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Highlights

  • Woolworths' quarterly sales hit AU$17.31 billion, surpassing forecasts.

  • Shares peak at AU$32.22, marking a two-month high.

  • Flat online sales raise concerns of market share shift to rival Coles.

Shares of Woolworths Group Ltd (ASX:WOW) climbed sharply on Thursday after the retail giant reported better-than-expected quarterly sales, reinforcing investor confidence despite emerging competition in the online segment.

The stock rose as much as 2.1% to AU$32.22 during intraday trade—its highest level since February 26—before slightly easing to AU$31.75, still up 0.6% for the session. So far this year, Woolworths shares have gained 5.2%.

The company reported total group sales of AU$17.31 billion for the third quarter, beating analysts’ average forecast of AU$16.64 billion. The stronger-than-expected result comes amid a competitive retail landscape and ongoing cost-of-living pressures facing Australian households.

Woolworths’ performance contrasts with that of its primary competitor, Coles Group Ltd (ASX:COL), which posted a 3.4% year-on-year rise in third-quarter sales on Wednesday.

However, some analysts flagged caution over Woolworths’ digital performance. Citi noted that online sales in the company’s Australia Food division remained flat quarter-on-quarter, suggesting that Coles may be gaining ground in the online grocery segment. 

Despite the online softness, the company’s brick-and-mortar presence continues to underpin its strong overall sales. With over 1,000 supermarkets across the country and a dominant position in household staples, Woolworths remains a central player in Australia’s retail economy.