Woolworths Group this week announced a 1.9% drop in sales from its retail and entertainment wholesale and publishing operations for the 19 weeks to June 14, compared to the same period last year.
Like-for-like sales within Woolworths Retail were down 2.2%.
The company has also announced that Trevor Bish Jones is standing down as chief executive. He will leave in three months’ time.
The company said it remained cautious about the consumer economy, believing that the spending power of many consumers would be reduced by a number of factors including rising energy and food prices.
It said that the economic climate underlined the importance of what it was doing “to improve our value credentials”. This includes the Price Drop campaign and the successful Worthit! ranges, which cover housewares.
However, the company warned that its aggressive price actions would affect margin during the first half.