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Woolworths cuts its way to sales victory

Aggressive discounting on food has helped supermarket giant Woolworths beat its fierce rival Coles on sales growth.

A Woolworths sign
Woolworths has scored a victory over Coles in the supermarket war. (AAP)

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Source: AAP


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Woolworths has scored a victory over Coles in the supermarket war

* Comparable food sales growth of 1.9pct for first half of 2016/17 vs 1.3pct growth for Coles

* Second quarter comparable sales up an even stronger at 3.1pct, vs 0.9pct growth for Coles

* Turnaround from last year when Woolies first half comparable sales declined 0.8pct

* Woolies has spent more than $1 billion to lower food prices in a year

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* The price cuts have hit supermarket earnings - down 13.9pct to $811.6m in the half

* Liquor business is also strong - earnings up 3.1pct to $302.3m

* BIG W is still in trouble - earnings down 89 per cent to $8.1 million

* Woolworths expects further improvement in second half except for BIG W


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