Dick Smith Up As Woolworths Struggle
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Woolworths Limited has reported a 6 per cent increase in sales to $27.2 billion for the 27 weeks to 3 January 2010. The company has also reported strong sales in its Dick Smith-led Consumer Electronics arm.Woolworths’ Chief Executive Officer and Manager Director, Michael Luscombe said, “Our supermarkets achieved solid volume and market share growth whilst experiencing lower levels of inflation in Australia and New Zealand, and the cycling of the anniversary of the Australian stimulus payments.”

Total Consumer Electronics sales grew 5.9 percent during the half and 0.2 percent for the second quarter. Australian Dick Smith Stores (excluding Tandy and ex Powerhouse stores) achieved comparable sales of 12.2 per cent for the half and 7.2 per cent for the second quarter.

According to the company statement, the result reflects the strong customer acceptance of the continued roll out of its new refreshed Dick Smith offer.

“The new format Dick Smith stores continue to grow sales at a greater rate than our older Dick Smith format stores. Categories that had pleasing results included Computer, Entertainment, and Gaming,” said the company.

Woolworths Limited has also reported that Big W sales grew 2.3 per cent during the half but declined 0.3 percent for the second quarter.

“Big W maintained, and in some cases improved, its competitive pricing position in the market. The repositioning of Big W in prior year places it in an ideal position to offer customers a great range of merchandise at low prices,” said the company.
In addition, Woolworths Limited reported that good progress made with online sales increased 41 per cent for the half.