Key Highlights

  • Group sales rose 4.7 per cent to $19,353 million in the first quarter.
  • Australian Food comparable sales increased 6.1 per cent on higher transactions and basket sizes.
  • eCommerce grew faster than stores and loyalty membership rose.
  • New Zealand Food and BIG W sales were lower, reflecting currency, competition and a softer economy.

Woolworths Group Limited (ASX:WOW) has given investors watching ASX share prices a fresh set of numbers to work through, after its first quarter sales results for the 2027 financial year showed group sales of $19,353 million for the 14 weeks to 4 October 2026, up 4.7 per cent, or 5.7 per cent in constant currency. The update, released to the ASX on 28 October 2026, points to Australian Food as the main source of growth, while New Zealand Food and BIG W remain works in progress.

Australian Food Carries the Quarter

Australian Food total sales reached $14,841 million, up 6.9 per cent, with Woolworths Food Retail contributing $14,680 million, also up 6.9 per cent. Comparable sales rose 6.1 per cent. Within that, transactions rose 3.0 per cent, items per basket rose 1.0 per cent and comparable item growth was 4.0 per cent, which indicates the lift came from more visits and more goods sold rather than from price increases.

That point matters because average prices fell 0.5 per cent across Australian Food, or 0.7 per cent excluding tobacco. The company said this was the eleventh consecutive quarter of lower average prices. Own and exclusive Brand sales rose 8.5 per cent, and the Lower Shelf Price range now covers more than 1,000 products.

Chief Executive Officer Amanda Bardwell said: "We are pleased with the start to the year in Australian Food". She also acknowledged the backdrop facing shoppers, saying: "We recognise that many of our customers remain under significant pressure".

Online Growth and Loyalty Metrics

Digital channels remain a large part of the Woolworths story. Group eCommerce sales rose 16.0 per cent to $3.1 billion. In Australia, WooliesX sales rose 18.1 per cent to $3,010 million, with eComX sales up 20.2 per cent to $2,665 million, driven by On Demand delivery. eCommerce penetration in Australian Food rose to 18.2 per cent from 16.2 per cent a year earlier, and 48 per cent of delivery orders were fulfilled within two hours.

Everyday Rewards had 10.9 million active members in Australia, up 3.7 per cent, with a tag rate of 73.9 per cent. Customer satisfaction measures were slightly softer, with Australian Food Voice of Customer Net Promoter Score at 49 compared with 50 a year earlier. The group-wide score was 48, up 1 point.

Online penetration is a double-edged driver for investors. It supports sales growth and customer engagement, but delivery and fulfilment carry their own costs, so the mix between store and online sales feeds directly into margins.

New Zealand, B2B and W Living

New Zealand Food sales were NZ$2,251 million, up 2.9 per cent, but A$1,853 million in Australian dollar terms, down 6.4 per cent, showing the effect of currency on reported numbers. Comparable sales rose 2.6 per cent and comparable items were about flat, down 0.1 per cent. Average prices fell 0.6 per cent. The company said growth slowed after the Ooshies collectibles promotion ended, reflecting a softer economic environment and a highly competitive market.

Australian B2B total sales were $1,634 million, up 4.4 per cent. B2B Food rose 4.4 per cent, with PFD up 3.9 per cent, and B2B Supply Chain rose 4.5 per cent.

W Living sales were $1,380 million, down 0.7 per cent, or up 0.3 per cent excluding MyDeal, which has closed. BIG W sales were $1,127 million, down 0.9 per cent, with comparable sales down 1.3 per cent, although BIG W eCommerce gross transaction value rose 7.7 per cent. Petstock sales were $253 million, up 6.1 per cent, with comparable sales up 4.3 per cent and eCommerce up 24.7 per cent.

Interest Rates and the Household Budget

The quarter landed just before a significant shift in the Interest Rate backdrop. On Tuesday 3 November 2026, the Reserve Bank of Australia raised the cash rate target by 25 basis points to 4.85 per cent, its fifth increase this year. The board said Inflation "remains elevated" and that "The economy is slowing, housing prices have fallen significantly and the Unemployment rate has risen." The four major banks then announced variable home Loan rate rises of 0.25 percentage points, effective 13 November 2026.

For a grocer, higher Mortgage repayments can push households toward value ranges, own brands and fewer discretionary items. That is consistent with the Woolworths focus on lower shelf prices and budget-conscious festive products.

Food is a staple, so supermarket sales tend to be less sensitive to rate rises than discretionary retail. However, the mix of what customers buy and how much they respond to promotions can still change, and that feeds into gross margins.

What Woolworths Flagged Next

On current trading, Woolworths said October-to-date Woolworths Food Retail sales growth was broadly in line with Q1 trading after the Ooshies promotion. It said the Business was well positioned for Christmas and the holiday period, with more than 500 budget-conscious festive products. New Zealand Food and BIG W are focused on building sales momentum.

The next scheduled event is an Investor Day on Wednesday 18 November 2026 at 9:00 am AEDT, which will be webcast. Investor days often provide more detail on strategy, cost programs and Capital spending, so it may give the market more to assess on how Woolworths plans to balance price Investment with Earnings growth.

Key Takeaways

Woolworths Group's first quarter showed group sales up 4.7 per cent to $19,353 million, with Australian Food comparable sales up 6.1 per cent on higher transactions and basket sizes while average prices fell. eCommerce continued to grow faster than stores, and loyalty membership rose. New Zealand Food and BIG W were lower, with currency, competition and a softer economy weighing on reported results. With the Reserve Bank lifting the cash rate to 4.85 per cent and banks passing on the increase, the way households adjust their grocery spending is likely to remain a key driver for the Woolworths share price, alongside the details due at the 18 November Investor Day.