Woolworths’ Australian food sales are up 1.7 per cent to $9.32 billion for the first quarter of 2016/17.

The supermarket giant’s comparable food sales grew 0.7 per cent in the 14-week period, while prices, on average, went down 1.9 per cent and liquor sales rose 3.8 per cent to $1.97 billion.

Woolworths chief executive Brad Banducci said Australian food sales had grown on a comparable basis for the first time since the second quarter of 2014/15 and while sales momentum was improving, trade in the Christmas period would be crucial to the group’s full-year results.

“Customers continue to respond to the improvements we are making, with Australian Food delivering its first positive comparable sales growth since Q2’15, despite ongoing material price deflation,” he said.

Woolies rounded out the quarter with 991 supermarkets after closing three supermarkets, also finishing with four Thomas Dux stores.

The conglomerate’s liquor business,Endeavour Drinks Group, had sales increase by 3.8 per cent to hit $2 billion for the quarter, compared to the previous year.

Discount department store, Big W saw sales decrease 5.5 per cent based on the previous year to $880 million. Woolies said it expects “modest improvement in apparel sales in the second half as we transition to directly sourced and designed product.”

Comparable sales decreased 5.7 per cent for Big W, which Woolies attributed to being impacted by “significant SKU reduction and clearance activities in deleted lines as well as a reduction in the number of unprofitable promotions.”

Woolworths no longer reports sales from the failed Home Improvement business, though it said the sale of Masters’ inventory is “proceeding well”.

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