Struggling discount department store Big W is showing signs of a sales turnaround after it returned to positive growth in over a year.
Big W's sales of $890 million for the 14 weeks to October 1 were up 2.5 per cent on the previous year, thanks to steep price cuts that brought shoppers in the door.
The Woolworths-owned retailer's crucial comparable sales - which strips out store closures and new openings - rose 2.9 per cent in the first quarter, up from a 5.7 per cent fall in the same period a year ago.
It is the first quarter of positive comparable sales growth for Big W since a slim, one per cent lift in the final quarter of 2015/16, and Woolworths has cautioned that it is early days in any turnaround.
Big W has struggled for several years with sluggish sales and losses, including a $150.5 million loss and a 5.8 per cent fall in sales during 2016/17.
The company has previously said that Big W's disappointing performance in the last financial year was a continuation of a "multi-year" decline partly due to aggressive discounting in the sector.
Big W chief executive David Walker said the prices of around 2,700 product lines have been slashed by about 20 per cent over the past five months.
"We really focused on regaining the trust of customers on our prices," Mr Walker told reporters on Tuesday.
He said price cuts on products such as towels had delivered a five-fold increase in sales.
BigW's has been lagging its major competitor Kmart, which is owned by Wesfarmers and has been rejuvenated in recent years.
Kmart posted comparable sales growth of 4.9 per cent during the first quarter of 2017/18.
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