Australian retailer Woolworths has increased earnings in its New Zealand supermarket business by 17.3 percent in a year in which supermarket buying power has been criticised.The owner of Countdown and Woolworths supermarkets reported earnings before inter
Australian retailer Woolworths has increased earnings in its New Zealand supermarket business by 17.3 percent in a year in which supermarket buying power has been criticised.
The owner of Countdown and Woolworths supermarkets reported earnings before interest and tax of $NZ244.1 million here, up from $NZ208.1m last year. It competes with Foodstuffs, a co-operative which operates New World and Pak'n'Save stores.
"We have made progress in reducing the price differential between our business and the equivalent offering from our main competitor," Woolworths said.
It also attributed the profit to its move to the single Countdown brand. Three new Countdown stores were added during the year in addition to 33 refurbishments.
The company said 68 percent of its stores are now branded Countdown and customers are responding as sales in rebranded stores are higher than in average sales growth for New Zealand supermarkets.
The company has been improving its range, developing exclusive brands and improving in-stock positions. It had improved shelf stock availability and reduced shrinkage.
The company had annual sales of $NZ4.957 billion in New Zealand, up 4.6 percent on last year.
The Green Party has said fruit and vegetable growers face ruin because the two giant supermarket chains are using their powerful position to put the industry at risk.
The shares of parent Woolworths jumped 7.4 percent when it reported a 10 percent rise in profit to $A2.02b ($NZ2.78b).
The company also owns Dick Smith consumer electronic stores. It said its consumer electronics New Zealand business experienced a 12.1 percent fall in same store sales and earnings before interest and tax fell as consumer spending tightened here. The business had lower margins.
