Woolworths Holdings’ on-demand grocery delivery service, Woolies Dash, recorded a 54.4% improvement in sales in the past year.
However, while far outstripping total sales growth, the impressive number is still slightly below recent sales figures from rival services, including Shoprite Group’s Checkers Sixty60 and Pick n Pay’s asap!, and is a moderation from the online sales boom it enjoyed during Covid.
In the 52 weeks to end-June, Shoprite reported that Sixty60 had grown sales by 58% year on year. In the 26 weeks to 25 August 2024, Pick n Pay grew online sales by 60.6%, “driven by sustained improvements in the Pick n Pay asap! on-demand retail platform”.
“Our Food business delivered market-leading turnover and concession sales growth of 12.1% and 7.3% on a comparable-store basis, reinforcing its strength and resilience, and the trust that customers place in our Woolies brand,” Woolworths said in a trading update for the 18 weeks ended 3 November 2024, published on Monday.
“Online sales increased by 36.9%, contributing 6.2% of Food sales, driven by our on-demand offering, Woolies Dash, which delivered sales growth of 54.4% for the period,” it said.
Woolworths said group turnover and concession sales for the period increased by 6.5% and by 6.8% on a constant currency basis.
Consumer sentiment
“In South Africa, while discretionary spend remains relatively constrained, consumer sentiment is improving, supported by moderating inflation, the start of easing interest rates and the prolonged suspension of load shedding, among other factors,” it said.
“In Australia, however, the sustained effect of high interest rates and elevated living costs continue to weigh on both retail footfall and spend.” — © 2024 NewsCentral Media
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