Woolworths Group online sales have grown 41.8 per cent to $3.5 billion on the year prior. The Group doubled eCommerce capacity due to increased demand for home delivery and pick up following the onset of COVID-19.
Announcing its F20 full year results to shareholders on Thursday August 27, Woolworths Group reported that a period of supermarket “pantry loading” saw Group sales increase 8.1 per cent to $63.7 billion.
Although the Group’s net profit after tax has fallen more than 20 per cent, digital and eCommerce growth performed very strongly, but experienced a step-change in Q3 due to the onset of COVID-19.
“The surge in demand for eCommerce services initially impacted sales and the customer experience but the business rapidly adapted and added capacity in Q4 to resume all normal services and provide additional capacity and convenience to customers,” The group said in F20 results to shareholders.
“ECom & Fulfilment profit further increased in F20 due to benefits from increased scale and efficiency improvements across stores, customer fulfilment centres and route optimisation.”
To rapidly respond to the surge in demand in Q3, the team doubled eCommerce capacity, scaled-up crowd-sourced delivery, opened 78 new home delivery stores and accelerated the roll out of contactless pick up to 86 locations.
The Group’s retail chain Big W, online sales increased by 181 per cent in Q4 supported by the roll out of 18 additional hub stores, the introduction of contactless drive-up and lay-by online convenience solutions.
Big W online sales increased 67 per cent in F20 on a normalised basis, in part due to increased demand for Home Delivery and Pick up following the onset of COVID-19.
Woolworths CEO Brad Banducci said the group has suffered a number of challenges during the financial year.
“At our half-year results in February, we spoke about the many challenges the communities we operate in had faced including drought, bushfires, the White Island tragedy in New Zealand and unrest in Hong Kong,” Brad said.
“Our main priority for F21 is making COVIDSafe a part of everything we do.”