Woolworths Australia defies retail slowdown

Australia's largest supermarket chain Woolworths posted strong third-quarter sales, defying a slowdown in the retail sector.

Woolworths reported a 14.7 per cent increase in third quarter sales from continuing operations to A$7.395 billion ($7.9 billion), adjusted for a comparable 12-week period.

Sales increased at the fastest pace in three years, at a time when many retailers are suffering from deteriorating consumer sentiment, intense competition, rising interest rates and spiralling petrol prices.

The figure was boosted by Australian Liquor and Hospitality Group and MGW Hotels, which Woolworths acquired last year.