Like-for-likes slid 6.5 per cent for the 18 weeks to December 2. Price deflation hit entertainment and sales of seasonal products were slow, although performance in toys was strong.
However, margin has improved and is 150 basis points ahead of last year.
Customer response to the Big Red Book was encouraging. Since its launch on October 17, multichannel sales have rocketed 160 per cent against last year and now account for 7.5 per cent of total sales, which is ahead of budget.
However, the retailer reported that the popularity of the multichannel venture has 'added some short-term cost pressure to the business', as it adapts to ensure reliable fulfilment of orders.
Woolworths' bosses hope that, because Christmas falls on a Monday this year, an extra weekend of shopping means sales may simply come later than usual. However, the retailer said: 'Given the sales performance of the past two months, it is appropriate to be cautious. In order to achieve results for this financial year around the lower end of market expectations, we will need to achieve a sales uplift for the remainder of the Christmas trading period and continued improvement in the margin.'
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