Consumer electronic sales in Australia appear to coming back after Dick Smith today reported a 7.5% lift in sales. Big W also reported stronger sales in the toys; office, consumer electronics and home market however sales were not as good as Dick Smith, who had a poor Q3.
BIG W delivered “positive Easter sales growth” in the third quarter of 0.5 per cent, 2.0 percent adjusted, compared to last year’s “flat” Easter sales showing a 5.8 percent drop, according to the latest figures to 03 April 2011.
Total Big W sales were positive in both January and February, although March showed signs of weakness. Sales in its Office and Home departments were among the strongest in the quarter, it announced to investors today.
However, store footfall is growing for the retail discounter as the number of items being bought are also on the rise.
And sales in its electronics department could get even bouncier as it continues selling the much sought after iPad 2 “at a market leading price position.”
Price deflation, the stronger Aussie dollar and cost price reductions passed on to customers all helped drive Big W sales, Woolworths said in a statement today.
Total electronics sales for Woolies-owned Dick Smith chain, increased 7.5 percent, or 6.4 percent on an adjusted figure, compared to the same period last year. In Australia, Dick Smith fared well with 6.7 per cent sales lift (5.96% adjusted).
However, its New Zealand performance slumped, recording a 7.4 per cent drop in sales.
This “reflects the strong customer acceptance” of refreshed Dick Smith stores which has resulted in market share growth” in key categories.”
And the new strategy is certainly working for the “techxperts” with new stores outperforming the older formats, it also revealed.
It’s total store count is now 398, opening six new locations here and closing 18 NZ stores including three as a result of the recent Christchurch earthquake.
Woolworths reported third-quarter sales grew 5.1 per cent overall compared with the same period last year.
Sales for the three months to April 3 were $13.56 billion, compared with sales of $12.91bn in the third quarter 2010.
“Despite the continuing deflationary effects across our businesses and the disruption caused by various natural disasters, this represents an improving sales trend compared to the first half increase of 4 per cent, particularly in all of the Australian businesses,” chief executive officer Michael Luscombe said in a statement.
Shares in Woolworths were up 1.3 per cent to $26.87 shortly after the report was released. The benchmark S&P/ASX 200 index was 0.2 per cent higher.
The company’s supermarket division reported sales of $11.77bn, up 5.2 per cent from the previous corresponding period’s result of $11.19bn.
Its general merchandise division saw sales of $1.35bn, up 1.7 per cent from the previous corresponding period’s sales of $1.33bn.