WELLINGTON: Countdown, the New Zealand supermarket chain owned by Australian retailer Woolworths, lifted third-quarter sales by 5 per cent as it eked out bigger volumes in a low-inflation environment.
Sales rose to $1.5 billion in the 13 weeks ended April 5 from $1.43 billion a year earlier, the Sydney-based parent said in a statement.
In Australian dollar terms, sales rose 7.7 per cent to A$1.43 billion as the company benefited from a weaker currency during the period, increasing the value of offshore exported earnings.Year-to-date sales rose 2.4 per cent to $4.55 billion.
“Our ‘Price Drop’ and ‘Price Lockdown’ campaigns continue to resonate well with customers, driving improved price perception results as well as growth in customer numbers and units sold,” Woolworths said.
“The Countdown Supermarkets food price index for the quarter was deflation of 0.1 per cent with deflation continuing across the major key categories, including grocery, meat and bakery.”
New Zealand food prices have been subdued over the past year as globally low inflation keeps price increases muted.Government figures show grocery food prices rose at an annual pace of 0.5 per cent in March.
Countdown opened five new stores in the first six months of the current financial year, refurbished three and closed two, taking its total store numbers to 174.It expects to open a net six new stores over the full year, ahead of its long-term target of three to five stores a year.
