Woolies delivery service rocking
Woolworths has reported strong growth in its online sales, with Woolies Dash sales skyrocketing by over 70%.
This is according to Woolworths Group’s trading statement for the financial year ending 30 June 2024, which was released today.
Although Woolworths mentioned multiple hindrances to trading throughout the year, many of its vital business assets saw significant online growth over the period.
The company’s South African online food sales performed particularly well, growing by 52.8% and contributing to 5.5% of total South African sales.
Woolworths has attributed this to the increased penetration of its Woolies Dash delivery service. The food and clothing retailer reported that its delivery service has grown by a staggering 71.2% over the 53 weeks.
“Our Food business delivered strong and above-market growth, reinforcing its strength and resilience, and the trust that customers place in our Woolies brand,” the retailer said.
Woolworths also noticed a substantial increase in online sales of 30.4% in its fashion, beauty, and home business, which contributed 5.6% of total sales.
However, the group believes external factors negatively impacted trade.
“Whilst our Fashion, Beauty, and Home business continues to make steady progress on a number of its strategic priorities, trade was impacted by the weak macro environment, poor availability, and increased competition from the disruptive entry of international online retailers,” Woolworths said.
This contribution is similar to online food sales, showing that Woolworths’ online penetration is still only between 5% and 6%.
However, the company said it is consistently seeing online sales growing by over 50% in food, and beauty, home and fashion.
Loading ...