 Countdown supermarkets compete with larger rival Foodstuffs, made up of two regional cooperatives which have 139 New World stores, 50 PAK'nSave outlets, 283 Four Square outlets, liquor stores and wholesaling. Foodstuffs had annual sales of $8.6 billion in 2013, while Countdown's are running at an annualised $5.6 billion.

"Trading for the quarter was impacted by subdued grocery market conditions, a highly competitive marketplace and price deflation across a number of categories," said Dave Chambers, managing director of Woolworths' New Zealand supermarkets division.

Countdown is being investigated by the Commerce Commission following allegations from Labour MP Shane Jones that it engaged in anti-competitive behaviour over the treatment of local suppliers. Jones is leaving parliament after accepting a South Pacific economic advisory job for the government. Woolworths made no mention of the allegations in its quarterly results.

The parent company reported a 5.3 percent gain in third quarter sales to A$15.2 billion, led by a 4.4 percent gain to A$10.4 billion for Australian food and liquor.

Woolworths stock fell 2.6 percent to A$37.05 on the ASX and has gained 12 percent this year.


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot


Sym Price Change
USD 0.7182 -0.0049 -0.68%
AUD 0.9423 0.0061 0.65%
EUR 0.6574 -0.0015 -0.23%
GBP 0.5863 -0.0022 -0.37%
HKD 5.5714 -0.0366 -0.65%
JPY 74.6510 -0.0990 -0.13%


Commodity Price Change Time
Gold Index 1268.4 6.810 2016-10-19T00:
Oil Brent 52.6 0.980 2016-10-19T00:
Oil Nymex 51.6 1.300 2016-10-19T00:
Silver Index 17.7 0.053 2016-10-19T00:


Symbol Open High Last %
NZX 50 6973.8 6978.9 6973.8 -0.34%
NASDAQ 5238.2 5252.1 5246.4 -0.09%
DAX 10665.8 10748.4 10645.7 0.52%
DJI 18161.9 18249.0 18202.6 -0.22%
FTSE 7021.9 7047.6 7021.9 0.07%
HKSE 23412.7 23500.8 23305.0 0.30%
NI225 16999.4 17235.5 16998.9 1.39%
ASX 5435.4 5457.9 5435.4 0.12%