Countdown has increased revenue 1.1 per cent in the first quarter of its financial year as it benefited from sales at new stores.

Sales at New Zealand supermarkets rose to $NZ1.5 billion ($A1.40 billion) in the 14 weeks ended October 5, from $NZ1.48 billion in the year earlier period, Sydney-based parent Woolworths said in a statement on Monday.

Comparable sales for the quarter, which excludes the impact of store openings and closures, fell 0.1 per cent, impacted by low inflation and continued subdued grocery industry market conditions, the company said.

Countdown said that its overall prices were flat as higher dairy prices were offset by lower prices across other products including grocery, bread, liquor, and produce.

Countdown MD, Dave Chambers, said the company had been cutting prices through its “price lockdown” and “price drop” campaigns, including reducing the price of a homebrand loaf of bread to $NZ1.

As a result of the campaigns, more people were buying these products, leading to growth in customer transactions and items sold, he said.

The supermarket chain, which competes with the Foodstuffs cooperative’s New World and Pak ‘n Save chains in New Zealand, plans to open a new store on Tuesday to take the total number of Countdown outlets to 172.

Progressive Enterprises, the New Zealand subsidiary of Woolworths, also operates 59 Fresh Choice and Super Value franchise stores.

In the year earlier period, Progressive had 166 Countdown supermarkets and 56 franchise stores.

In Australia, parent company Woolworths posted a three per cent rise in first quarter sales to $A16.12 billion, which it said was less than expected as it discounted prices amid increased rivalry.

BusinessDesk