21 Apr 2012

Tough quarter for supermarket chain

6:50 am on 21 April 2012

Sales at Woolworths have risen slightly, but the Australian supermarket company says the retail environment remains tough due to natural disasters and price cutting.

The group's total sales were up 3.8% in the third quarter of the financial year to nearly $A14.1 billion.

However, same-store sales at its food and liquor operations in Australia were flat. Sales at its Countdown chain in New Zealand rose almost 3% to $1.4 billion.

Chief executive Grant O'Brien says it was a good result, despite natural events such as floods and cyclones.

He says the company is in talks with potential buyers about the sale of the Dick Smith discount electronics chain, which was announced in January.

Thirteen of these stores were closed in the first quarter of the year and another 23 will be closed in the fourth quarter.

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