Countdown supermarket sales rose 3.2 per cent in the first quarter of the 2018 financial year, boosted by more expensive dairy products and fresh produce.
New Zealand food sales increased to $1.63 billion in the 14 weeks to October 1 from $1.58 billion in the same quarter a year earlier, Woolworths said in an update to the Australian stock exchange. In Australian dollars, sales gained 0.4 per cent to A$1.5b (NZ$1.7b), with the smaller gain down to a weaker kiwi dollar against its Australian counterpart.
Comparable sales rose 2.7 per cent in the first quarter as "customers responded positively to our investment in service despite a number of competitor promotions during the period", Sydney-based Woolworths said.
Countdown's food price index rose 1.6 per cent in the quarter, "driven by a combination of continued New Zealand dairy price inflation and higher levels of inflation in fresh produce impacted by growing conditions and supply", Woolworths said. Government figures show grocery food prices rose 1.4 per cent in the three months ended September 30, outpacing a 0.7 per cent increase in the broader food prices index.
Woolworths said 52 of its stores now have product ranges tailored for customer demographics. There are now 184 Countdown stores in New Zealand, with the company opening one and closing one in the quarter, while the number of franchise stores rose by one to 66.
