Woolworths’ New Zealand supermarket sales saw an increase of 3.8 per cent, to NZ$1.55 billion, in the latest quarter, compared to the same period in the previous year (NZ$1.50 billion). When figures were adjusted for Easter, supermarket sales decreased 0.1 per cent.

Comparable sales grew 0.9 per cent, or 0.6 per cent adjusted for the quarter ending April 3. Sales growth remained robust despite deflation of 0.7 percent in the Countdown Supermarkets food price index. Countdown is a subsidiary of Australia’s Woolworths Limited.

“Price and service perception measures both improved over the quarter as we continued to lower the price of groceries through our ‘Price Down’ program and focused on customer service,” the company stated.

The total number of Countdown Supermarkets at the end of the quarter was 183, with the total number of franchise stores remaining at 63.

“We are undertaking significant cost reductions to improve base profitability whilst restructuring the business to build up our direct sourcing and design capabilities to ensure that our new range resonate with our customers,” a Woolworths’ statement issued to the ASX said.

The 0.9 per cent comparable sales decline contrasts with the 0.2 per cent increase in comparable sales during the same quarter a year ago. It is also worse than the 0.6 per cent comparable sales decline recorded in the second quarter, but slightly better than the first quarter’s one per cent fall.

Newly installed Woolworths CEO, Brad Banducci, is reviewing the company’s general merchandise operations. Woolworths’ failed Masters Home Improvement business, which it is gradually exiting, reported a 11.4 per cent increase in total sales to $507 million, unadjusted. Masters sales were up 28.8 per cent on a comparable adjusted basis, to $282 million, while Home Timber and Hardware sales totalled $225 million, down 3.8 per cent on an adjusted basis. Woolworths is still yet to agree on a price to buy out its Masters joint venture partner, Lowes’, stake in the loss-making DIY chain.