Top Menu

Big W profits slump as retailer confirms store closures

Big W has suffered a stunning $85 million loss for the year ending 30 June, 2019.

ADVERTISEMENT

The retailer’s parent company Woolworths on Thursday released its full-year results, which revealed the loss in line with earlier estimates.

The loss was also an improvement from a loss of $110 million in FY18.

The news came alongside a spike in sales, which increased 6.5% to $3.56 billion  for the year to 30 June, 2019.

Sales growth was fuelled by an increase in customer transactions, with customers putting 4.4 per cent more items in their baskets, according to Woolworths.

Normalised online sales also increased by 128% in the year to mid-2019.

ADVERTISEMENT

ADVERTISEMENT

The news comes after the retailer in April announced plans to close 30 stores over the next three years.

The retailer said the coming financial year will see a renewed focus on “creating a sustainable business.”

Woolworths Group CEO, Brad Banducci said he was happy with the results.

“We were pleased with the material improvement in sales growth in Big W over the course of FY19 with customers noticing the improvements we have been making to price, range and in-store experience. In FY20, we expect a further reduction in losses as the turnaround of the business continues and unprofitable stores are closed.”