Woolworths NZ sales growth rebounds after falling behind inflation

Woolworths shopping bags — Stronger food sales and e-commerce lifted Woolworths’ FY26 result. (Source: Woolworths)

By Robert Stockdill Aug 26, 2026

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Woolworths’ New Zealand sales growth failed to keep pace with inflation in the year to June 28, however, the tide appears to have turned in the first eight weeks of the new trading period.

ASX-listed Australian parent Woolworths Group released its annual results on Wednesday, revealing New Zealand sales were up by 2.5 per cent last financial year, trailing the Stats NZ official inflation rate of 4.1 per cent. However, in eight weeks since June 29, local sales rose by 4.2 per cent.

Woolworths Group CEO Amanda Bardwell said the New Zealand business found the second half year’s trading environment considerably more challenging than the first, with sales growth slowing to 2.1 per cent. Management attributed the results to a “flight to value” among Kiwi consumers in what was described as “a highly competitive” market. Full-year sales rose to $8.49 billion, up from $8.28 billion.

However, the company’s focus on internal efficiencies is showing signs of gaining momentum on both sides of the Tasman. In New Zealand, earnings before interest and tax (EBIT) rose by 8.8 per cent from $150 million in FY25 to $163 million. The company’s EBIT margin rose 11 basis points to 1.9 per cent.

Overall Woolworths Group sales reached A$71.5 billion, up 3.6 per cent, with EBIT up 12.7 per cent to $3.1 billion. The company has set aside $710 million in a pre-tax provision following a Federal Court ruling over historical underpayments of salaried store team leaders.

Bardwell attributed the higher profit to measures taken during the year which are beginning to show through in the core grocery business.

“The action we have taken in F26 to deliver more value for customers, greater convenience and better execution has improved customer advocacy and sales momentum in our key Australian food business, particularly in H2,” she said.

“Sales momentum together with strong productivity and cost discipline has delivered solid EBIT growth with an increased contribution from all trading segments.”

However, Bardwell told an earnings call she expected New Zealand trading conditions to “remain subdued” in the immediate future.

Woolworths Group operates 181 supermarkets in New Zealand, trading under its own name as well as smaller community grocery stores under the SuperValue and FreshChoice brands. During the year, it completed the rebranding of Countdown stores under the Woolworths banner, opened three new stores, closed four, and converted two to the FreshChoice format.