Chicken, make-up and books: What the budget-savvy are buying at Woolies

The store’s chief executive, Daniel Hake, said trade was strong across kidswear and toys as young families came under pressure, while customers were citing Big W’s books offer as a key reason to come in-store.

“[Books] is one of the areas that does get mentioned, together with toys,” he said.

Big W’s online sales dropped by 31.4 per cent during the half, however, as shoppers went back in store. The company also flagged that item and transaction growth slowed towards the end of last year.

Woolworths was the latest retailer to confirm inflation picking up pace in the lead-up to Christmas, with food prices jumping 7.7 per cent across its stores in the three months to December.

Rising chicken and dairy prices drove the increase, though like rival Coles, Woolworths’ fruit and vegetable prices started to moderate in the lead-up to the end of the year.

Woolworths on Wednesday reported a net profit after tax before significant items of $907 million, a jump of 14 per cent. Earnings before interest and tax for the period came in 18.4 per cent higher at $1.6 billion.

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Banducci said in documents lodged with the ASX on Wednesday that food sales had remained strong in the first seven weeks of the 2023 calendar year, rising 6.5 per cent.

“Sales momentum has continued to be strong in the half to date and the operating rhythm of our business continues to improve,” he said.

The company declared an interim dividend of 46 cents a share, a jump of close to 18 per cent on the same time last year.

Shares were 2.1 per cent stronger in mid-afternoon trade to $37.49.

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