Countdown, the New Zealand supermarket chain owned by Australian retailer Woolworths, increased revenue 1.1 per cent in the first quarter of its financial year as it benefited from sales at new stores.
Sales at New Zealand supermarkets rose to $1.5 billion in the 14 weeks ended October 5, from $1.48 billion in the year earlier period, Sydney-based Woolworths said in a statement. Comparable sales for the quarter, which excludes the impact of store openings and closures, fell 0.1 per cent, impacted by flat inflation and continued subdued grocery industry market conditions, the company said.
New Zealand inflation accelerated at a slower than expected 1 per cent annual pace in the third quarter, suggesting the Reserve Bank is likely to keep interest rates on hold for longer than previously expected. Food prices slipped 0.2 per cent in the quarter, with grocery food down 0.7 per cent, fruit and vegetables dropping 4.1 per cent and alcoholic beverages declining 2 per cent, according to Statistics NZ data.
Countdown said today that its overall prices were flat in the quarter as higher dairy prices were offset by lower prices across other products including grocery, bread, liquor and produce.
Countdown managing director Dave Chambers said the company has been cutting prices through its 'price lockdown' and 'price drop' campaigns, including reducing the price of a homebrand loaf of bread to $1. As a result of the campaigns, more people were buying these products, leading to growth in customer transactions and items sold, he said.
