TCF POST Report
Sydney, 26 August 2026 — Woolworths Group’s full-year results, released to the ASX today, show BIG W swinging back into profit for the first time in years, with a sharper clothing strategy playing a central role in the recovery.
The Numbers
BIG W posted EBIT of $64 million for the 52 weeks to 28 June 2026, reversing a $33 million loss in the prior year — a $97 million turnaround. Sales edged up just 0.9% to $4.72 billion, but the more telling figure was gross margin, which climbed 152 basis points to 31.4%, as the retailer pulled back from discount-driven volume in favour of full-price sell-through.
Woolworths attributed the margin gain chiefly to Clothing, where “improved range, availability and reduced clearance activity” lifted profitability, alongside a smaller contribution from stronger Home and Toys trading.
Betting on Private Label
Own-brand sales across BIG W rose 7.5% for the year, with management specifically crediting Clothing — alongside Toys and Home — for the gain, pointing to “continued investment in design and sourcing capabilities.” The push into private label appears central to BIG W’s strategy of rebuilding margin without relying on foot traffic growth.
Inventory Discipline via RFID
The retailer also completed a network-wide rollout of RFID technology in its Clothing division during the year, a step that typically sharpens stock visibility and reduces shrinkage — consistent with the “better stock flow” the company cited as a broader driver of its margin improvement.
A New Value Campaign
To shore up weaker-performing general merchandise categories, BIG W launched Big Price Drops in April, a value-repositioning campaign that helped lift customer sentiment on price perception by one point year-on-year, even as clearance activity was pared back elsewhere in the business.
Outlook Tempered by Consumer Caution
Despite the improved trading performance, Woolworths struck a cautious tone on the year ahead. Total BIG W sales in the first eight weeks of F27 have declined modestly, which the company linked to “ongoing cost-of-living pressures on households, particularly budget customers.” Management said it would continue prioritising “an improved in-store experience, differentiated range and targeted value investments” — suggesting clothing range and pricing decisions will remain under close watch as the retailer looks to sustain last year’s gains into a more constrained spending environment.
