October 01 2007

Multi-channel sales up 93.2% at Woolworths

Woolworths has announced multi-channel sales up 93.2% for the half year to 4 August. This sales increase is against a loss for the group of £59.2 million (compared to £66.8 million last year).

Over the past six months, Woolworths has continued to develop its multi-channel offering with the launch of its second 'Big Red Book' catalogue in March, changes to the supply chain and improvements to the IT systems controlling stock flow.

The company reports that the majority of customers collect their orders from a store rather than having them delivered and that "approaching 90% of customer-collected orders are now moving through [its] routine supply chain rather than using third party couriers" which has had "a significant impact on the overall profitability of our multi-channel sales".

The company expects the year-on-year growth rate to slow in the second half - although it still anticipates increased sales and has therefore increased fulfilment capacity.

Trevor Bish-Jones, Chief Executive of Woolworths Group plc, said: "Our first half performance is encouraging. The major contributor to the improved performance was the retail business, but we have made progress across all parts of the Group. Going forward, we remain cautious about the retail environment going into the important second half - so are continuing to run the business tightly, with a focus on cash, cost control and margins."

Emma Herrod