GROCERY giant Woolworths Ltd yesterday reported a full-year sales increase of 4.2 per cent, below market expectation of a five per cent lift.
Sales rose to $51.69 billion for the 52 weeks to June 27, 2010, from $49.6 billion a year earlier.
Ms Luscombe described it as a "strong volume and market share result''.
Australian food and liquor sales for the year were $34.68 billion, an increase of 5.1 per cent over the year before.
This sales included food inflation at 1.1 per cent for the year, reflecting deflation in produce and perishables over the period.
Woolworths said its strategy to reduce shelf prices was proving effective.
"This combination has driven increased market share, customer numbers, items sold and basket size,'' the company said in a statement today.
It said price deflation in home entertainment, toys and sporting goods and the absence of the stimulus affected Big W department stores, where sales dropped 1.7 per cent over the year.
Consumer electronics sales dropped by half a per cent in Australia and new Zealand with increasing price competition resulting in lower margins.
But Woolworths, which owns the Dick Smith and Tandy chains, hopes new products will help boost consumer electronics sales.
"There is no doubt that the iPad has been a tremendous stimulus for sales,'' Mr Luscombe said.
"We're eagerly awaiting the new and improved iPhone 4 to come out and hopefully there will be a few other new gizmos to stimulate the customer market.''
Woolworths shares closed Wednesday down 49 cents, or 1.84 per cent, at $26.19.
