Key Highlights

  • Woolworths reported first-quarter group sales of $19.35 billion.
  • Australian Food sales rose 6.9%, while group eCommerce sales rose 16.0%.
  • New Zealand Food and BIG W are areas the company is working to rebuild.
  • The investor day on 18 November is the next scheduled event.

Woolworths Group Limited (ASX:WOW) is one of the large consumer companies being followed on the ASX 200 today, with first-quarter sales of $19.35 billion now in the market and an investor day scheduled for 18 November 2026. The company's update, released on 28 October, answered the immediate question about trading momentum: Australian Food sales rose 6.9% in the 14 weeks to 4 October, while group sales increased 4.7%. The next step for investors is the investor day, when management is expected to discuss the Business in more depth.

The First-Quarter Numbers

Group sales for the period reached $19,353 million, up 4.7%, or 5.7% on a constant currency basis. Australian Food generated $14,841 million, an increase of 6.9%, and remains the dominant part of the group. Australian B2B sales rose 4.4% to $1,634 million.

The other divisions showed a more mixed picture. New Zealand Food sales fell 6.4% in Australian dollars to $1,853 million, although they rose 2.9% in New Zealand dollars, which indicates that currency translation had a material effect. W Living sales declined 0.7% to $1,380 million. The company said New Zealand Food and BIG W were focused on rebuilding sales momentum.

The Role of eCommerce

Online shopping continued to grow faster than the wider business. Group eCommerce sales reached $3.1 billion in the quarter, an increase of 16.0%. Sales through the company's eComX business rose 20.2%, with its On Demand service identified as a key driver. eCommerce penetration in Woolworths Food Retail reached 18.2%, up two percentage points.

These figures suggest that nearly one dollar in five in the Food Retail business is now being spent online. Online orders typically carry fulfilment and delivery costs that differ from those of in-store shopping, which is why investors look at profitability alongside growth in this channel. New Zealand eCommerce grew 4.6%, with penetration of 18.9%, showing a similar level of digital adoption across the Tasman even though sales growth was slower.

The October Trading Comment

Woolworths said that October-to-date sales growth in Australian Food was broadly in line with first-quarter trading after adjusting for its Ooshies promotion. That qualification is relevant because promotional collectable campaigns can affect comparisons between periods. The company also said it was well placed for the Christmas and holiday period, which is the most significant trading window of the retail year.

Chief executive Amanda Bardwell said the company was pleased with the start to the year in Australian Food and acknowledged that many customers remain under significant pressure. Woolworths is offering more than 500 budget-conscious festive products as part of its effort to make Christmas more affordable. The company's focus on value reflects a cost-of-living environment that is shaping behaviour at the checkout.

Competition With Coles

The Woolworths update was followed on 30 October by first-quarter sales from Coles Group, which reported supermarket sales growth of 3.6% over a 13-week period. That compares with the 6.9% Australian Food growth at Woolworths, although the two periods are not identical in length or end date. Coles has responded by outlining further price Investment and a relaunch of its Every Day Price program.

Any step-up in price activity by one major supermarket can influence the other's choices, so investors will be watching how the two companies approach the Christmas period. Margins, rather than sales alone, will determine the financial effect of this competition. Woolworths did not provide profit figures in its first-quarter update, as the release focused on sales, so the half-year result will offer the first full view on margins in FY27.

The Household Backdrop

The trading environment for supermarkets is being shaped by the broader economy. The Australian Bureau of Statistics reported annual Inflation of 4.3% in September 2026, with higher fuel and housing costs the main contributors. The Reserve Bank raised the cash rate to 4.85% on 3 November and major banks will increase variable Mortgage rates from 13 November.

Food retailers are generally less exposed to changes in household spending than sellers of discretionary goods, as consumers must continue buying groceries. However, households under pressure may trade down to lower-priced items, buy more on promotion or shop around between retailers. Those behaviours can affect sales mix even when overall sales are growing. The ABS reported 2.1% nominal growth in household spending over the September quarter, but only 0.7% growth in volumes, which suggests that much of the increase reflected higher prices rather than greater consumption.

What to Watch at the Investor Day

The investor day on 18 November provides a scheduled opportunity for management to address strategy. Points of interest include the direction of eCommerce and fulfilment investment, plans for New Zealand Food and BIG W, and the approach to pricing in Australian Food. Any medium-term targets would also be of interest, should the company provide them. Because the event occurs ahead of the Christmas trading period, any updated comments on recent sales will also be closely read.

Fresh food and everyday essentials account for much of the Australian Food result, which is one reason the division is closely watched as a measure of household staples demand. The 14-week period also needs to be kept in mind when comparing Woolworths' figures with other retailers, as a longer period can include different promotional timing. On a group basis, the difference between 4.7% reported growth and 5.7% constant currency growth shows the effect of the New Zealand dollar on translated sales.

Key Takeaways

Woolworths reported first-quarter group sales of $19.35 billion, with Australian Food up 6.9% and group eCommerce up 16.0%. New Zealand Food and BIG W were identified as areas working to rebuild momentum. October sales in Australian Food were broadly in line with underlying first-quarter trading. The investor day on 18 November is the next scheduled event, while competitive pricing and household budgets remain the main themes for the sector.