Woolworths Group has reported its total ecommerce sales increased by 48.1 percent over the half, while average weekly traffic across its digital platforms rose.
In its first half year results for 2022 the retail and supermarket giant reported its average weekly digital platform traffic increased by 30.5 percent, stemming from continued focus on improved customer experiences and offerings.
Group ecommerce sales penetration also reached 11.6 percent, up from 8.1 percent noted in the last half.
Woolworths Group CEO Brad Banducci told investors “despite the disruption and our primary focus on team and customers we make good progress in our strategic agenda during the half.”
Banducci said “digital traffic remains strong across all banners” as the Group recorded 54 million visits over the half.
Operating capex for the half was $822 million up from $730 million in the prior year and included $126 million on projects with strong sustainability benefits in areas such as refrigeration and solar.
Within its sustaining capital investment the Group spent $87 million on IT, a massive decrease from the $115 million spent in the first half 2021.
Meanwhile growth capital investment came in at $235 million over the half, with spend towards digital at $55 million, a slight fall from the $62 million last reported.
The Group reported its ecommerce investment was $68 million, just over double from the $38 million in the same time last year.
The Group’s total operating capex for the 2022 financial year is expected to reach around $2 billion.
WooliesX
The supermarket launched new Queensland-based estore in Maroochydore resulting in up to 4,000 orders per week.
The Group’s innovation arm, WooliesX, recorded 15.6 million visits across web and the app and the expansion of its Scan & Go smartphone shopping service to 33 supermarkets and 11 Metro Food stores.
Over the half personalised digital experiences were created for customers, offering customised recipes based on search trends.
Ecommerce sales increase by more than half, reaching $2.6 billion while total ecommerce customers increased by 44 percent, rising to 2.1 million consumers.
The Group’s online retail platform ‘Everyday Market’ also went live allowing customers to purchase a wider range of products.
Big W
Banducci noted “Big W store closures had a material impact on our earnings for the half” as the Group reported sales dropped by around 4 percent due to the ongoing Covid-19 pandemic.
Big W reported $2.35 billion in sales, a 9 percent drop from the same time last year.
Banducci said “it would be remiss not to mention the continued progress across ecommerce and digital at Big W”, which has been critical during stores closures, including 91 shops in July 2021.
“Big W ecommerce penetration reached over 30 percent and peaked at 15 percent of Australian food sales in [the first quarter] in New South Wales placing enormous pressure on our online team.”
However, Big W made progress on its strategic priorities over the half including accelerating its digital experience through an app expected to launch in March and its Everyday Market platform.
The Group also fast-tracked in store fulfilment capabilities through changes to its operating model and training staff to become multi-skilled.
Banducci added the Group has “also established Q-Retail in partnership with Quantium to deliver on the Group's advanced analytics ambition following the increase in our shareholding in Quantium to 75 percent.”
Group sales reached $31.89 billion, while ecommerce sales totalled $3.49 billion.
Woolworths Groups net profit after tax (NPAT) reached $795 million over the half, down 6.5 percent from the year prior.
